Although many researchers turned their attention to the transition sta
tes of Central and Eastern Europe after the dramatic changes of the la
te 1980s, there still is no comprehensive theoretical framework for th
e analysis of the transition process and its spatial impact. Urban dev
elopment in general can be described as structural, change, depending
on the economic, social, cultural and political conditions. Therefore
the Theory of Regulation offers a theoretical background, as it allows
to define the initial conditions before and the target conditions aft
er the transition as well as the necessary steps of adaptation. The ad
aptation process itself is subject to a number of theoretical approach
es, both within the economic and the social sciences. The mainly favou
red Theory of Modernization implies a ''catch-up modernization'' of th
e transitional societies, which also includes a spatial adaptation to
Western examples. On the large scale level the rent gap approach, init
ially applied to gentrification processes, offers a suitable explanati
on for the spatial development of transitional urban areas.