In the constantly changing network of social and cultural processes in contemporarymodern societies, a cultural internalization is occurring, during which the dictated rules and regulations of society become a part of human character. This article discusses how people who live within a community identify themselves and construct the social character of that area in the context of gentrification. Two theories are discussed to explain this phenomenon: social representation theory and social capital theory. Gentrification of the neighbourhood as the simultaneous process has laid out the scene and has created the context for this study. A community can be identified by the neighbourhood and the resulting intertwined relationships. The community of Supilinn neighbourhood in Tartu city, Estonia has been explored.