In this paper, we study the consequences of neoliberal urban policy, in terms of the segregation and social changes experienced in the Cabanyal neighborhood located in Valencia, Spain. In doing so, we analyze the process of residential mobility that has affected the neighborhood during the last decade, resulting in a segregation of space. This neighborhood had been affected, since 1988, by an urban project that was to bring about its partial destruction. Despite having been stopped, the project has caused a dynamic of physical and social degradation of the neighborhood against which the local government has only very recently started to intervene. Using microdata from the Residential Variation Statistics provided by the Statistical Office of the City of Valencia, we analyze the demographic profile of the mobility inside the Cabanyal neighborhood and also the origin of the arrivals and the destination of the departures from 2004–2016. The aim is to identify the territorial pattern of the socio-demographic changes that have affected the neighborhood. The results indicate that during the period under analysis, in which the area was affected by the urban project, a progressive loss in the Spanish population was occurring, as well as a substitution of non- EU immigrants, who were predominant at the beginning of the period, with EU immigrants. This process has produced a high level of residential segregation, since immigrants from the European Union are viewed more negatively than immigrants from outside of the European Union, which, along with their lower level of education and employment in low-skilled and poorly paid jobs, makes their social integration and interaction more difficult.

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