This study investigates the revitalisation of the main street of Beyoglu, which was the westernised part of Istanbul's CBD in the nineteenth century. Beyoglu started to develop in the sixteenth century with the introduction of embassy buildings of European countries. Its development reached a climax during the nineteenth century as a result of increased European trade and cultural influence, remaining the most distinguished quarter of Istanbul until the 1960s. Thereafter, it suffered from decay, disinvestment and abandonment as a result of later suburbanisation and the multi-centre development of Istanbul. Revitalisation of the quarter started with the pedestrianisation of the main street. This study investigates the functional transformation and changes in land prices along the main street and surrounding neighbourhoods after the pedestrianisation. The factors which effect land prices are investigated by the use of regression analysis. According to the results, access to mass transit is the most important factor. Besides its convenient central-city location, with easy access to the city's main transportation arteries, no doubt also its distinguished architectural character contributed to its revitalisation. Although the revitalisation of the main street as a cooperative movement of public and private sectors, effectively, it was a market-lead restructuring afterwards. At the same time, international companies opening up stores reflecting the globalisation movement increased the attractiveness of the main street. The results of the study can be used by urban planners, policy-makers and investors for the revitalisation of other historical neighbourhoods in Istanbul and other cities. For further research, hierarchical analysis of spatial impacts of revitalisation areas is suggested.