PurposePost-socialist urban development changed cityscapes and city life profoundly, reusing public space in a different manner and reinterpreting the role of work, heritage, and consumption among others. Focusing on two case studies – the Outer Józsefváros in Budapest and the Praga North district in Warsaw – the paper examines this transformation, following how and to what extent these characteristic neighbourhoods have changed, how local heritage has been reconceptualised and what role work has played in this process.Design/methodology/approachThe comparative analysis combines a literature review with a case study investigation that includes interviews, on-site visits, experiments with locally driven adaptive reuse, and document analysis.FindingsThe two case studies put heritage conservation, identity building and value determination processes in the context of architectural design, economic investment and labour market. The paper shows the relation between aesthetics and economic transition, how work, or its loss, has shaped the areas, creating a milieu of transition in a physical and a social sense, offering a reconceptualization of local identity. It also highlights the seminal value of civic initiatives and artists/artisans to increase the engagement of the local community.Originality/valueThe paper provides a rarely done comparison between two former Socialist cities undergoing similar transformations. It focuses on work as intangible heritage, the connected architectural aesthetics and their role in shaping the identity of various groups.