The paper analyses the level of modernization and spatial transformation in the city of Ukrainka, the Kyiv sattelite, which was chosen as a model city in our research. The model city and the limits of the test area were determined using the principles of territorial integrity, availability, and prospectivity. Investigation of modernization and transformation of urban space was carried by means of the field expert evaluation using the methods of system analysis and mapping. The eveluation covered the condition and the functional profile of objects situated within the test area, as well as the level of their improvement and modernization. Transformation processes in the city are regarded to be indicators showing the direction of the city development. While the process of gentrification was considered as a sing of positive-going urban development, the processes of economic and demographic decline manifest us the stagnation of a city or at least its district, therefore the city may become depressive in the future. The gentrification processes, developing in Ukrainka, indicate the intensive city development. The transformation takes course due to the Kyiv city influence. Urban space of Ukrainka is specifically characterized by the development of housing and transport functions. Key words. Suburban area, spatial transformation, level of modernization, city functions, function transformation.