"Gentrification" is considered to be one of the key words in urban planning matters over the last few years. The slow exchange from a neighbourhood's habitants to new, financially stronger residents was not only one of the most interesting phenomena of the last decades; it also confronted governments with unforeseen new problems. As the competition between different cities gained in importance, there were an increasing number of cases of "state-led gentrification"; the systematic upgrading of underprivileged neigbourhoods by the government. The International Building Exhibition (IBA) in Hamburg, which took place from 2006 to 2013 on the Elbe's islands Wilhelmsburg and Veddel, struggled with numerous protests and criticism concerning this matter. Over recent years, the low level of economic investment on the Elbe's islands, led to them becoming problematic areas. When the IBA started, media began to show interest in the area which in turn, attracted new investments in housing estates which pushed up rental prices much higher than the neighbourhood's average. Using interviews with the key protagonists around Wilhelmsburg and the IBA, this study aimed to address the key questions around the processes occurring in this area, and whether they could be described as gentrification, or whether displacement was already happening and was expected. Furthermore, a recommended course of action for similar cases was designed to achieve a neighbourhood's regeneration without people having to be displaced. The results show, that regenerating an area doesn't always mean gentrification. In neighbourhoods like Wilhelmsburg, where infrastructure and housing conditions are well below average, upgrading can be seen as adapting to the standards. There are, however, clear changes in the population and housing structure in Wilhelmsburg. If more explicit displacement processes are to happen in the future, a strategy must be established to absorb those developments (e.g. increased social housing activities).