OICC Press Creative City Design 2717-4190 8 1 2026 08 17 Transformation of Urban Neighborhoods from the Perspective of The Public Perception EN Farzaneh Abedian Aval Department of Environment and Planning, University of Aveiro, Aveiro, Portugal https://orcid.org/0009-0005-2122-6978 Myriam Lopes CESAM & Department of Environment and Planning, University of Aveiro, Aveiro, Portugal https://orcid.org/0000-0002-7624-1279 Sina Ataee CESAM & Department of Environment and Planning, University of Aveiro, Aveiro, Portugal Santosh Bhandari CESAM & Department of Environment and Planning, University of Aveiro, Aveiro, Portugal https://orcid.org/0000-0003-0816-1856 Mohammad Ganjali Khosroshahi Department of Urbanism, Mashhad Branch, Islamic Azad University, Mashhad, Iran https://orcid.org/0009-0008-2583-3718 Journal Article 2026 08 17 Aims: Urban neighborhoods continuously transform due to complex interactions among historical, demographic, socio-cultural, economic, and governance factors. Understanding these transformations is crucial for sustainable urban planning [1, 2]. This study examines the evolution of the Sisabad neighborhood in Mashhad, Iran, using urban complexity theory and a system dynamics approach. The research aims to explore the key drivers of neighborhood change and their interconnected feedback loops, focusing on public perceptions of these transformations. Methodology: The study employs an extensive focus group discussion involving 850 participants, representing 20% of local families. This qualitative data collection method captures diverse perspectives on neighborhood changes. The analysis integrates public perception data with system dynamics modeling to identify key transformation patterns, including population growth, land use shifts, economic transitions, and governance influences. Findings: The results indicate that increasing migration, informal housing development, and declining access to public services have significantly altered the socio-economic and spatial landscape of Sisabad. Weak governance, low public participation, and reduced institutional legitimacy have further exacerbated urban disparities. The study highlights the interconnection of demographic changes, economic transitions, and governance structures in shaping neighborhood evolution. Conclusion: This research contributes methodologically by combining qualitative public perception analysis with system dynamics modeling, providing a holistic framework for understanding urban complexity. However, the findings are context-specific, and the absence of extensive quantitative modeling is a limitation. Future studies should conduct comparative analyses across different urban settings, integrate advanced geospatial and data-driven methods, and explore the role of climate resilience and governance innovations in urban transformation. The study underscores the necessity of inclusive, adaptive, and participatory urban planning strategies to foster sustainable neighborhood development.