This paper analyzes the impact of large-scale urban development projects (UDPs) in European cities, focusing on their role in neoliberal urban policy and their effects on urban governance, social polarization, and economic restructuring. The study examines thirteen UDPs across twelve EU countries, revealing how these projects are increasingly used as tools for exceptionality in planning and policy, reflecting a neoliberal “New Urban Policy” that prioritizes elite-driven governance over democratic participation. Local democratic mechanisms are often formalized but not effectively implemented, leading to a new choreography of elite power. UDPs are poorly integrated into broader urban planning, resulting in ambiguous impacts on cities and their areas. They exacerbate socioeconomic polarization through real-estate markets, public budget shifts, and labor market restructuring. These projects reflect changing spatial governance scales, influencing power dynamics in urbanization. UDPs are often state-led and state-financed, aiming to reinvigorate local economies and improve tax bases through urban reorganization. They are frequently associated with market-oriented approaches, with state involvement in covering deficits. The projects often involve public-private partnerships and are characterized by institutional fragmentation and “pluralistic” governance. These projects are often driven by elite interests, leading to exclusion and the creation of socio-spatial divides. The focus on place-based development has shifted from universalist to spatially targeted approaches, often excluding marginalized groups. UDPs are frequently funded by national or EU sources, leading to competition for resources and the formation of exclusive growth coalitions. These projects are often managed through authoritarian means, with clientelism and elite networks playing a central role. The financial viability of UDPs depends on high-income segments and real-estate speculation, leading to the creation of urban islands and socio-economic segregation. The paper concludes that neoliberal urbanism has led to a democratic deficit, with urban regeneration policies increasingly dominated by elite interests and market-driven approaches, resulting in fragmented and polarized urban environments.This paper analyzes the impact of large-scale urban development projects (UDPs) in European cities, focusing on their role in neoliberal urban policy and their effects on urban governance, social polarization, and economic restructuring. The study examines thirteen UDPs across twelve EU countries, revealing how these projects are increasingly used as tools for exceptionality in planning and policy, reflecting a neoliberal “New Urban Policy” that prioritizes elite-driven governance over democratic participation. Local democratic mechanisms are often formalized but not effectively implemented, leading to a new choreography of elite power. UDPs are poorly integrated into broader urban planning, resulting in ambiguous impacts on cities and their areas. They exacerbate socioeconomic polarization through real-estate markets, public budget shifts, and labor market restructuring. These projects reflect changing spatial governance scales, influencing power dynamics in urbanization. UDPs are often state-led and state-financed, aiming to reinvigorate local economies and improve tax bases through urban reorganization. They are frequently associated with market-oriented approaches, with state involvement in covering deficits. The projects often involve public-private partnerships and are characterized by institutional fragmentation and “pluralistic” governance. These projects are often driven by elite interests, leading to exclusion and the creation of socio-spatial divides. The focus on place-based development has shifted from universalist to spatially targeted approaches, often excluding marginalized groups. UDPs are frequently funded by national or EU sources, leading to competition for resources and the formation of exclusive growth coalitions. These projects are often managed through authoritarian means, with clientelism and elite networks playing a central role. The financial viability of UDPs depends on high-income segments and real-estate speculation, leading to the creation of urban islands and socio-economic segregation. The paper concludes that neoliberal urbanism has led to a democratic deficit, with urban regeneration policies increasingly dominated by elite interests and market-driven approaches, resulting in fragmented and polarized urban environments.