Local policy makers seek ways to deal with their abandoned industrial heritage. The investments made in these industrial heritage sites are often very substantial and designed to stimulate urban renewal. In this paper, we study whether the redevelopment of five industrial heritage sites caused external effects on house prices of nearby residential areas in The Netherlands. We use a hedonic approach to do a quasi-experiment by comparing house prices before and after the transformation. The external effect is captured by interacting the year of transformation and different distance rings around each industrial heritage site while controlling for many other important variables. We pay special attention to defining the target and control area. If the investments were made on the interior of the industrial heritage site, we find that there are no external effects on house prices of nearby residential areas. If the investments were made on the exterior of the industrial heritage site, we find positive and significant external effects on house prices. However, the decay of these effects over space are different for each case. These results suggests that the external effects are highly heterogeneous and that there is no ‘one-size-fits-all’ policy for redeveloping industrial heritage to induce positive externalities on nearby residential areas.