More than 40 protesters went on the march to protest about plans for an £8m centre for disadvantaged young people.
The Government-backed foyer project, planned for the site of the Abbey Place car park in the centre of Oxford, has been named as the city council's Millennium Youth Project.
But people living in Paradise Square and other surrounding streets fear the centre will attract "problem people" including drug users.
A protest group called Roses - Residents of St Ebbes Society - marched through the city centre on Saturday against the plans.
Spokesman Rob Walters, 51, of Paradise Square, said: "The nearest pub The Duke of York is 25 metres away, and the area is full of pubs and clubs.
"It is a most unsuitable location for a project like this, where residents may be suffering drug or alcohol-related problems."
Disabled pensioner Albert Magness, 81, who lives nearby with his wife Margaret, also 81, said he feared his home could be targeted by burglars.
"This certainly is not what we want in the new Millennium," he said.
"My wife and I are both wheelchair users and this makes us both feel very vulnerable."
Ann Hoban, 53, of Faulkner Street, added: "All the residents are very concerned about burglaries."
Council leader John Tanner promised residents would be fully consulted before the new building is constructed.
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