Residents walk in front of the Kapoor mansion in Peshawar on Friday. AFP

The ancestral homes of Golden Age heroes Raj Kapoor and Dilip Kumar in the northwestern city are symbols of its link to the world's largest film industry, but have suffered from decades of neglect.

The region's archaeology team says it is close to wresting the more than 100-year-old buildings, located in the heart of the historic walled city, from their private owners so they can be restored and turned into museums.

Residents walk in front of the Kapoor mansion in Peshawar. AFP

"I always feel sad and angry while looking at Kapoor's house, that it once was a beautiful mansion of top quality," said Samiuddin Khan, who remembers running through the 40-room abandoned house as a child and flying kites from the rooftop.

"It was extremely beautiful inside. The structure is still intact but some walls have collapsed and much of the wood has been damaged."

Once an architectural wonder, the family home of Kapoor, who died aged 63 in 1988, is influenced by Mughal empire, Central Asian and British colonial design, featuring ornately carved doors and balconies and gothic-style windows.

Kumar lived in a simpler home down a small lane in a busy market, its entrance faded and its roofless interior heavily damaged.

The actors grew up in a quarter that is home to the fabled Qissa Khwani ("Storytellers'") Bazaar where travellers would share tales of their adventures.

Kumar, who is now 97, has credited his successful career to his early life in the neighbourhood, where he first learned to narrate.

But like many emerging actors, the pair were enticed away from Peshawar to India's entertainment centre Bombay, now Mumbai, in the years before the partition of British-ruled India.

Residents walk in front of the Kapoor mansion in Peshawar. AFP

The pair even starred alongside each other at the beginning of their careers, in the 1949 hit "Andaz."

"This is our cultural heritage and we take pride in preserving it. We are very proud that Dilip Kumar and Raj Kapoor were from Peshawar," said Abdul Samad, director of archaeology and museums in Khyber Pakhtunkhwa (KP) province — of which Peshawar is the capital.

Present-day Indian superstar Shah Rukh Khan, known as the King of Bollywood, also has links to the area but his family home, which is still in use has not suffered the same decline.

"If a proper archaeological survey was conducted, we would discover a cultural site almost every kilometre," said archaeological director Samad about KP province.

There are hurdles still to overcome in saving the Kapoor mansion too.

Its owner Hajji Ali Qadir told AFP he would take the authorities to court if they did not pay him at least Rs2 billion ($12.5 million).

"I told them that it's an antique and the price for an antique is multiplied 10 times," he said. "We will get more money if we build a plaza here."

The archaeology department has said it will use legal powers if needed to purchase the Kapoor and Kumar homes with taxpayer money, for a figure still to be determined by the province's financial authorities.