Land as a production factor occupies a special position in the economic activities of the urban population. Land resources in big cities are not only territorial basis for placing industrial and production structures, but also a space for urban life in general. However, to assess the effectiveness of urban land use, primarily the ecological and economic potential of the use of the urban land resources should be determined aimed at sustainable development of urban agglomerations (Volodchenkov, 2010). The rapid pace of development of large cities in the world and an increase of their impact on the environment and society is accompanied by the set of economic, ecological and social problems which significantly influence the development of settlements in general (Stolʹberh, 2000; Onyshchuk, 2001). However, the process of urbanization as a result of rapid scientific and technological revolution requires large areas for deployment of large scale production facilities and urban settlements in the conditions of natural resource management (Kontorovich, Rivkin, 1986).

The priority objective of the residential urban areas development – to improve the quality of life, sustainable development principles in order to form compact urban areas and polycentric functionally and socially integrated urban and suburban structure with the help of efforts of general public institutions as well as natural and legal persons. A living area today must comply with the needs of population from various social layers, so, when planning residential areas, it is necessary to assess the varied potential of the population needs and the quality of life expression. Therefore the article seeks to find out attitudes to residents’ environment, development of social services network, infrastructure condition, functional and planned structure of the area. For the implementation of the objective, the programme in the research sites has been prepared. This programme allows multifaceted examination of existing residential areas, the assessment of their physical condition, public opinion, public needs, comments and suggestions of professionals. After analysing the results of the research and drafting conceptual principles, it can be stated that the future of Lithuanian residential districts and cities depends on the territorial spatial planning system, which is affected by the free market and democratic society. Territorial spatial planning of residential microdistricts or blocks is the key to building sustainable and attractive cities.