ENAuthor tried to analyze the main regularities of spatial differentiation of real estate prices in the cities. The analysis is based on deductive methodology which is verified by empirical analysis of real estate prices in Lithuanian cities. The aim of the work was to find out and to classify the main factors causing the general tendencies of spatial differentiation of real estate prices among and inside the cities. Author analyses the main causes of formation of different real estate price levels in different cities. The outcome of this research is a model of spatial differentiation of prices of places of two levels. The first level is devoted to classifying and describing the factors causing differences of prices in different cities. The main precondition for such a difference to exist is the relative reserve of the markets. This relative closeness creates territorial and sub-territorial markets of real estate, what enables to form and to maintain differences of various forces that influence markets. The main cause of spatial differences of prices is related to the factors that determine different demand in these markets. The demand can be different if there are differences of the real estate itself (different conditions for human activities) or in market subjects which create the demand. The second level of the model describes processes and factors that cause spatial differences of prices inside cities. Author has found two main types of factors determining the main characteristics of spatial differentiation of real estate prices. There are factors causing spatial partition of real estate market and factors causing differentiation of conditions for human activity. [...].