Šiauliai, the fourth-largest city in Lithuania, is emerging as one of the country’s most promising industrial and real estate investment hubs. With its Free Economic Zone (Šiauliai FEZ), strategic location, and government-backed business incentives, the city is quickly transforming into a magnet for industrial development and urban growth.
This transformation is having a strong impact on both commercial and residential property markets, opening new opportunities for investors, developers, and residents alike.
Economic Profile of Šiauliai
Located in northern Lithuania, Šiauliai sits just 130 km from Vilnius and 120 km from Riga. This positioning provides excellent access to Baltic and EU markets via road, rail, and air.
The Šiauliai Free Economic Zone (FEZ) is a major catalyst for economic expansion:
- Total area: 130 hectares
- 0% corporate income tax for the first 10 years
- Ready-to-use infrastructure and utility access
- Direct rail and highway links
- Business-friendly regulations and logistics support
The zone hosts a growing number of companies in logistics, manufacturing, food processing, and high-tech sectors.
Commercial Real Estate: Rapid Growth
FEZ development has triggered a surge in demand for logistics hubs, industrial facilities, and modern offices. Between 2020 and 2024, industrial property stock in Šiauliai expanded by over 40%. Despite this growth, prices remain competitive compared to Kaunas and Vilnius.
Average Commercial Real Estate Prices (2025):
| Property Type | Purchase Price (per m²) | Rental Price (per m²/month) |
|---|---|---|
| Industrial buildings | from €600 | €4–6 |
| Warehousing & logistics | from €700 | €5–8 |
| Office space | from €850 | €6–10 |
| Business land plots | from €30/m² | — |
Rental demand is strongest near the FEZ, where infrastructure is most developed. Forecasts suggest a 10–15% increase in rental rates over 2025–2026 due to limited supply and rising demand.
Residential Real Estate: Steady Expansion
The influx of professionals, engineers, and support staff tied to industrial projects has led to growing demand in the residential segment. Mid-range and upper-comfort apartments, as well as single-family homes in suburban areas, are in particularly high demand.
Average Residential Property Prices (2025):
| Property Type | Average Price | Price per m² |
|---|---|---|
| 1-room apartment (center) | from €65,000 | €1,450/m² |
| 2-room apartment | from €85,000 | €1,350/m² |
| 3-room apartment | from €100,000 | €1,250/m² |
| Detached house (in city) | from €140,000 | from €1,100/m² |
| Newbuilds near FEZ | — | from €1,600/m² |
Over the past 3 years, housing prices in Šiauliai have risen by approximately 18–20%, especially in areas with strong transport connectivity and proximity to FEZ.
High-Potential Investment Areas
Šiauliai City Center
- Ideal for long-term rentals
- Home to universities, cultural institutions, and administrative offices
- Consistent rental demand, central infrastructure
Areas Near FEZ
- New residential blocks and townhouses under development
- Housing targeted toward FEZ employees
- Rapid infrastructure growth
Suburban Districts (Zaliakalnis, Verduliai)
- Attract families looking for quiet surroundings
- Land remains affordable for private development
- Increasing interest in detached housing
Who Is Investing in Šiauliai
- Local developers focused on residential projects near FEZ
- Foreign firms acquiring industrial and logistics properties
- Private investors purchasing apartments for workforce rentals
- Government programs supporting energy-efficient and sustainable construction
Market Trends to Watch
- Mixed-use development combining residential and office space
- Green buildings and smart homes with solar panels and automation
- University-industry collaboration driving demand for high-quality rentals
- Expansion of suburbs offering affordable land with high growth potential
Outlook for 2025–2027
- Commercial property prices expected to grow by 6–8% annually
- Residential prices forecasted to rise 3–5% per year
- Increased rental demand from incoming workers and foreign firms
- New industrial zones to generate job growth and housing demand
- Continued support for sustainable urban planning and development
Conclusion
Economic Zones and Real Estate: Šiauliai’s Investment Potential highlights how industrial strategy and urban expansion go hand in hand. With Šiauliai FEZ driving logistics, manufacturing, and innovation, the city is seeing clear ripple effects across its property market.
Šiauliai today offers investors a rare combination: affordable entry prices, strong demand, and long-term economic momentum. For those seeking growth, stability, and industrial synergy — Šiauliai is one of Lithuania’s most promising places to invest.
