The real estate industry plays an important role in the economic development of the country. It makes a major contribution to GDP both in the country and in the European Union, providing prosperity and jobs. According to Central Statistics, the share of real estate operations in GDP of Latvia reached 9.9 % in 2022. In order to expand this sector, it is essential to develop a real estate strategy at the municipal level. Real estate plays a significant role in the social and economic development of municipalities. Real estate tax is an important source of revenue for municipalities that finances public services and infrastructure projects as well as provides housing for residents. It is not always necessary to create a separate municipality’s real estate strategy, these may be plans for the development and maintenance of real estate, which are included in the general development strategy of the municipality. Local governments may use special zoning and motivating rules to promote the development of real estate that meets the economic goals of a particular settlement. The development strategy of real estate should be based on a sustainable living environment, ensuring a high quality of life and affordable real estate for the residents of the municipality. The most important direction of the strategy is the use of technologies and innovations that increase the productivity of the municipality’s work.