Research subject of this doctoral thesis are real estates owned by cities in the Republic of Croatia, management effectiveness assessment of the mentioned real estates and analysis of efficiency determinants. Main research question to which this thesis should provide an answer is whether the cities manage real estates in their ownership in an effective manner. Management of city property can be defined as a phrase which encompasses a range of different complex and multidisciplinary activities within cities’ business operations. Decentralisation process has almost overnight turned local self-governments to “real estate giants”, i.e. new owners of real estates, where cities now have properties of a significant number and great value in their ownership, amongst which the real estates are the most valuable ones. Research represents the first empirical management efficiency analysis of real estates owned by the cities in the Republic of Croatia, whereby the scientific problem of the paper results from the lack of systematic care of real estates. Observing the financial aspect, there is also the problem of the non-existence of an appropriate benchmark which would be appropriate for the measurement of successfulness. While considering the abovementioned, it can be concluded that even a superficial overview of the issue of real estate management is sufficient to conclude that it is an extremely complex and dynamic area which requires significant engagement of experts of different profiles and a scientific approach. Some of the research questions to which the doctoral thesis provides answers are: which features of the cities influence the effectiveness of real estate management, do the size and geographical position influence the management effectiveness. Also, some of the scientific goals of the research have the function of empirical analysis research of cities’ management efficiency, as well as the features on which they effect. In accordance with the mentioned research questions and goals, five hypotheses will be tested. The set hypotheses will be tested with the use of secondary data, quantitative analysis is based on two analytic approaches, nonparametric method of data hedging and Tobit panel regression. Real estate management is a sensitive question of primary political significance with significant and far-reaching consequences on the wider social community. Cities consider real estate management as a powerful tool for creating added value, lowering of maintenance and management costs and improvement of quality of life in the community. Real estates owned by cities and their great value are indirect ownership of all citizens, what makes the insurance of their effective management important.