The aim of this research is to develop a rating methodology which could be used to evaluate the state and the condition of the real estate market. Housing market is related to urban condition and it creates a causative area for numerous evolutionary phenomena and area growth. Real estate markets play an increasingly important role in the global economy and attract a growing number of international investors. Reliable classification and scoring systems will continue to grow and become an essential tool in the process of investment planning. The established rating classification provides a reliable and comparable view of cities conditions useful in investment process.