Local governments sell many immovables such as land plots, buildings, agricultural land and lodging to generate revenue. In this study, the importance of real estate sales in local government revenues is examined by literature and legislation review. The sale of real estate is an important source of revenue for municipalities, but it is not the case for special provincial administrations, affiliated administrations of metropolitan municipalities and local administration unions. In the 2008-2022 period, 7.4% of the budget revenues of the municipalities ($965 million per year) originated from the sale of real estate. The most important share among the immovables sold is the land plots, which are immovables with a zoning plan. However, the sale of real estate is not a sustainable source of revenue is contrary to the principle of economy that dominates the Turkish financial system. In many countries around the world, local governments grant long-term use permits instead of selling their immovable properties. Thus, at the end of the usage period, the real estate can be used for other public services and the urban rent (unearned income) remains in the hands of the public. The article argues that Turkish local governments can generate the same or similar levels of revenue by using other means instead of selling immovable properties. However, instruments such as the easement right, long-term lease, transfer of operating right, real estate investment trust, real estate investment fund, lease certificate and revenue partnership in the legislation do not meet the needs of local governments. Legislative amendments are needed to enable local governments to use these instruments. Besides the sale of some immovable properties of local governments should continue to ensure planned urbanization or to reduce public expenditures.