There has been substantiated the necessity of using modern methods of socio-economic and marketing analysis of city development in order to make effective strategic decisions. The sequence of conducting the SWOT analysis of an area is generalized. It is proved that the analysis of the area development involves, first and foremost, the search for territorial identity and uniqueness. A modern toolkit for conducting a SWOT analysis of an area is offered, which is an analysis of internal strengths and weaknesses, as well as external opportunities and threats and also justification of the most effective strategies for the area development. It is stated that SWOT-analysis is a necessary element of research, a mandatory preliminary step while drawing up strategic and marketing plans of any level. The data obtained in the result of the analysis serve as the basis for the development of strategic goals and objectives of the area. SWOT analysis enables to assess whether the area has the internal strengths and resources to realize its capabilities and counter threats, and which internal weaknesses require an early elimination. Creating a map of anchors - zones of gravity helps to justify the points of growth when developing strategic decisions. The example of the town of Lutsk shows the objects and territories that can attract potential customer - consumers and encourage the interest in visiting Lutsk increasing the consumer flow. In order to study the strengths and weaknesses of the area in-depth, the real estate market was analyzed and residential real estate was broken down into spatial development categories in Lutsk. There are four categories of local territories in the town: developing, moderately prosperous, moderately depressed, and depressed There has also been carried out a SWOT analysis of the mutual impact of opportunities and threats on the environment and the strengths and weaknesses of Lutsk. The analysis is presented in the form of tables. The factors are ranked by their importance and the final results of the analysis are formulated in the form of sound strategic decisions. It is emphasized that under the current stage of development in Ukraine it is advisable to take into account the available resource potential, uniqueness and competitive advantages of a city/town to overcome weaknesses and threats when determining the optimal development strategy and making effective project decisions. Keywords: strategic approach, city, center of gravity, SWOT analysis, spatial development.