In an era characterized by rapid urbanization and technological advancement, the concept of smart urban development has emerged as a crucial driver of sustainable growth and enhanced quality of life. With an increasing focus on leveraging innovation to address contemporary urban challenges, there is a growing need to systematically assess and benchmark the progress of cities toward achieving smartness. By quantitatively assessing various dimensions of urban smartness, benchmarking enables local governments to make informed decisions and prioritize resources effectively. This chapter aims to contribute to this discourse by employing data envelopment analysis to evaluate the perceived smartness levels of European cities, offering valuable insights specifically for local governments, policymakers, urban planners, and citizens. Drawing upon data sourced from the most recent Eurostat Urban Audit Perception Survey, the chapter employs inhabitants perceived urban performance, and creates a model for the assessment of the efficiency of smart cities initiatives. The results of efficiency analysis may serve as a diagnostic mechanism for identifying areas where enhancement is needed. By benchmarking their city's performance against counterparts and drawing lessons from successful local government-led smart cities initiatives, municipal authorities can devise targeted strategies to augment smartness levels and elevate residents’ overall quality of life.