Local economic development (LED) strategies at the district level—such as sub-city or neighbourhood initiatives—play a crucial role in fostering sustainable and inclusive urban growth. This study explores the critical factors influencing LED and urban regeneration at the district scale, emphasising the integration of sustainability, digital technologies, inclusivity, energy efficiency, community engagement, and innovation into strategic planning. To prioritise these CFs, a tailored survey was distributed among a group of 13 city experts from European cities, involved in research projects focused on district-level quality-of-life enhancements through building retrofits, urban space interventions, energy community promotion, and technological deployment. By focusing on the district level, this research highlights the importance of tailoring strategies to local contexts and leveraging the unique characteristics of each neighbourhood. The findings reveal the need for local governments to enhance the capacity of administrative staff to engage citizens and direct external support for development projects. The normative recommendations derived from this study are specifically grounded in district-level research and practice, ensuring their applicability to sub-city areas. This paper concludes that a context-specific and collaborative approach is essential for achieving equitable and sustainable economic development at the district level.