Aim of the article is to determine criteria and indicators of urban territory efficiency based on the concept of high and best urban territory use. Efficient use of urban territory is considered to be conformity between the urban land use and the City interests as a unified social-economic spatial system, rational location of different functional properties on the urban land, considering municipal and local needs of the land users System formation for efficiency criteria and indicators for urban territory use involves decomposition of this statement, its specification by the formalized indicators that reflect different aspects of efficiency. The article contains the offer and algorithm to form the system as follows. At the first stage the main aspects of the term 'Efficiency of the Urban Territory Use' are described. The authors represent the concepts for sustainable social-economic development and 'green economics' and define the following aspects: economic, social, ecological, urban planning aspects. The concept of high and best land use (HBLU) is proposed to be applied as the methodological base to form the system of indicators and efficiency. The below definition of HBLU as applied to the urban territory is proposed in the article: 'High and best urban land use is the use option that is socially acceptable (it does not decrease the living standards of the citizens or some of them; or even improves social status of the citizens), e. g. ecologically (it meets the regulations, does not increase the environmental impact (or increases it within permissible limits)), acceptable from the urban planning point of view, and maximizes the rental income from the urban territory. At the second stage the efficiency criteria for the above aspects is described. At the third stage the efficiency criteria is being developed into the system of complementary indicators. The article discloses the algorithm for the indicators system that reflects achievement of the above efficient urban development aspects, their structure and subordination. Two levels are proposed in the criteria system for the urban territory efficiency - direct and indirect criteria and efficiency indicators. The main criteria for urban territory efficiency on the first level is the territory rental yield, and the indicators are economic forms where it is reflected: land tax, rental payment, land price. Rental yield is to be maximized and provided by meeting ecological, social, and urban planning restrictions. The article contains a list of the above restrictions. The second level is introduced by the criteria and indicators of the chosen option impact on the urban industrial and territorial development.