Recent advances in generative modeling have substantially enhanced 3D urban generation, enabling applications in digital twins, virtual cities, and large-scale simulations. However, existing methods face two key challenges: (1) the need for large-scale 3D city assets for supervised training, which are difficult and costly to obtain, and (2) reliance on semantic or height maps, which are used exclusively for generating buildings in virtual worlds and lack connection to real-world appearance, limiting the realism and generalizability of generated cities. To address these limitations, we propose Sat2RealCity, a geometry-aware and appearance-controllable framework for 3D urban generation from real-world satellite imagery. Unlike previous city-level generation methods, Sat2RealCity builds generation upon individual building entities, enabling the use of rich priors and pretrained knowledge from 3D object generation while substantially reducing dependence on large-scale 3D city assets. Specifically, (1) we introduce the OSM-based spatial priors strategy to achieve interpretable geometric generation from spatial topology to building instances; (2) we design an appearance-guided controllable modeling mechanism for fine-grained appearance realism and style control; and (3) we construct an MLLM-powered semantic-guided generation pipeline, bridging semantic interpretation and geometric reconstruction. Extensive quantitative and qualitative experiments demonstrate that Sat2RealCity significantly surpasses existing baselines in structural consistency and appearance realism, establishing a strong foundation for real-world aligned 3D urban content creation. The code will be released soon.