Hi Preeti,
You can make the modification to add "district" field at the "add property" form in file
components > com_osproperty > helpers > layouts > propertyedit.php
but after that, you need to modify the function to save that field in
components > com_osproperty > classes > listing.php function :save
and you also need to change function
components > com_osproperty > helpers > helper.php function: generateAddress to show the address of property
and back-end side so on...
By the way, this is input text field, if you want to have the dropdown select list field, it will be very complicate too.
Thanks
Dam