Each of the 25 squares contains either a building of height 1, 2, 3 or 4, or an empty lot. Each row and each column contains exactly one of each of those.

The numbers in the twenty ‘vantage points’ around the edge denote how many buildings you can see looking along that particular row or column, so for instance if the 2 building was closest, followed by 1, 4 and 3 in that order, the vantage point would say 2, as you can see the 2-building and the 4-building, whereas the 1-building and 3-building are hidden behind taller buildings.

Here’s an example (with only 1, 2 and 3 height buildings) which might make it clearer, followed by the puzzle itself: