How to get the IP address of the server on which my C# application is running on?

Nope, that is pretty much the best way to do it. As a machine could have several IP addresses you need to iterate the collection of them to find the proper one.

Edit: The only thing I would change would be to change this:

if (ip.AddressFamily.ToString() == "InterNetwork")

to this:

if (ip.AddressFamily == AddressFamily.InterNetwork)

There is no need to ToString an enumeration for comparison.