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Foreign Direct Investment In Real Estate In Albania And Its Impact On Gdp

Author

Listed:
  • Antoneta POLO

    (Assoc.Prof.,"Eqrem Çabej" University, Gjirokastra, Albania)

  • Enkela CACA

    (Assoc. Prof.,"Eqrem Çabej" University, Gjirokastra, Albania)

  • Ilirjana ZYBERI

    (Assoc. Prof.,"Eqrem Çabej" University, Gjirokastra, Albania)

  • Christos Ap. LADIAS

    (Professor, Regional Science Inquiry Journal, Greece)

  • Filipos RUXHO

    (Faculty of Agribusiness, University of Haxhi Zeka, Peja, Kosovo,)

Abstract

Foreign Direct Investment (FDI) in real estate has played an increasingly significant role in Albania’s economic development, particularly over the past decade. This paper examines the relationship between real estate FDI and Gross Domestic Product (GDP) in Albania over a five-year period, analyzing whether foreign investment in the real estate sector has acted as a driver of economic growth or merely reflected broader macroeconomic trends. Our empirical findings suggest that FDI in real estate (RE) has had a positive contribution to GDP growth, particularly through increased urban development and rising property values in key economic centers like Tirana and coastal cities. This study provides valuable insights for policymakers, emphasizing the need for strategic reforms to enhance the benefits of real estate FDI while mitigating risks associated with speculative activities. This study, also, contributes to the literature on FDI and economic growth, offering a case-specific analysis of Albania and providing policy recommendations for optimizing the benefits of foreign investments in real estate.

Suggested Citation

  • Antoneta POLO & Enkela CACA & Ilirjana ZYBERI & Christos Ap. LADIAS & Filipos RUXHO, 2025. "Foreign Direct Investment In Real Estate In Albania And Its Impact On Gdp," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 135-142, June.
    • Handle: RePEc:hrs:journl:v:xvii:y:2025:i:1:p:135-142
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    More about this item

    Keywords

    Foreign Direct Investment (FDI); Real Estate; Economic Growth; GDP; Albania; Regression Analysis;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts

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