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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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    References listed on IDEAS

    as
    1. Alket Kullolli, 2014. "The Effect of FDI in the Albania Economy," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 3, June.
    2. Glaeser, Edward L. & Gyourko, Joseph & Saiz, Albert, 2008. "Housing supply and housing bubbles," Journal of Urban Economics, Elsevier, vol. 64(2), pages 198-217, September.
    3. Filipos RUXHO & Christos Ap. LADIAS, 2022. "Increasing Funding For The Regional Industry Of Kosovo And The Impact On Economic Growth," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 117-126, June.
    4. Alfaro, Laura & Chanda, Areendam & Kalemli-Ozcan, Sebnem & Sayek, Selin, 2004. "FDI and economic growth: the role of local financial markets," Journal of International Economics, Elsevier, vol. 64(1), pages 89-112, October.
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    6. Eglantina Hysa & Livia Hodo, 2016. "Foreign direct investment and economic growth in Albania: a co-integration analysis," International Economics, University of Lodz, Faculty of Economics and Sociology, issue 15, pages 234-244, September.
    7. Ashish Gupta & Graeme Newell & Deepak Bajaj & Satya Mandal, 2020. "Determinants of foreign and domestic non-listed real estate fund flows in India," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 38(6), pages 503-524, July.
    8. Dimitrios Tsiotas & Serafeim Polyzos, 2018. "The Complexity in the Study of Spatial Networks: an Epistemological Approach," Networks and Spatial Economics, Springer, vol. 18(1), pages 1-32, March.
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    Keywords

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    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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