Balancing Economic and Construction Growth with Environmental Sustainability in Albania's Real Estate Sector

This study aims to examine the relationship between real estate development and environmental impact in Albania during the period of 1995-2022. This is among the first scientific studies of this nature in Albania and the region. Using an Autoregressive Distribution Lag (ARDL) model and EViews 12 software, we analyze how carbon emissions relate to economic indicators such as the issuance of building permits, Gross Domestic Product (GDP), and energy consumption patterns. Our results show a positive relationship between construction activities and increased carbon emissions, signaling a development model that currently diverges from sustainable practices. This research is important as it not only fills a critical gap by quantifying the environmental footprint of the real estate sector in Albania but also provides strong signals to support policy makers in guiding sustainable development initiatives. This study recommends that future strategies integrate and harmonize economic growth with environmental care by targeting sustainability in construction techniques and renewable energy.