Balancing Growth and Sustainability: Real Estate Development in Albania and its Connection to Environmental Sustainability

This study investigates the link between Albania's carbon emissions and various economic factors from 1995 to 2022 to establish the effect of the country’s real estate sector on the environment. Using EViews 12, we assess potential linkages between carbon emission levels, total number of con-struction permits, Gross Domestic Product (GDP), and energy resources. The results indicate the direct relationship between construction permits, economic activities, and carbon emissions, meaning that the current development path does not support environmental sustainability. However, the assessment reveals certain trends to increase the usage of renewable energy accords that may dramatically decrease carbon levels. These results indicate Albanian policymakers' need to adopt regulations supporting sustainability in the real estate market. Promoting investment in renewable energy sources is imperative so far as the Albanian country context is concerned as it is an essential step towards enhancing environmental quality.