Dr. MUHAMMAD ALI SHAHZAD 03 03 Rapid urban transformation across the Balkan region has intensified the interaction between cities capital inflows and growth trajectories particularly through real estateled development strategies The purpose of this study is to examine how foreign direct investment FDI influences urban growth patterns by channeling capital into real estate markets and reshaping the spatial and economic structure of Balkan cities The study adopts a quantitative research design using panel data drawn from selected Balkan economies over the period 20052023 Secondary data sourced from international databases and national urban development reports are analyzed using panel regression and mediation techniques to assess the dynamic relationship between FDI inflows real estate investment and urban economic growth The findings reveal that FDI exerts a statistically significant and positive effect on urban growth with real estate investment functioning as a critical transmission mechanism Cities attracting sustained capital inflows experience accelerated infrastructure development rising property values and expanded construction activity which collectively contribute to short and mediumterm economic growth However the results also indicate uneven development outcomes highlighting emerging risks related to speculative investment and spatial inequality The originality of this study lies in its citylevel empirical focus on the Balkans a region that remains underexplored in urban economics and investment literature By integrating capital dynamics with real estatedriven urbanization the study offers a connected analytical framework linking global investment flows with local urban transformation The results provide valuable insights for policymakers urban planners and investors seeking to balance growth sustainability and inclusiveness in rapidly transforming Balkan cities Copyright (c) Journal of Science Engineering Technology and Management Science. All rights reserved 2026