This thesis examines the impact of the formalisation process on recipient households in peri-urban areas of Albania, by employing a multi-dimensional framework, adapted from Frediani and Hansen (2015), which uses aspects of both the Capability Space and the Sustainable Livelihoods Framework. The main research question explores the impact of formalization on recipient households, while sub-questions delve into aspects such as tenure security, socio-economic characteristics, asset accumulation, and the influence of external factors on the benefits of formalization. It adopts a case-study approach, where different qualitative methods are used to study two cases in different cities in Albania, Kamëz and Durrës. A total of 36 recipient households were selected as participants, taking part in a qualitative door-to-door survey, where subsequently, five of which were part of semi-structured interviews. Alongside this, several experts and government officials were interviewed as well, to gain a better understanding of the issues and to assure the triangulation of the data. The data analysis utilized Excel for the survey data and ATLAS.ti for interview transcripts, employing both deductive and inductive coding techniques. The findings reveal that the obtaining of ownership certificates had limited overall impact on the access to livelihood assets amongst recipient households. While there were some enhancements in financial capital for a few participants, the changes were not present in the rest of the sample population. Moreover, for those few participants that observed any changes following formalisation, the possession of other assets and skills prior to the process, played a significant role in their ability to capitalise on the legal status of their properties. This thesis highlights the importance of considering multiple dimensions of well-being, and accounting for the local socio-economic contexts, to fully understand the impact of formalisation on recipient households. It emphasizes the need for further research into gentrification and formalisation, the need for longitudinal and comparative studies, as well as further academic research into policy measures that can address the broader socio-economic challenges concerning formalisation. Lastly, the findings can inform future initiatives aimed at promoting sustainable development and inclusive urbanisation in Albania and similar contexts.