Based on the sample data of 30 provinces in China, a spatial Dubin model was established, and a spatial weight matrix was constructed from the dual perspectives of geographical location and spatial distribution of economic development, and the spatial location effect of regional real estate investment on economic growth was empirically analyzed. The results show that: (1) regional real estate investment activities have a positive driving effect on the economic growth of the region, and compared with other input factors, real estate investment has a stronger cross-regional spatial correlation; (2) due to the dual influence of geographical location factors and socio-economic characteristics, the spatial spillover effect of real estate investment has structural differences, and it exerts significant positive spillover effects among regions with more balanced economic development. It has a significant crowding effect on the economic growth of geographically adjacent areas but with very different levels of economic development. Therefore, in the formulation of future real estate market regulation policies, more reliance should be placed on the classification of economically adjacent regions rather than the classification of geographically adjacent regions. Narrowing the economic development gap between regions is fundamental to forming a long-term mechanism for the healthy and stable development of the real estate market and enhancing the endogenous growth momentum of the economy.