RE2REEI-Real Estate Economics and Investment

Module Provider: Real Estate and Planning
Number of credits: 20 [10 ECTS credits]
Level:5
Terms in which taught: Autumn / Spring term module
Pre-requisites: IC103 Introductory Economics for Business and Finance
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2019/0

Module Convenor: Prof Michael Ball

Email: m.ball@henley.reading.ac.uk

Type of module:

Summary module description:
This module is delivered at University of Reading and University of Reading Malaysia.

Aims:

The module aims to provide an insight into the application of economic and financial principles and models to property and land use, building on relevant material from Part 1, and to provide a solid basis for more specialised analytical work in Part 3. 

Assessable learning outcomes:

The module emphasises knowledge and understanding of the economic and investment principles underlying property markets. Upon completion of the module, students should be able to: 

 

• Discuss and explain the main economic concepts and models relating to the economics of cities, property and land; 

 

• Discuss and explain the economic principles underlying investment decision making; 

 

• Identify different concepts of market efficiency and principles of portfolio allocation and indicate their applicability in real estate markets; 

 

• Analyse the occupation, use of and investment in real estate assets using economic models; 

 

• Discuss and explain the principal determinants of the demand for, the supply of, and the location of commercial, industrial and residential property; 

 

• Identify the different adjustment mechanisms in each property sector. 

Additional outcomes:

The module will assist students in developing an overall awareness of economic conditions, spatial economic growth and macro-economic policy and their significance on business decisions and outcomes. The module will enhance students’ quantitative and analytical skills. 

Outline content:

The first theme develops an introductory understanding of urban economics trough the following topics: 

 

· Urban economic growth 

 

· Urban land use patterns 

 

· The roles played by factors such as transport costs, external economies & public policy 

 

· International developments in city growth 

The second theme develops a more specific analysis of commercial real estate markets discussing: 

 

· Demand for real estate 

 

· Supply of real estate 

 

· Rental and capital value adjustment processes 

 

· Real estate cycles 

The third theme develops principles of financial economics and discusses their applications to real estate investment: 

 

· Real estate investors & asset structures 

 

· Portfolio benefits of real estate investment 

 

· Investment strategies 

 

· Dynamics of the investment process 

The fourth theme develops an analysis of the housing market discussing 

 

· Factors affecting the demand and supply of residential space 

 

· Housing economic models 

 

· Further topics like tenure choice & change, housing finance, international differences, & market cycles 

Global context:

The theory applies to real estate markets in general and examples at an international scale are used throughout. 

Brief description of teaching and learning methods:

The module will be primarily lecture based with directed supplementary questions & reading and the use of Blackboard. The directed reading will consist both of academic material on the theoretical concepts/models relating to the lectures and material relating to contemporary market, economic and political conditions. Students are expected to work regularly on exercise sets and questions on directed readings and answers will be discussed during the lectures. 

Contact hours:

	Autumn	Spring	Summer
Lectures	20	20	2
Guided independent study:
Wider reading (independent)	20	20
Wider reading (directed)	36	36
Exam revision/preparation			26
Reflection	10	10
Total hours by term	86	86	28
Total hours for module	200

Summative Assessment Methods:

Method	Percentage
Written exam	100

Summative assessment- Examinations:
One three-hour examination.

Summative assessment- Coursework and in-class tests:

Formative assessment methods:

Penalties for late submission:
The Module Convener will apply the following penalties for work submitted late:

where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day[1] (or part thereof) following the deadline up to a total of five working days;

where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

The University policy statement on penalties for late submission can be found at: http://www.reading.ac.uk/web/FILES/qualitysupport/penaltiesforlatesubmission.pdf
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:
A mark of at least 40%.

Reassessment arrangements:
One three-hour examination.

Additional Costs (specified where applicable):

Last updated: 12 April 2019