REMF58-Introduction to Real Estate Economics and Investment

Module Provider: Real Estate and Planning
Number of credits: 10 [5 ECTS credits]
Level:7
Terms in which taught: Autumn term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2020/1

Email: m.mori2@henley.ac.uk

Type of module:

Summary module description:

This module is designed to provide an introduction to economic, market, and investment analyses, which are important fundamentals for commercial real estate investment analysis. The topics covered by this module include demand and supply of real estate, fundamentals of real estate market research, and basic cash flow techniques for real estate investment valuation.

Aims:

The module aims to provide students with the necessary background to the economic analysis and investment principles of real estate markets. It presents students with a range of economic and investment concepts that are pertinent to real estate finance and investment. ?The objective of the module is to develop a comprehensive understanding of the dynamics of real estate markets from a macroeconomic perspective, as well as an introductory knowledge of real estate appraisal. The module prepares students for the study of more complex material in real estate investment and finance. 

Assessable learning outcomes:

Intended learning outcomes: 

By the end of the module, students will be able to explain the demand and supply factors important to understanding the dynamics of real estate markets and use this understanding for real estate investment analysis. It is also expected that students will have a solid quantitative and modelling foundation necessary to conduct real estate investment and financial analyses. 

Assessable learning outcomes: 

Upon completion of this module, it is expected that the student should be able to: 

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  understand the forces underlying demand and supply of real estate; 

  
  


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  link macroeconomic conditions to real estate market trends (demand, supply, pricing), and develop a practical understanding of such relationships; < /p>
  



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  understand basic cash flow techniques for real estate valuation; 

  
  


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  understand the risk premium, expected cash flows, the discount rate and other components in the appraisal process. 

  
  

Additional outcomes:

The module will aid students in developing their technical and data modelling skills. It improves analytical reasoning and their ability to explain trends in real estate markets. Students will be introduced to key performance metrics: e.g. yields, cap rates, risk premiums. The toolkit of this module gives students the background and experience necessary to fulfil the needs of contemporary real estate investment. 

Outline content:

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  Leasing, investment and development markets 

  
  

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  Dynamic adjustments of demand and supply and price determination (non-residential and residential) 

  
  


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  The macroeconomic linkages in real estate markets (non-residential and residential) 

  
  


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  Real estate data: fundamentals and performance indicators (non-resident ial and residential) 

  
  


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  Conceptual framework for modelling real estate market dynamics

  
  


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  Basic cash flow models and components 

  
  

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  Real estate yields 

  
  


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  The risk premium 

  
  


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  Emerging topics in real estate investment

  
  

Global context:

The literature and datasets that are referred to throughout the module provide a mixture of UK and international examples. 

Brief description of teaching and learning methods:

The module will be comprised of lectures and seminars. The seminars will complement the lecture material, providing students with the opportunity to build on technical concepts and a further understanding of real estate investment principles. Additionally, students will be expected, on an independent basis, to read prescribed articles and prepare for class interaction. 

Summative assessment- Examinations:

The module will be assessed through a two-hour formal examination.

Summative assessment- Coursework and in-class tests:

Formative assessment methods:

Informal feedback will be accessible via workshops/seminars where key theoretical and empirical concepts will be applied and tested.

Penalties for late submission:

Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx 

Assessment requirements for a pass:

The pass-mark for this module is 50%.

Reassessment arrangements:

Reassessment will be by the same method as for the module's original assessment requirements, subject to variation by the Examination Board where appropriate.

Additional Costs (specified where applicable):

Last updated: 4 April 2020