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:
Module version for: 2017/8

Module Convenor: Mr Bing Zhu

Email: b.zhu@henley.reading.ac.uk

Summary module description:

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 goal of the module is the comprehensive understanding of the dynamics of the leasing, investment and development markets from a macroeconomics perspective and essential knowledge of real estate appraisal and investment environment. The module prepares students for the study of more complex material in real estate investment and finance.  

 



 


Assessable learning outcomes:

By the end of the module it is expected that the student will be able to:



- understand the forces underlying demand and supply of real estate for occupation and investment purposes



- develop a thorough understanding of the data used in the three segments of the real estate market and critically interpret patterns in the data.



- establish aspects of the macroeconomy relevant to the real estate market



- link macroeconomic conditions to real estate market trends (demand, supply, pricing) and develop a practical understanding of such relationships.



- identify and evaluate factors underlying real estate performance.



- apply basic cash flow techniques to real estate valuation



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



- familiarise with contemporary key risk metrics used in real estate investment


Additional outcomes:

The module will aid students in developing their technical and spreadsheet skills. It improves analytical reasoning and student ability to explain trends in the real estate market. The student will be introduced into attribution analysis and develop good knowledge of key performance metrics: yields, cap rates, risk premia and IRRs. The student acquires thorough knowledge of fundamental and investment data and databases in real estate. The toolkit of this module gives students the background and experience necessary to fulfil the needs of contemporary real estate investment.


Outline content:


  • The leasing, investment and development markets

  • The macroeconomy

  • Dynamic adjustments of demand and supply and price determination.

  • Real estate data: fundamentals and performance indicators

  • Investment appraisal principles

  • Cash flow models and components

  • Real estate yields

  • The risk premium

  • Real estate risk metrics


Brief description of teaching and learning methods:

The module will comprise lectures and applied workshops. The workshops will complement will illustrate lecture material, provide students with the opportunity to elaborate on technical concepts and further their understanding of the real estate investment principles. Additionally, students will be expected, on an independent basis, to read prescribed articles and prepare for class interaction.


Contact hours:
  Autumn Spring Summer
Lectures 10
Seminars 5
Guided independent study 85
       
Total hours by term 100.00
       
Total hours for module 100.00

Summative Assessment Methods:
Method Percentage
Written exam 100

Other information on summative assessment:

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


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 



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

Length of examination:

Two hours


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.


Last updated: 23 June 2017

Letter 'IPO.MODCAT1STKT' - Generation started at 23/Jun/2017 09:49:25.94.

Things to do now