REMF45-Investment Appraisal and Valuation

Module Provider: Real Estate and Planning
Number of credits: 20 [10 ECTS credits]
Terms in which taught: Autumn term module
Non-modular pre-requisites:
Modules excluded:
Current from: 2023/4

Module Convenor: Dr Ren Ren

Type of module:

Summary module description:

This module develops the theory and practice of appraisal for individual property investments, mainly in the context of the commercial and industrial real estate investment markets. It will consider different bases of value, different approaches to appraisal, required returns, yields, how cash flows are generated and how property investment relates to other asset markets. 


To enable students to understand the financial, technical and market context of the appraisal of real?estate investments.?Students will be introduced to different concepts of value and how these relate to decision making in the property investment market. Students will apply basic financial and cash flow models to the appraisal of real estate investments, identifying the appropriate approaches for estimating Market Value and Investment Value as defined by International Valuation Standards. The information content of appraisals will also be?considered,?including?inputs such as rental values, capitalisation rates, rental growth rates and exit yields.? 

Assessable learning outcomes:

Upon completion of this module, students should be able to: 

  • Understand different concepts of value and their application to real estate.  

  • Apply mathematics of compounding and discounting to real estate investments. 

  • Evaluate the information needs of real estate investment appraisals. 

  • Construct and adapt spreadsheet templates to undertake cash flow appraisals. 

  • Understand the outcomes of appraisals and their role in decision making. 

Additional outcomes:

Students will develop their written communication and numerical skills. 

Outline content:

  • Concepts of price, value and worth; 

  • Financial mathematics: compounding, discounting, etc.; 

  • Target rates, growth rates and yields;

  • Information needs for real estate appraisal; 

  • Introduction to market valuation techniques;

  • Discounted cash flow modelling;

  • Introduction to risk analysis. 

Global context:

Both national and international examples are used during lectures, though with a focus on the UK commercial real estate market. 

Brief description of teaching and learning methods:

The module will comprise lectures and problem solving workshops, with an individual project for assessment of the taught material. The teaching will be supported by the use of online resources, including an online discussion board. Preparation for classes includes viewing 6 hours of video recordings. 

Contact hours:
  Autumn Spring Summer
Lectures 18
Tutorials 6
Guided independent study:      
    Wider reading (directed) 85
    Other 6
    Essay preparation 85
Total hours by term 200 0 0
Total hours for module 200

Summative Assessment Methods:
Method Percentage
Written assignment including essay 100

Summative assessment- Examinations:

Summative assessment- Coursework and in-class tests:

The module will be assessed through one major appraisal assignment. This will assess the ability of students to critically examine techniques and apply them to multi-occupancy commercial real estate investments. Word length of 3,500 plus calculations/appendices (equivalent to a 5,000 word essay). The project submission date will be in week 20 (first week of spring term). 

Formative assessment methods:

Tutorial and case study exercises.

Penalties for late submission:

The below information applies to students on taught programmes except those on Postgraduate Flexible programmes. Penalties for late submission, and the associated procedures, which apply to Postgraduate Flexible programmes are specified in the policy “Penalties for late submission for Postgraduate Flexible programmes”, which can be found here:
The Support Centres 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 (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:
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:

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: 30 March 2023


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