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: 2018/9

Email: a.nanda@reading.ac.uk

Type of module:

Summary module description:

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 a comprehensive understanding of the dynamics of real estate markets from a macroeconomic perspective and introductory knowledge of real estate appraisal. The module prepares students for the study of more complex material in real estate investment and finance.

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 a comprehensive understanding of the dynamics of real estate markets from a macroeconomic perspective and 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:

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

- 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.

- understand 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 data modelling skills. It improves analytical reasoning and student ability to explain trends in the real estate market. The students will be introduced to key performance metrics: yields, cap rates, risk premia. 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

  
  


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


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


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


• Conceptual framework for modelling real estate market dynamics.


• Basic Cash flow models and components


• Real estate yields


• The risk premium


• Emerging topics in real estate investment.

Brief description of teaching and learning methods:

The module will comprise lectures and seminars. The seminars will complement the lecture material, provide students with the opportunity to build on technical concepts and further 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.

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: 31 July 2018