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: 2022/3

Module Convenor: Dr Carlo Corradini
Email: c.corradini@henley.reading.ac.uk

Type of module:

Summary module description:

This module is designed toÌýcover the Ìýbasics of the economics of land and property markets ÌýÌýto provide a foundation for economic commercial real estate analysis. The topics covered by this module include microeconomics of land use, demand and supply of real estate, and property cycles.

Aims:

The module aims to provide students with insights into the application of basic economic principles and models to understand how Ìýland and real estate markets work. TheÌýobjectiveÌýof the module isÌýto developÌýa comprehensive understanding of how land use is allocated within cities, equilibrium adjustment processes in demand and supply of real estate, dynamics of real estate markets ,and investment from a macroeconomic perspective.

Assessable learning outcomes:

Intended learning outcomes:Ìý

By the end of the module, students will be able to explainÌýtheÌýdemand and supply factors underlying land and real estate markets and apply them to understand Ìýhow they function in the real world.Ìý



Assessable learning outcomes:Ìý

Upon completion of thisÌýmodule,Ìýit is expected that the studentÌýshouldÌýbe able to:Ìý

• understand the forces underlying the determination of urban land use and critically evaluate bid-rent models;


• demonstrate a comprehensive understanding of the principal determinants of the demand for and the supply of commercial, industrial and residential property;


• develop a practical understanding of different concepts of market efficiency and evaluate their applicability in real estate markets;


• link macroeconomic conditions to real estate market trends (demand, supply, pricing), and apply a practical understanding of such relationships to changing economic and technological conditions globally.

Additional outcomes:

The module will help build awareness about dynamic conditions in global and local economies, as well as the role of governments and regulations, their impacts on actions of stakeholders in the industry and real estate market outcomes. It will develop students’ ability to use analytical reasoning andÌýcritical thinking while making business decisions in a rapidly changing and hyperconnected world. Students will be introduced to key performanceÌýmetrics:Ìýe.g.Ìýyields, cap rates, vacancy rates.

Outline content:

• Agglomeration economics, global networks of cities, urban challenges


• Determination of land use and land rents from Ricardo to Mills-Muth


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


• Macroeconomic linkages inÌýreal estate marketsÌý(non-residential and residential)Ìý


• Real estate data: rental yields, vacancy rates, construction pipeline, and other fundamentals and performance indicators (non-residential and residential).

Global context:

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

Brief description of teaching and learning methods:

The module willÌýbe comprised ofÌýlectures and seminars. The seminars will complement the lecture material, providingÌýstudents with the opportunity to build on concepts andÌýaÌýfurther understanding of the economics of real estate markets. Additionally, students will be expected, on an independent basis, to read prescribed articles and prepare for class interaction.Ìý

Summative assessment- Examinations:

The module will be assessed through aÌýformal 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.aspxÌý

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: 13 October 2022