RE2REEI-Real Estate Economics and Investment

Module Provider: Real Estate and Planning
Number of credits: 20 [10 ECTS credits]
Level:5
Terms in which taught: Autumn / Spring term module
Pre-requisites: IC103 Introductory Economics for Business and Finance
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2020/1

Email: m.ball@henley.reading.ac.uk

Type of module:

Summary module description:

This module is delivered at the ºÚ¹Ï³ÔÁÏÍø and ºÚ¹Ï³ÔÁÏÍø Malaysia.

Aims:

The module aims to provide an insight into the application of economic and financial principles and models to property and land use, building on relevant material from Part 1, and to provide a solid basis for more specialised analytical work in Part 3.Ìý

Assessable learning outcomes:

The module emphasises knowledge and understanding of the economic and investment principles underlying property markets. Upon completion of the module, students should be able to:Ìý

Ìý

• Discuss and explain the main economic concepts and models relating to the economics of cities, property and land;Ìý

• Discuss and explain the economic principles underlying investment decision making;Ìý

& bull; Identify different concepts of market efficiency and principles of portfolio allocation and indicate their applicability in real estate markets;Ìý

• Analyse the occupation, use of, and investment in real estate assets using economic models;Ìý

• Discuss and explain the principal determinants of the demand for, the supply of, and the location of commercial, industrial and residential property;Ìý

• Identify the different adjustment mechanisms in each property sector.Ìý

Additional outcomes:

The module will assist students in developing an overall awareness of economic conditions, spatial economic growth and macro-economic policy and their significance on business decisions and outcomes. The module will enhance students’ quantitative and analytical skills.Ìý

Outline content:

The first theme develops an introductory understanding of urban economics through the following topics:Ìý

• Urban economic growthÌý


• Urban land use patternsÌý


• The roles played by factors such as transport costs, external economies andÌýpublic policyÌý


• International developments in city growthÌý

The second theme develops a more specific analysis of commercial r eal estate markets discussing:Ìý

• Demand for real estateÌý


• Supply of real estateÌý


• Rental and capital value adjustment processesÌý


• Real estate cycles


• Information asymmetries and real estate professionsÌý

The third theme develops principles of financial economics and discusses their applications to real estate investment:Ìý

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• Real estate investors andÌýasset structuresÌý


• Portfolio benefits of real estate investmentÌý


• Investment strategiesÌý


• Dynamics of the investment processÌý

The fourth theme develops an analysis of the housing market, discussing:Ìý

• Factors affecting the demand and supply of residential spaceÌý


• Housing economic modelsÌý


• Further topics like tenure choice andÌýchange, housing finance, international differences, andÌýmarket cyclesÌý

Global context:

The theory applies to real estate markets in general and examples at an international scale are used throughout.Ìý

Brief description of teaching and learning methods:

The module will be primarily lecture based with directed supplementary questions andÌýreading and the use of Blackboard. The directed reading will consist both of academic material on the theoretical concepts/models relating to the lectures and material relating to contemporary market, economic and political conditions. Students are expected to work regularly on exercise sets and questions on directed readingÌýand answers will be discussed during the lectures.Ìý

Summative assessment- Examinations:
One three-hour examination.

Summative assessment- Coursework and in-class tests:

Formative assessment methods:

Penalties for late submission:

The Module Convenor will apply the following penalties for work submitted late, in accordance with the University policy.Ìý

• where the piece of work is submitted up to one calendar week after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for the 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;


• Ìý


• 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:Ìý

Ìý

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:
A mark of at least 40%.

Reassessment arrangements:

Reassessment will be by a three-hour examination, subject to variation by the Examination Board where appropriate

Additional Costs (specified where applicable):

Last updated: 4 April 2020