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Description
This module covers the basic principles of financial economics in the context of real estate. It begins with a high level overview of a cash flow analysis. It then focuses to investment theory principles such as asset pricing and applications to real estate.
The second half will look at debt markets and real estate financing. The theoretical concepts are complemented with in-class exercises, automated spreadsheets workshops and group work.
Aims of the module:
The module aims to provide students with key concepts from investment and finance theory and relate those to real estate. The main goal is to teach students how to think critically when it comes to applying such concepts to real estate as an asset class, considering for example investment decisions in the real estate market as risk/return trade-offs. The module also has secondary goals that are based around developing skills required by the profession, such as use of Excel and working and analysing financial data.
Intended Learning Outcomes of the Module:
Remember: The key determinants of expected returns.
Understand: The mechanisms that affect the price of an asset.
Apply: principles of risk/return optimization to make investment decisions.
Analyse: the role of debt and financing in investment decisions such as investment value and discount rates.
Evaluate: an investment opportunity in the context of the core investment and finance theories.
Module deliveries for 2024/25 academic year
Last updated
This module description was last updated on 8th April 2024.
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