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Description
This module covers the theoretical principles of economics in the context of real estate. It begins with explaining the basic concepts of economics such as supply and demand, elasticity, substitution and utility. It also covers productivity of firms, people and locations and considers optimisation problems of firms and households.
The second part of the module applies these concepts to real estate. It begins with principles of urban economics including agglomeration, density and returns to scale in cities. It then examines location choices of firms and households. Finally, it reviews theories and empirical evidence of real estate cycles.
Students will be provided with:
- basic understanding of how economists think about cities and real estate
- how to represent decisions in the real estate market as an optimization problem
- define prices as the outcome of complex supply and demand interactions
At the end of the module, students will be able to:
- Remember: that real estate prices are driven by firms optimizing profits and households optimizing utility under constraints. 听
- Understand: how firms and households make location choices. 听
- Apply: principles of microeconomics to determine prices for real assets.听
- Analyse: the impact different determinants of supply and demand have on prices. 听
- Evaluate: changes in market conditions on supply, demand and prices of real assets.
Module deliveries for 2024/25 academic year
Last updated
This module description was last updated on 8th April 2024.
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