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EIE311 Real Estate Development, Economic Analysis and Valuation

Credits (ECTS):10

Course responsible:Sølve Bærug

Campus / Online:Taught campus Ås

Teaching language:Norsk

Course frequency:Annually

Nominal workload:Ca. 40 hours of lectures and common supervision. Ca. 210 hours of self study or study in groups.

Teaching and exam period:This course starts in Autumn parallel. This course has teaching/evaluation in Autumn parallel

About this course

Introduction to DCF og NPV. Discount rates, Advanced micro-level valuation. Leverage and financing in practice. Real estate portefolios. Real options and land value. Leases and leasing strategy.

Learning outcome

Knowledge:

After completed course, the student should have knowledge on:

  • tax and duties on commercial real estate
  • characteristics of real estate leasing market
  • development cost estimates
  • commercial real estate profits
  • investment value of commercial real estate and development projects
  • the concepts of commercial real estate and real estate valuation
  • the norwegian and english terminology of commercial real estate and real estate valuation of commercial real estate
  • international valuation standards
  • basic urban economics
  • deep understanding of the risk and profits relation

Skills:

After completed course, the student should be able to:

  • perform advanced economic analysis of real estate development projects
  • perform advanced economic analysis in spreadsheets
  • calculate shifts by the 4Q model
  • efficiently search large information sets

General qualifications:

After completed course, the student

  • knows the current practice in the Norwegian real estate business
  • can extract relevant information from real estate business news
  • can reflect on the ethical aspects of real estate development
  • can reflect on the connection between economic estimates, real estate development and UN sustainable development goal 12
  • can reflect on the connection between economic estimates, real estate development and innovation
  • Learning activities
    Lectures: aprrox. 4 h total per week by university staff and guest lecturers. Self study. Study in colloquium is recommended.
  • Teaching support
  • Prerequisites
    • EIE310 (Property market and analysis),
    • BUS133 (Excel for Business) or equivalent knowledge of spreadsheets
    • BUS220 (Finance and Investment) or equivalent.
  • Recommended prerequisites
    Basic knowledge of real estate and property development.
  • Assessment method
    A written 3 hour exam, graded A-F. An open-book exam where every aid is allowed, including the students own pc. Communicating with externals is not allowed. The design is intended to emulate a work-like situation under time constraint, where information seach also is a possibility.

    Written exam Grading: Letter grades Permitted aids: C1 All types of calculators, other aids as specified
  • Examiner scheme
    An external examiner will participate in the evaluatioin of all of the exams. A conference between the cours responsible and the external examiner will be held.
  • Mandatory activity
    Resyme of guest lectures. Alternatively, attendence at a number of guest lecturers' presentations, the number will be presented at the start of the course (usually 3). Must be deemed "passed", but do not count towards the grading.
  • Teaching hours
    Ca. 40 hours of lectures.
  • Preferential right
    None
  • Admission requirements
    Minimum requirements for entrance to higher education in Norway (generell studiekompetanse).