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Course

EIE311 Real Estate Development, Economic Analysis and Valuation

Credits (ECTS):10

Course responsible:Sølve Bærug

Campus / Online:Taught campus Ås

Teaching language:Norsk

Limits of class size:None

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
  • Syllabus
    • David M. Geltner, Norman G. Miller, Jim Clayton, Piet Eichholtz Commercial Real Estate Analysis and Investments
    • Other course material: Overview of course material and curriculum will be handed out at the start of the semester.
  • 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, nor is use of AI. The screen is monitored during the exam. The design is intended to emulate a work-like situation under time constraint, where information seach also is a possibility.

    Written exam Karakterregel: Letter grades Hjelpemiddel: C1 All types of calculators, other aids as specified
  • About use of AI
  • Examiner scheme
    An external examiner participates in the external evaluation of the examination and grading system.
  • 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).
  • Teaching hours
    Ca. 40 hours of lectures.
  • Preferential right
    None
  • Admission requirements
    Minimum requirements for entrance to higher education in Norway (generell studiekompetanse).