Course code EIE311

EIE311 Real Estate Development, Economic Analysis and Valuation

There may be changes to the course due to to corona restrictions. See Canvas and StudentWeb for info.

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Showing course contents for the educational year 2021 - 2022 .

Course responsible: Sølve Bærug
Teachers: Knut Boge
ECTS credits: 10
Faculty: Faculty of Landscape and Society
Teaching language: NO
(NO=norsk, EN=Engelsk)
Teaching exam periods:
This course starts in Autumn parallel. This course has teaching/evaluation in Autumn parallel
Course frequency: Annually
First time: 2011V
Preferential right:
None
Course contents:
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 environmental aspects
Learning activities:
Lectures: aprrox. 4 h total per week. Self study.
Teaching support:
Study platform https://nmbu.instructure.com/CanvasTimetable https://cloud.timeedit.net/nmbu/web/student/TimeEdit
Syllabus:
David M. Geltner, Norman G. Miller, Jim Clayton, Piet Eichholtz Commercial Real Estate Analysis and Investments (with CD-ROM)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 spreadsheetsBUS220 (Finance and Investment) or equivalent.

Recommended prerequisites:
Basic knowledge of real estate and property development. 
Mandatory activity:
Attendence at a number of guest lecturers' presentations, the number will be presented at the start of the course (usually 3) is required.
Assessment:
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.
Nominal workload:
Ca. 40 hours of lectures and common supervision. Ca. 210 hours of self study or study in groups.
Entrance requirements:
Minimum requirements for entrance to higher education in Norway (generell studiekompetanse).
Type of course:
Ca. 40 hours of lectures.
Examiner:
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.
Allowed examination aids: C3 Alle typer kalkulatorer, alle andre hjelpemidler - inkludert digitale
Examination details: Written exam: A - E / F