Oliver’s Story – CASE STUDY
Module Overview
Real estate (land and any structures on it) accounts for around half of global wealth. Over the last fifty years investment in real estate has grown massively. At the moment, the diverse activities associated with real estate (e.g. construction, building management, leasing, trading, fund management, finance) together make up a larger fraction of UK GDP than the manufacturing sector. Most recently, the growth of mortgage backed securities, listed real estate firms and the introduction of derivatives based on real estate indices made the industry even more complex. The 2008 Global Financial Crisis and the consequent global recession were directly triggered by the events in the American real estate market.
These dramatic events have highlighted the lack of understanding by many professionals of the linkages between the property market and the rest of the economy, which played an important role in the development of this crisis. Apart from this, millions of amateur property investors suffered from negative equity and loss of wealth due to their lack of knowledge of the property cycles and the naïve assumption of ever increasing property prices.
The Real Estate Economics module attempts to close this knowledge gap. It develops your ability to understand the functioning of the real estate market, to analyse the effects of various events on property prices and property yields, and to forecast future property trends. This module is consistent with the general programme philosophy since it offers a combination of sound academic knowledge of relevant economic and financial theory with a particular focus on their real life application. Special attention will be paid to the practical aspects of property investment. The module also seeks to develop key transferable skills for a successful career in the real estate sector and in other industries (e.g., analytical, data analysis and report writing skills).
Module Learning Outcomes
On successful completion of the module, students will be able to:
1 Demonstrate sound knowledge and understanding of concepts, theories and models related to the real estate market.
2 Analyse and critically review property market dynamics using verbal, mathematical and graphical methods.
3 Apply a variety of research methodologies and analytical techniques to practical business issues related to property investment, and develop essential practical skills such as how to evaluate, finance and manage property investment projects.
4 Feel confident and accept the challenge of carrying out an individual piece of business- oriented research with elements of originality.
