Course syllabus

Course-PM (Preliminary)

 ACE125 Real estate economics study period 1, HT21 (7.5 hp)

Course is offered by the department of Architecture and Civil Engineering

Teachers

Examiner: Martine Buser, Associate Professor, Chalmers

Martin Öberg, Senior lecturer PhD, School of Business, Economics and Law, Göteborg, martin.oberg@handels.gu.se 

Kim Jacobsen, PhD, Consultant K-Jacobsen A/S, kj@k-jacobsen.dk

Antoine Manes, PhD student Btech Aarhus University, manes@btech.au.dk

Stig Westerdahl, Professor, Malmö University

Hans Lind, Professor, Emeritus KTH

Birgitta Vitestam, Senior lecturer PhD, Malmö university

 

Course assistant / communicator: Oliver Disney, Chalmers oliver.disney@chalmers.se (contact person for general questions)

Course purpose

Not only is most of the built environment in Sweden consisting of existing buildings. These building also are valuated at enormous financial sums. Designing and building real estate as well as managing it is an important part of the overall building process. And the economics of real estate set important frames for design and buiding. Thus, understanding the dynamics and mechanisms in real estate economics is an important competence for the critical and skilled design and construction project management scholar.
The purpose of this course is to develop understanding and knowledge about basic concepts and tools within real estate economics and to position this competence within the design and construction project management scholarship through critical and interdisciplinary perspectives.

Schedule

Times are Tuesday 09.00-11.45 and Friday 09.00-11.45 unless stated otherwise in the schedule below.

Attendance online and onsite at Chalmers will be recorded, a minimum attendance of 80%+ is required, in addition to the obligatory (O) sessions.

TimeEdit Schedule

Day	Topic	Lecturer / Location
31 August Tuesday (O) 08.00-10.45	Introduction to real estate finance, fundamentals and its role in construction management. Group formation	Martin Öberg Martine Buser Antoine Manes SB-L400
03 September Friday	Real estate evaluation Introduction assignment 1	Martin Öberg SB-L400
09 September Thursday 13.15-16.00 The seminar will be recorded and available online	Critical approaches, symbolic value. Social construction of economy.	Martine Buser SB-L200
10 September Friday	Real estate finance, investors and stakeholders	Rikard Ljunggren (fastighetsägarna), Guest lecturer Martin Öberg SB-L400
14 September Tuesday	Real estate investment analysis	Stig Westerdahl, Guest lecturer Online on Zoom
17 September Friday	Public housing in Sweden	Hans Lind, Guest lecturer Online on Zoom
20 September Monday Deadline 17.00	Hand-in of Assignment 1 – real estate tools and approaches
21 September Tuesday	Residential buildings in Sweden	Martin Öberg SB-L400
24 September Friday	Real estate – digitalization, tools and means	Antoine Manes Kim Jacobsen SB-L400
28 September Tuesday (O)	Presentation assignment 1	MÖ, AM, KJ Group's scheduled time slot SB-L400
01 October Friday	Commercial Buildings in Sweden Assignment 2 introduction	Martin Öberg SB-L400
05 October Tuesday	Property – patterns of practices and decision making	Birgitta Vitestam, Guest lecturer Online on Zoom
05 October Tuesday  13.15-16.00 The seminar will be recorded and available online	The role of sustainability in real estate	Martine Buser SB-H3
11 or 13 October Monday/Wednesday	Supervision assignment 2	MÖ, AM, KJ, OD Book a time with your supervisor (online/onsite)
15 October Friday	Group work
19 October Tuesday Deadline 17.00	Hand in final assignment 2
22 October Friday (O) 09.00-16.00	Presentation final assignment 2 and opposition ALLDAY	MÖ, AM, KJ, OD SB-L400/SB-H3

Course literature

9th September

Berg P.O. and Kreiner K. (1990): Corporate Architecture. Turning Physical Settings into Symbolic Resources. In Gagliardi, P. (Ed.), Symbols and artifacts. views of the Corporate Landscape. Berlin: de Gruyter Pp. 41-67.

Callon M and Muniesa F (2005): Economic Markets as Calculative Collective Devices. Organisation Studies. 26(8): 1229–1250.

10th September

Lekander J. (2017) How do institutional pension managers consider real estate: A perspective from Sweden and Finland, Journal of Property Investment & Finance, Vol. 35 Issue: 1, pp.26-43

14th September

Öhman, P.; Söderberg, B.; Westerdahl, S. (2013): Property investor behaviour: qualitative analysis of a very large transaction. Journal of Property Investment & Finance, Vol. 31 Issue 6, p522-544, 23p. 

17th September

Lind H (2012): Pricing principles and incentives for energy efficiency investments in multi-family rental housing: The case of Sweden. Energy Policy, Vol.49, p.528.

5th October

Vitestam-Blomqvist B.(2014) My home and my economy- a theoretical approach to the use of accounting and valuation when purchasing a cooperative flat. Conference Edinburgh.

Course design

Organisation

The course includes lectures, seminars, exercises, and assignments. Guest lecturers provide insights in theoretical concepts, case-based project work may include visits to real estate companies.

Learning objectives and syllabus

Learning objectives:

The general aim of the course is to provide a fundamental understanding of real estate finance and economics and management.

After completion of the course, she student shall be able to;

Knowledge and understanding
A.  Understand basic mechanisms in the real estate market 
B.  Understanding of managerial perspectives in real estate markets
C.  Use basic concepts of real estate economics and financing of real estate
D.  Use a range of tools and theoretical, conceptual approaches to real estate economics

Competence and Skills 
E.  Apply tools for calculation of valuation and profitability of real estate investments

Judgement and approach 
F.  Evaluate and critically reflect upon academic literature within the field of profitability of real estate investments

Link to the syllabus on Studieportalen.

Study plan

Examination form

Examination according to learning outcome goals by two assignments:
Assignment 1, a group work, literature seminar 35%. 
Assignment 2, a group note on case study 50%.
Assignment 1 and 2 involves handing in a written note and obligatory presentation day
Participation in obligatory course elements and minimum attendance 15%

The grading follows the Chalmers standard: Pass with distinction (5), Pass with credit (4), Pass (3), Fail.