Course syllabus

Course-PM

ACE126 ACE126 Market and value in real estate lp2 HT24 (7.5 hp)

Preliminary schedule

Course-PM

lp1 HT22 (7.5 hp)

Course is offered by the department of Architecture and Civil Engineering

 

Examiner: 

Martine Buser, (MB) Associate Professor, Chalmers, buser@chalmers.se

Lecturers:

Elton Chan, post-doc, ACE, Chalmers, elton.chan@chalmers.se

Emílio Brandão,  teacher, ACE, Chalmers

Greta Faxberg, research assistant, ACE, Chalmers, faxberg@chalmers.se

Hans Lind, professor Emeritus KTH

Johan Åkesson, lecturer Department of Business Administration  GU, johan.akesson@handels.gu.se

Kaj Granath, associate professor, ACE Chalmers

Martin Öberg, senior lecturer, Department of Business Administration Gothenburg, martin.oberg@handels.gu.se

Martine Buser, associate professor, Chalmers

 

+ guests from the practice 

 

Course specific prerequisites

To be eligible for the course you have to meet the entry requirements for the Design and construction project management (DCPM) master programme and (alt. a) have completed the compulsory courses for DPCM or (alt. b) have passed 30 hp in other master level courses in Architecture or Civil Engineering. For programme specific entrance requirements, see programme syllabus.

 

Course purpose

The built environment in Sweden is not only consisting of physical entities, but buildings are also valued as financial assets and the real estate market constitutes an important part of the national economy. Thus, understanding the dynamics and mechanisms of defining value in real estate and the context within which this valuation takes place is an important competence for design and construction project management students.

The aim of the course is to facilitate students’ understanding and knowledge about the practices and theory of values within real estate and the development of cities and to position this competence within design and construction project management scholarship through critical and interdisciplinary perspectives.

 

Schedule

	Day	Topic	Lecturer
1	3 September  Tuesday 09.00-11.45 SB L400	Introduction to real estate finance fundamentals and their role in construction management. Group formation	Martin Öberg (MÖ) Martine Buser
2	03 September Tuesday 13.15-16.00 SB-H4	Figures and facts 1 recap	Johan Åkesson
3	06 September Friday 09.00-11.45 SB L400	Value creating factors, Commercial Buildings in Sweden	Martin Öberg
4	10 September Tusday 09.00-11.45 SB-M415	Public housing in Sweden Will be given online	Hans Lind
5	13 September Friday 09.00-11.45 SB L400	Real estate finance Investors and stakeholders	Martin Öberg Guest: Rikard Ljunggren Fastighetsägarna
6	13 September Friday SB-M022  13.15-16.00	Figures and facts 2 afternoon	Johan Åkesson
7	17 September Tuesday 09.00-11.45 SB L400	Architects and value Workshop guideline	Kaj Granath Martine Buser Guests Charlotte Erdegard, Erdegard arkitekter Jonas Hermansson, Liljewall architect
8	20 September Friday 09.00-11.45 SB-l400	Göteborg stad, title to be announced	Greta  Faxberg Guest: - Andrea Hulting Gustafson, Stadsbyggnadskontoret
9	24 September Tuesday 09.00-11.45 SB -L400	Value, commodity, and commodification of urban space	Elton Chan
10	25 September Wednesday 09.00-11.45 SB-H5	Seminar Mandatory To read ·       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. PDF To watch : ·       Pusch,  Fredrik Gertten, 2019 ·       Complement : Push movie - Leilane Farha TEDx talks	Martine Buser
11	27 September  Friday 09.00-11.45 SB L400	History and power in the city	Greta Faxberg
12	1 October Tuesday 09.00-11.45 SB L400	Critical approaches, the social construction of market	Martine Buser
	01-05/10 agree date with your supervisor	Supervision 1	MÖ, EC, GF, MB
13	4 October Friday 09.00-11.45 SB L400	Calculating  “new value” : Certification and taxonomy	Martine Buser
14	8 October Tuesday 09.00-11.45 SB L400	The value creation and city planning	Guest Paul Göransson Urbanivation
15	08 October afternoon 13.15-17.00. SB-H3	Buildings  workshop Mandatory Delivery date for the report Friday 11.10 at 17.00	Kaj Granath Greta Faxberg Martine Buser
16	15 October Tuesday 09.00-15.00 Hammarkullen	Social sustainability, value and real estate	Emilio Brandão
	Between 15-18 /10	Book supervision 2nd	MÖ, EC, GF, MB
17	18 October Friday 09.00-11.45 SB-L400	Practices of valuation Peer review	Martine Guest  Ellen Brandt Chalmersfastigheter
18	Wednesday 23/10 08.00-17.00 SB3-L111	Mandatory Presentations Class divided into 2 sessions	EC, GF, MB
	Final delivery 01/11

 

                  Content

The course is rooted in theories and practices developed within the realm of real estate economics and investments. Within this perspective, the course will present and discuss different perspectives on real estate economy. Cornerstones in the course will be:

• Cognitively-based decision-making by different stakeholders' perspectives like architecture, planning, economy and investments and management.
• Theories, tools and methods in real estate market management decisions
• Process related issues in decision-making and management when to develop real estate property

This above, many times inter-disciplinary, parts of the course represent different approaches to understand development and management of real estate markets. The following topics are covered 

• Real estate finance, investors and stakeholders
• Real estate evaluation
• Real estate investment analysis
• Public housing in Sweden
• Residential and Commercial Buildings in Sweden
• Sustainability, circularity and value in real estate

The course deepens the participants knowledge of real estate markets in general. It further emphasizes the methods as means to research within this theoretical field. This knowledge is useful for different real estate problems. It also gives the participant an insight into his or her decision-making behaviour.

Learning outcomes (after completion of the course the student should be able to)

• Describe and understand the basic mechanisms in the real estate markets
• Describe and understand tools for calculation of valuation and profitability of real estate investments
• Describe and understand managerial perspectives in real estate markets
• Describe and understand the different stakeholders’ perspectives on value and the tensions created by these differences
• Describe and understand the roles of buildings in the city
• Define, describe, review and interrelate core theories on the notion of value in relation to buildings
• Evaluate and critically reflect upon academic literature within the field of value and profitability of real estate investments
• Synthesize and apply information from various sources in order to acquire a coherent understanding of how values related theory and professional practice interrelate
• Demonstrate an understanding of contemporary opportunities and challenges for real estate in the context of sustainable development.
• Develop a sustainable and ethical awareness for the management of real estate
• Demonstrate an understanding of, and the ability to apply, the principles of teamwork, collaboration and leadership

Changes made since the last edition of the course

The course is being substantively developed with a new structure, new content, and new lecturers. Besides, the assignments and grading have also been revised. This may explain a certain discrepancy between the formal course description and the actual syllabus.

Organisation

The course includes lectures, seminars, exercises, and assignments. Guest lecturers provide insights from different stakeholders.

Literature

Material distributed during the course will include book chapters, scientific articles and practitioners’ material.

Below is a selection of the references

Bellman, L., & Lind, H. (2019). Valuation standards and methods: are Sweden’s (still) different?. Journal of European Real Estate Research, 12(1), 79-96.

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.

Floricel, S., & Brunet, M. (2023). Grandstanding? The elusive process of shaping megaproject symbolism. International Journal of Project Management, 41(5), 102498.

Gehl, J., Kaefer, L. J., & Reigstad, S. (2006). Close encounters with buildings. Urban design international, 11, 29-47.

Hospers, G. J. (2006). Jane Jacobs: her life and work. European Planning Studies, 14(6), 723–732. Jane Jacobs her life and work.pdf

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

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.

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.

Scarrett, D., & Osborn, S. (2014). Property valuation: The five methods. Routledge.

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.

Westerdahl, S. (2021). Yield and the city: Swedish public housing and the political significance of changed accounting practices. Critical Perspectives on Accounting, 80, 102161.

Examination including compulsory elements

The students are expected to be main drivers of their own learning by participating to the courses and commit to their group work.  Active participation in seminars, lectures, exercises and workshops can affect the final grading. 

Examination according to learning outcome goals:

• Literature seminar 10%
• “Building” case study and presentation workshop 40%
• Final assignment on one issue related to the definition of values or market bridging multiple theories and practices for 50%.

Minimum attendance is requested for 70% of the class sessions (11 out of 16 sessions).

Absence from one or several of the compulsory seminars or presentation sessions can be substituted with alternative assignments. The decision to approve that such compensatory procedure may be used is made by the responsible teacher on an individual basis. Some course content will only be given at the time presented in the schedule.

Grades are distributed as follows:

Grade	Point range
5	85-100
4	70-84
3	55-69
Fail	< 55