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)

 

 Welcome to ACE126 !

Dear students,

Welcome to  Market and value in real estate! The course starts on Tuesday September 2nd  at 09.00.

We are looking forward to meeting you.

 

Contact details

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

Marli Swanepoel, PhD marlis@chalmers.se

Guests

Rikard Ljunggren Fastighetsägarna

Lars Olausson, D’Office architect

Andrea Hulting Gustafson, Stadsbyggnadskontoret, Göteborg

Sjouke Beemsterboer, ACE

Paul Göransson, Urbanivation

 

Course purpose

The built environment in Sweden consists not only of physical entities but also serves as financial assets, with the real estate market playing a significant role in the national economy. Understanding the dynamics and mechanisms that define values in real estate is, therefore, a critical competence for design and construction project management students. This course encourages them to consider real estate from multiple dimensions, recognizing that a building's value is shaped not only by economic factors but also by its social, cultural, and environmental impacts. By adopting this holistic perspective, the student should be better equipped to navigate the complexities of modern real estate markets, where sustainable and community-focused developments are increasingly prioritized.

 

 Schedule 

		Date		Content		Teachers
	1		2 September  Tuesday 09.00-11.45 SB3- L111		Introduction to real estate finance fundamentals and their role in construction management. Group formation + assignments	Martin Öberg  Martine Buser
	2		02 September Tuesday 13.15-16.00 TP-L21 TeknikP.		Figures and facts 1 recap	Johan Åkesson (GU)
	3		05 September Friday 09.00-11.45 SB3- L111		Value creating factors, Commercial Buildings in Sweden	Martin Öberg (GU)
	4		09 September Tuesday 09.00-11.45 SB3- L111		Public housing in Sweden Will be given online	Hans Lind (KTH)
	5		12 September Friday 09.00-11.45 SB3- L111		Real estate finance Investors and stakeholders	Martin Öberg Guest: Rikard Ljunggren Fastighetsägarna
	6		12 September Friday 13.15-16.00 TP-L12 TeknikP		Figures and facts 2 afternoon	Johan Åkesson
			Between 15-17 September		Meeting your supervisors, free to book your supervision 1
	7		16 September Tuesday 09.00-11.45 SB3- L111		Architects and value	Greta Faxberg, Martine Buser Guest: Lars Olausson D’Office architect
	8		19 September Friday 09.00-11.45 SB3- L111		The mesmerising maze of measurable and immeasurable values that forms a city	Greta  Faxberg Guest: - Andrea Hulting Gustafson, Stadsbyggnadskontoret
	9		23 September Tuesday 08.00-11.45 SB3- L111		Presentation assignment 1	Elton, Greta, Marli, Martine
	10		26 September  Friday 09.00-11.45 SB3- L111		History and power in the city	Greta Faxberg
	11		30 September Tuesday 09.00-11.45 SB3- L111		Value, commodity, and commodification of urban space	Elton Chan
	12		30 September  Tuesday 13.15-16.00 SB3- L111		Seminar Mandatory To read ·       Öhman, P.; Söderberg, B.; Westerdahl, S. (2013. PDF To watch : ·       Pusch,  Fredrik Gertten, 2019 ·       Complement : Push movie - Leilane Farha TEDx talks	Martine Buser EC, GF, MB, MS Last hour
			01-05/10 agree date with your supervisor		Supervision 2	EC, GF, MS, MB
	13		03 October Friday 09.00-11.45 SB3- L111		Calculating “new value” : Certification, LCA and taxonomy	Martine Buser Sjouke Beemsterboer
	14		07 October Tuesday 09.00-11.45 SB3- L111		Critical approaches, the social construction of market	Martine Buser
	15		07 October Tuesday 13.15-16.00 SBM022		The value creation and city planning	Guest Paul Göransson Urbanivation
	16		14 October Tuesday 09.00-15.00 Hammarkullen		Social sustainability, value and real estate	Emilio Brandão
			Between 13-17 /10		Book supervision 3	EC, GF, MS, MB
	17		17 October Friday 09.00-11.45 SB3- L111		Practices of valuation:  Commissioning Peer review	Martine Guest : Alexander Karlsson Skanska
	18		Wednesday 22/10 08.00-17.00 SB3-L300		Mandatory Presentations Class divided into 2 sessions	EC, GF, MS, MB
			Final delivery 01/11

 

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

• Understand the economic role of real estate and explain the role of buildings as financial assets, their significance in the national economy, and the dynamics of real estate markets.
• Describe and apply tools and methodologies for the calculation of valuation and profitability of real estate investments.
• Analyse and assess the economic, social, cultural, and environmental factors that shape the value of real estate in Sweden and globally.
• Critically evaluate and synthesize academic literature and professional sources to understand the interplay between value-related theory and real estate practice.
• Identify and analyse the perspectives of various stakeholders in real estate markets and navigate the tensions arising from differing views on values.
• Demonstrate an understanding of sustainable and ethical practices in real estate management and propose strategies that balance market demands with community needs.
• Demonstrate teamwork, collaboration, and leadership skills in managing real estate projects and addressing contemporary challenges in the industry.

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:

• Theories, tools and methods in real estate market management
• Theories on the notions of values
• Theories on urban developments

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

• Real estate finance, investors and stakeholders
• Real estate evaluation and investment analysis
• Public housing in Sweden
• Residential and Commercial Buildings in Sweden
• Sustainability, circularity and standards in real estate
• Urban development and the role of buildings in the city

The course provides an in-depth exploration of real estate markets, equipping participants with a comprehensive understanding of their dynamics and mechanisms. It strongly emphasizes research methodologies relevant to this theoretical field, enabling participants to apply these tools effectively to address diverse real estate challenges. Additionally, the course fosters self-awareness by offering valuable insights into participants' decision-making behaviors, enhancing their ability to navigate complex scenarios in the real estate sector.

 

Organisation

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

The course is organised around lectures, two group assignments, one mandatory seminar, supervision sessions, case studies, and study visits. Lectures introduce fundamental concepts of real estate finance, value creation, and investor perspectives, while also addressing the Swedish context of commercial buildings, public housing, and urban development. The two group assignments focus on existing dilemmas and tensions in real estate and construction, supported by supervision meetings and culminating in presentations and a peer review. A compulsory seminar, based on selected readings, a documentary (Push), and a TEDx talk, provides a platform for critical discussion. Study visit and contact with practitioners further connect academic perspectives with professional practice.

Assignment 1
In groups, visit three open houses in the same area. For each property, observe and document how value is communicated through the apartment’s features, the building’s design and condition, and the surrounding neighbourhood. Pay attention to how the homes are staged, marketed, and priced, and reflect on how physical, social, and spatial factors influence their appeal. Your group will present your findings and submit supporting documentation. 

Assignment 2 
In this group assignment, you will explore how different and sometimes conflicting ideas of value shape real estate development. Together, choose a topic where tensions such as profit vs. sustainability or densification vs. community well-being, arise. Formulate a clear problem statement, review literature, compare theories of value, and apply them to a real-world case study. Analyze how different stakeholders define and prioritize value, and how these differences lead to dilemmas or trade-offs. Conclude with reflections and practical recommendations. Your group will deliver a written report and a presentation for assessment.

 

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. jangehl_urbandesign_article-1.pdf

Hospers, G. J. (2006). Jane Jacobs: her life and work. European Planning Studies, 14(6), 723–732. Jane Jacobs her life and work.pdfDownload 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 the main drivers of their own learning by participating in the courses and committing to their group work.  Active participation in seminars, lectures, exercises, and workshops can affect the final grading. 

Examination according to learning outcome goals consists of :

• Seminar 10%
• Assignment 1 30%
• Assignment 2 on one issue related to the definition of values or market bridging multiple theories and practices 60%

Minimum attendance is requested for 70% of the class 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 a 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

The course examiner may assess individual students in other ways than what is stated above if there are special reasons for doing so, for example if a student has a decision from Chalmers on educational support due to disability.

 

Instructions on using generative AI tools (like ChatGPT)

ACE126 follows the general stance of Chalmers’ Executive committee for education, which is that bachelor's and master's education should reflect a real working situation within the professional field as much as possible, including access to AI tools. However, it is not always appropriate to use them, and when they are used, it is a prerequisite that AI tools are employed in a responsible and transparent manner. In this page, you can find instructions and implications on using AI for your course work: https://www.chalmers.se/en/education/your-studies/masters-and-bachelors-thesis/regulations-for-the-use-of-ai-tools/Links to an external site.. The page refers to working on theses, but the same principles apply to your regular coursework and assignments

 The course syllabus contains changes

The students' feedback of the 2023/24 sessions have led to the following changes:

• There is a new version of assignment 1
• Less emphasis has been given to architectural features 
• The schedule for the assignments has been updated to balance the workload during the course
• New participants are joining the course 
• The present syllabus has been updated accordingly and may differ from the version on the studentportale.

2024-05-06: BlockBlock D+ added by Schemagruppen