Real Estate Management

2019-2020

Course Objective

After successfully completing this course you:
* Are able to create real estate appraisals (Academic Skills)
* Are able to analyse the behavior of institutional investors in real
estate (Academic Skills)
* Understand the functioning of residential and commercial real estate
markets and associated mortgage markets (Bridging Theory and Practice)
* Know how to apply the principles of real estate valuation.
(Professional and Social Skills)
* Understand the role real estate markets play in society. (Broadening
your Horizon)

Course Content

The course provides an introduction to the functioning and analysis of
real estate markets. Investments in real estate are studied at the
property level where attention is paid to lease contracts, mortgages and
taxes in the valuation. The various types of real estate investment
structures, including unlisted funds and REITS are considered. Real
estate strategies of private and institutional investors are discussed.
The secondary market for debt related to real estate financing is
analyzed with a focus on the various instruments (such as CDOs and CMOs)
that have played on important role in the recent financial crisis.
Finally, students also take the perspective of an (institutional)
investor, such as a pension fund, who considers real estate as one of
many available asset classes. Students will study the main
characteristics in terms of risk and returns of the different forms of
real estate available to the investor (such as investing in mortgage
pools, investing in buildings, securitised real estate, etc.), as well
as by property type (such as residential versus commercial real estate).

The course emphasizes the practice of real estate markets. Commercial
real estate receives most of the attention, but on top of that
households will be discussed as potential small investors in residential
real estate and some of the specific features of the Dutch housing
market will be discussed in class.
Real Estate Management is a joint effort of the departments of Spatial
Economics and Finance.
After following this course, students are able to understand:
* valuation and investment analysis at the property level;
* the main characteristics of the most popular types of mortgage
loans;
* mortgage underwriting and the implications of leveraging
* the impact of fiscal measures on real estate valuation;
• the role of the housing associations on the Dutch rental housing
market;
• the importance of the secondary market in mortgages, as well as
the available instruments for institutional investors such as pension
funds;
• the risk and returns characteristics of the main investments
vehicles in real estate available to an institution investor.

Teaching Methods

Lectures, including a guest lecture by a real estate specialist.
Tutorials.

Method of Assessment

Written examination. Duration 2 h and 45 min.
Open questions.
An assignment (group assessment) concerning the valuation of real
estate.

Literature

• Baum, A.E. & Hartzell, D. (2011). Global Property Investment:
Strategies, Structures, Decisions. Wiley-Blackwell, ISBN: 978-1-4443-
3528-6, Paperback, 576 pages;
• additional course material, mainly academic papers, that will be
provided on Canvas.

General Information

Course Code E_BA_REM
Credits 6 EC
Period P5
Course Level 400
Language of Tuition English
Faculty School of Business and Economics
Course Coordinator prof. dr. J. Rouwendal
Examiner prof. dr. J. Rouwendal
Teaching Staff prof. dr. J. Rouwendal
dr. F. Hamelink

Practical Information

You need to register for this course yourself

Last-minute registration is available for this course.

Teaching Methods Lecture, Study Group
Target audiences

This course is also available as: