Main courses
Real Estate Valuation
This course covers the basic methods to value real estate objects. Real estate valuations are discussed from an investment perspective, based on theoretical fundamentals and practical expertise of the real estate business, as utilised in the European context and Anglo-Saxon countries. The focus lies on the typical finance-oriented (income) methods: The DC and DCF method, which are also used to study the financial attractiveness of investments. In particular, how and when can these methods be applied to value real estate? We discuss why appraisals are needed, which techniques are applicable in what circumstances, and how to get the information (parameters) necessary to do an appraisal. The DC and DCF methods are mainly used to value apartment complexes and office buildings. Students learn to use these methods through several practical case assignments and exercises. There is also a written exam.
In the follow-up on this course (Advanced Real Estate Valuation, 6314MNW02Y) some advanced valuation topics are presented such as: sales comparison/cost approach, land valuation, mass appraisal, portfolio appraisal, confirmation bias in valuation, hotel valuation, etc.
During the course students conduct casework (valuation assignments), concerning the appraisal of individual properties in practice. Real estate practitioners will give feedback on the valuations of the students and will present ‘applied theory’ lectures. The course is completed with a final exam.
After following this course, the student should have knowledge of the valuation process and the appraisal of real estate, and should be able to analyze appraisal reports and to conduct a financial analysis of individual properties.
Real Estate & Alternative Investments
This course focuses on real estate and alternative investments from a portfolio perspective. It provides and in-depth analysis of measuring real estate returns, how to construct real estate portfolio’s, the liquidity of listed and non-listed real estate investment and the pricing of real estate derivatives. Real estate portfolio theory is covered, including real estate investment management and international (foreign) real estate investment. Other asset classes like private equity (buyouts) and venture capital are also covered. Besides lectures, tutorials, to learn the mechanics behind portfolio allocation, a practical case assignment will help to put the different asset classes into a real-life perspective.
In short, the course will cover the following topics:
• real estate portfolio theory;
• data challenges in measuring returns;
• international real estate investments (REITs and derivatives);
• real estate liquidity and pricing;
• private equity (buyouts) and venture capital.
After following this course, the student should have knowledge about real estate investment and alternative investments from an international perspective, and should be able to analyze real estate investments using some of the standard and key methods.
Upon completing the course, students gain the following knowledge and skills:
• to evaluate and analyse real estate and alternative investments in a portfolio setup.
• an understanding of the scope and the potential diversification benefits of real estate investment and other alternative asset classes from an international perspective.
• to apply key methods (and identify key anomalies) regarding portfolio allocation that includes real estate.
• to apply the key real estate metrics and methods using a practical perspective.
• to critique and discuss how theoretical concepts are applied in pradtice by studying business cases on portfolio management.