module specification

This module introduces property economics and valuation and their relationship to the wider economy and property market. Upon completion of this module, students will have the ability to apply economic principles to analyse activities in the property market and undertake basic valuations.
Knowledge and understanding of economics for real estate professionals is essential. This module provides you with the foundational knowledge necessary for developing valuation, investment, and development skills, which are explored in other modules at various levels of study. You will be introduced to fundamental economic principles while exploring the impact of market forces and economic indicators in the context of the built environment, with contemporary events serving to illustrate the influence of economics on construction and real estate. Additionally, the module focuses on developing students' data literacy by teaching you how to interpret economic data presented in various forms.

Valuation is also a fundamental skill for real estate professionals, forming the cornerstone of financial decisions, investment and development advice, taxation, dispute resolution, and various statutory applications. Robust valuations are essential, and specialist valuers work across a range of public and private asset types, with commercial, residential, and rural properties among the most common asset classes. The valuation section of the module primarily focuses on the valuation techniques used to assess the value of commercial property within the built environment, introducing students to different valuation methods and outlining the circumstances in which each is appropriate. Students will have opportunities to apply this knowledge in various situations, improving their numeracy skills. You will be introduced to the role of the Royal Institution of Chartered Surveyors (RICS) in establishing valuation standards and learn how these standards impact real estate professionals working worldwide.

• Microeconomics and Macroeconomics (LO1)
• Theory of supply and demand (LO1)
• Study of production, distribution and consumption of goods and services. (LO1)
• Role of government (LO1)
• Growth, inflation, interest rates, employment (LO1, 2)
• Understanding economic data (LO1,2)
• The economics of the construction and real estate markets (LO2)
• The economics of climate change (LO1,2)
• Introduction methods of valuation and their applications in context (LO3)
• Compounding, discounting and the time value of money (LO3)
• Basic valuation formulae (LO3)
• Professional guidance and standards (LO4,5)
• Property measurement and international property measurement standards (IPMS) (LO5)
• Writing a valuation report (LO4)
• Interpretation of data in charts, tables and other forms  (LO6)
• Identifying, validating and using credible sources of data (LO6)

In your lectures you will be introduced to general economic theory and valuation practice including in the context of real estate and the built environment.  You will examine some of the contemporary economic issues at local, national and global scales. 

Study will be supported via lectures, seminars, workshops, and guided asynchronous activities. Where appropriate, activities, will be captured and made available to allow asynchronous access. The value of this blended approach is that you will be able to continue to explore topics beyond the classroom and interact with your cohort to expand on discussions and debates. Economics and valuation can initially be a challenging subject for real estate students and therefore focusing on student understanding in smaller group work is essential and of benefit.

You will receive formative feedback at regular intervals.  Formative means that the feedback will not go towards your final mark for the module, but you will be able to use the feedback to learn, improve your knowledge of key topics and to develop your academic writing skills. Students will be given the opportunity to self-assess their learning by use of formative quizzes, in class and asynchronously via Weblearn.

You will be asked to do independent and guided reading and research to support your learning, this will help you to build a wider knowledge of economic theory and how it relates to the built environment and how it will affect you as a real estate professional.

On completion of the module the learner, operating independently and applying their knowledge and skills, should be able to:
1. Explain the key ideas and principles of economic theory including microeconomics and macroeconomics.
2. Interpret economic data and relate it to real estate and the built environment.
3. Understand the purpose and methods of simple valuation and the drivers which impact the value of property.
4. Appreciate the relevant professional guidance and standards which apply to valuations and the implications of not following such guidance.
5. Recognise international standards of measurement, the conventions used and their application.
6. Demonstrating numeracy and IT skills, analyse and present data for the purpose of economic analysis and valuations.

There is no single text currently in publication that provides a comprehensive coverage of all aspects of this module. There are several books, publications and

Core:
Bank of England Learn about the economy. Available at: https://www.bankofengland.co.uk/explainers/learn-about-the-economy
https://www.bankofengland.co.uk/education/education-resources
BBC (2022/3) Understand: The Economy. https://www.bbc.co.uk/programmes/m001dwr7/episodes/downloads
Begg, D., Vernascu, G., Dornbush, R. and Fischer, S. (2020) Economics. 12th edn. London: McGraw Hill.
Myers, D. (2022) Construction Economics: a new approach. 5th edn. Abingdon: Routledge.
Scarrett, D. and Osborn, S. (2014) Property valuation the five methods. 3rd edn. Abingdon: Routledge.
Wilcox, J. and Forsyth, J. (2022) Real estate: The basics. Abingdon: Routledge.
RICS Valuation Standards
RICS Rules of Conduct
Basic Tasks in Excel