module specification

This module will introduce you to real estate economics and valuation, and their relationship to the wider economy and property market. Upon completion of this module, you will understand the notions of supply and demand, the problem of the inelasticity of supply with real estate, and develop the ability to apply economic principles in your analysis of the property market and undertake basic valuations. Valuation is a specialist part of applied economics and is an essential foundation for aspiring Chartered Surveyors specialising in the Real Estate market.

This module will provide you with the fundamental knowledge necessary for decision making when advising on real estate development, investment, and valuation, both under RICS Global Standards (Red Book) and outside these standards. Robust and trustworthy valuations are essential for the efficient running of the economy, and financial lenders must have confidence in them.

The valuation section of this module primarily focusses on the valuation techniques used to assess the value of commercial real estate. You will apply your acquired knowledge to various situations, learning how to analyse scenarios, extract relevant facts, and make appropriate assumptions in order to complete your valuations. This will develop your critical analysis powers and numeracy skills.

The syllabus will cover the following key topics:

• 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, and employment (LO1, 2)
• Understanding economic data (LO1, 2)
• The economics of 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)

Study will be supported via lectures, seminars, workshops, and guided asynchronous activities. 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. You will receive formative feedback at regular intervals, which can be used to learn, improve your knowledge on key topics, and develop your academic writing skills. You will need to do independent and guided reading and research to support your learning, which will allow you to build a wider knowledge of economic theory and how it relates to the Built Environment.

Upon 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 then 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. demonstrate numeracy and IT skills, analyse and present data for the purpose of economic analysis and valuations

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