module specification

The module aims to develop your critical awareness of the process of development within the built environment. It will require you to produce an appraisal of a proposed development site, providing advice to your client regarding the proposals.  You will need to consider the variables which could impact on the success of the development and provide reasoned advice on things such as the legal position, financing options, sustainability of the development and an assessment of the risks present. 

This module explores the development process in detail, including site identification and acquisition, assessing the development potential of the site, calculating the development profit of differing scenarios, looking at different funding models, arriving at a market value of the development considering current and anticipated market conditions and planning conditions. A valuation of the development will be undertaken following best practice which is to use 2 recognised methods to allow for cross checking of the outcomes.

The development process is a creative one and you will have the opportunity to consider and explore a variety of options when appraising the development potential of a site.  Factors you will need to consider include things such as permissible land uses, allowable density of development, site topography and other development factors such as social value, availability of services, infrastructure and ground conditions.  Client objectives will also need to be accommodated and these could include timescales, environmental and sustainability goals, cashflow, phasing of developments and target profits or yields.

The syllabus is informed by contemporary research and practice in the process of development, finance, and risk. Topics will include:

• Drivers for development (LO1)
• Client types and their requirements (LO1,2,3)
• Development appraisal and risk (LO1,2)
• Development and Investment risk (LO1,2)
• The development lifecycle (LO1)
• Development decision making in a legal, planning, investment, social value, environmental, and sustainability context (LO2,4)
• Development valuations – market comparison approach and the residual method (LO2)
• Financial management of projects LO3)
• Preparing and presenting financial reports on the project performance (LO3)
• Property tech - AI and machine learning – automated valuation models (LO2)

A blended/ technology enhanced learning approach will be employed in the delivery of this module. Student’s teaching and learning will consist of weekly classes comprising a combination of lectures, seminars, discursive sessions, and workshops. Students will be given the opportunity to engage in seminar activities in which the use of case studies from around the world stimulates discussion and helps them to develop a deep understanding of the development process in context. Workshops will facilitate group study of authentic case studies, presenting development scenarios and challenging the students to consider the advantages and risks associated with various development sites. The case studies will be diverse in development type and seminars and workshops will include exploring how different factors influence development appraisals. Where appropriate, activities will be captured and made available to allow asynchronous access.

Study will be supported via online lectures, tutorials and seminars that will be captured and made available to allow asynchronous access.

The learning and teaching in classes will be supported by the University’s VLE and a blended learning approach, sharing class materials, recommended reading, and case studies. Group tutorials will also be offered to support students in the preparation of their assessments, with opportunities for students to receive forward feedback.

You will reflect on your learning which will contribute towards your online Professional Development Journal (PDJ).

On completion of the module the learner, operating independently and applying their knowledge and skills, should be able to:

1. Advise upon development proposals including considering the legal, financial, and social contexts present
2. Undertake a development appraisal and provide client cost advice for a development project 
3. Demonstrate knowledge and understanding of the financial management of development projects
4. Explain and quantify the impact of building design decisions on the capital and whole life costs of buildings and their sustainability
5. Communicate complex proposals in a range of professional outputs.

There is no single text currently in publication that provides a comprehensive coverage of all aspects of this module. There are several books which cover various parts of the module in some detail, and these are listed in the core text list.

Core:-

Isaac, D., O’Leary, J. and Daley, M. (2016) Property Development: Appraisal and Finance. 3rd edn. London: Palgrave.

Reed, R. (2021) Property Development. Abingdon: Routledge.

Additional Reading:

RICS Guidance note - Valuation of Development Property 1st ed 2019
RICS Valuation - Global Standards (‘Red Book Global Standards’)
RICS Red Book UK National Supplement