Servizi per la didattica
PORTALE DELLA DIDATTICA

Real Estate evaluation

02OIBLU

A.A. 2019/20

Course Language

English

Course degree

1st degree and Bachelor-level of the Bologna process in Architecture - Torino

Course structure
Teaching Hours
Lezioni 64
Esercitazioni in aula 16
Teachers
Teacher Status SSD h.Les h.Ex h.Lab h.Tut Years teaching
D'Acci Luca Ricercatore a tempo det. L.240/10 art.24-B ICAR/22 60 0 0 0 2
Teaching assistant
Espandi

Context
SSD CFU Activities Area context
ICAR/22 8 B - Caratterizzanti Discipline estimative per l'architettura e l'urbanistica
2019/20
The course aims at providing the basic knowledge in the domain of real estate evaluation, including some notions in the context of microeconomics and mathematics of finance. In particular, the methods for appraising the market value of real estate properties are illustrated with reference both to the methodological background and to the analysis of case studies. Moreover, the course offers the fundamental principles for construction costs estimates and a general overview of the principal evaluation techniques in the field of environmental economics.
The course aims at providing the basic knowledge in the domain of evaluation focusing on real estate as well as links with urban and environmental factors. It will present some introductory basic notions about values, utility, cost-benefit, cost-effectiveness analysis, mathematics of finance, behavioral economics, complexity, spatial analysis, and their links with real estate valuation. Some methods for appraising the market value of real estate properties and urban areas are illustrated with reference both to the methodological background and case studies.
At the end of the course the students will be able to afford the following tasks: - to appraise the market value of real estate properties; - to analyze the construction costs with reference to the subsequent phases of the building process; - to evaluate the financial viability of a real estate operation.
At the end of the course the students will be able to afford the following tasks: - to appraise the market value of real estate properties; - to analyze the real estate value in relation to urban characteristics; - to link real estate value with the recent complexity paradigm and multidisciplinary; - to insert valuations in the sustainability and multidisciplinary framework; - to have a theoretical introductory knowledge about utility and choice theories
The course does not consider any pre-requisites but the students who passed the exam of calculus will be facilitated.
The course does not consider any pre-requisites but the students who passed the exam of calculus might be slightly facilitated.
The program of the course is articulated according to the following macro-themes: - Microeconomics; - General appraisal; - Real estate markets; - Property appraisal procedures; - Construction costs analysis; - Transformation value; - Cash-flow analysis; - Environmental economics; - European Valuation Standards.
The program of the course is articulated according to the following macro-themes (each of them with around the same weight, but with a flexibility according to students interests and performance) : - Valuations; - Values, Utility, Choices - General appraisal; - Real estate markets; - Property appraisal procedures; - Values and urban factors; - Real estate value and spatial analysis; - Complexity; - Environmental economics.
The frequency in every lecture is highly recommended also because the exercises and the final exams will be strictly based on the content of the lectures Sharp punctuality and attention in class
The frequency in every lecture is highly recommended also because the exercises and the final exams will be strictly based on the content of the lectures Sharp punctuality and attention in class
A number of exercises will be presented to the students concerning the resolution of relevant questions pertaining to the program of the course. Furthermore, the students are required to develop specific group works concerning the application of the evaluation techniques presented in the theoretical lectures. In particular, two assignments will be developed in the course: 1) Appraisal of the market value of a property and 2) Analysis of the economic convenience of a project. These works are mandatory and the results have to be submitted at the end of the course.
A number of workshops, individual/group presentations and exercises will regularly occur and evaluated, together with a final assignment, for the final exam mark. The course will rhythmically alternate theoretical lectures from the teacher and interactive discussions with students as well as students presentations of subjects voluntarily chosen or, if necessary, given.
The notes of the lectures are available on the ‘portale della didattica’ Further readings: Appraisal Institute (2015), “The Appraisal of Real Estate”, Appraisal Institute, Chicago. Manganelli B. (2015), “Real Estate Investing. Market Analysis, Valutation Techniques, and Risk Management”, Springer, Berlin. Samuelson P.A., Nordhaus W., McCallum J. (1988), “Economics”, McGraw Hill, Toronto.
Eventual papers, slides and notes on the lectures will be mentioned and discussed in class. Then please make sure to be present in any lecture and with sharp punctuality. Further readings are parts from the following books that will be mentioned at class: Archer W., Ling D.C. (2012). Real Estate Principles: A Value Approach. McGraw-Hill. Mooya M.M. (2016). Real Estate Valuation Theory: A Critical Appraisal. Springer. Ryan-Collins J., Lloyd T., Macfarlane L. (2017). Rethinking the Economics of Land and Housing. ZED, London. Bertaud A. (2018). Order without Design. How Markets Shape Cities. MIT, Cambrdige USA and London UK. Xiao Y. (2017). Urban Morphology and Housing Market. Springer. Layard R., Glaister S. (1999). Cost-Benefit Analysis. Cambridge University Press. Levin H.M., McEwan P.J. (2001). Cost-Effectiveness Analysis. Sage. Brooks N., Donaghy K., Knaap G. (Ed) (2012). The Oxford Handbook of Urban Economics and Planning. Oxford University Press. Brakman S., Garretsen H., van Marrewijk C. (2009). The New Introduction to Geographical Economics. Cambridge University Press.
Modalità di esame: prova scritta; prova orale facoltativa; elaborato grafico individuale; elaborato scritto individuale;
The exam consists in a written test (10 multiple response questions + 2 open questions + 1 exercise). The final mark will aggregate two marks: the mark of the written test (60% of importance) and the mark of the assignments (40% of importance). The oral exam is discretionary and it can increase or decrease the final mark of +/- 2 points.
Exam: written test; optional oral exam; individual graphic design project; individual essay;
Written: The exam consists of a closed book written test (30 multiple response questions) of 1 hour. You will have only a pen with you, nothing else (mobile, bag, jackets, pen-holder, other papers, notes, books, ...) Assignment: It is an individual assignment. Examples of it will be better discussed in class: it consists of an A1 poster plus an around 1000 word paper to be prepared whenever the student wishes, about a subject she prefers and to be sent to me by the 'portale della didattica' whenever is ready but by maximum 5 days before the written exam. Both the poster and the paper are open book and prepared at home. It will be evaluated the scientific content (literature review consisting of articles from academic journals, at least 5), the academic capacity of explaining/describing the subject, the critical capacity to underline pros and cons and to link different aspects. ** PLAGIARISM (https://www.ox.ac.uk/students/academic/guidance/skills/plagiarism?wssl=1) will imply the fail of the exam ** Exercises: There would be an individual exercise per month from October to December about the content of the lectures and the workshops. They can be done in class during the workshops and be completed/refined at home. Then sent to me by the 'portale della didattica' be the end of each month. The final mark: it will aggregate three marks: 1) the mark of the written test (60% of importance), 2) the mark of the final assignments (20% of importance: within which 0.6 for the paper and 0.4 for the poster), 3) the average mark of all the exercises/presentations during the course (20% of importance) Then if for example you get 27 for the written test, 18 for the poster, 21 for the paper, 30 for the exercise of October, 25 for the exercise of November, and 24 for the exercise of December your final grade will be: (27*0.6) + (21*0.6*0.2) + (18*0.4*0.2) + [0.2*((30+25+24)/3)] = 16.2+2.52+1.44+5.27≃ 25 Or if 27 for the written test but 15 for all the rest: 16.2+3+3≃ 22 If 15 for the written test but 27 for all the rest: 9+5.4+5.4≃20 etc... Oral (optional, under student's request): the oral exam (3 questions, around 20-25 minutes, closed book) is discretionary and it can increase or decrease the final mark. It will be mostly to test the IN DEPTH understanding of the concepts, applications, precise knowledge and critical thinking. Objectives the exam aims to test: The type of exam, both written and (for those wanting it) oral, is specifically structured in a way to avoid a "Television Quiz" learning typology. What will count is the understanding of the concepts rather than learning by heart. Specific questions' style to test the in depth conceptual understanding, the capacity to apply, analyse, evaluate and create will be asked and should be expressed. The exam wants to test also the academic-research perspective capacity, and the ability to link theory with practice, as well as to develop an across discipline mind set synergy in the thinking/learning process, as per the lecture's style of the course.


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