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.

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.

The course does not consider any pre-requisites but the students who passed the exam of calculus will be 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.

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.

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.

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.