Core Course
REC601 – Real Estate Economics and Market Analysis
Course Unit Code: REC601
Type Of Unit: Core Course
Level of Course Unit: Second cycle
Semester: First Semester
Number of ECTS Credits: 7.5
Mode of Delivery
Face to Face
Prerequisites
None
Course Objectives
The objective of this course is to provide students with a comprehensive understanding of the principles, theories and practices associated with real estate economics. The course will cover key topics, including significance of the real estate sector for the economy, relationship between real estate and the economic cycles, the microeconomics and macroeconomics of real estate, including: the real estate markets and their relation, demand, supply and the factors that affect them; the price, the rent and stock adjustment mechanisms, as well as the main principles and theories of urban and regional economics stressing upon the significance of location for real estate, economies of scale, agglomeration economies, etc. The overarching objective is to blend the real estate economics theory with practical applications, enabling students to assess the performance of the economy and critically evaluate the impacts on the real estate market.
Learning Outcomes
- Explore key principles, characteristics, theories, and practices of real estate economics.
- Evaluate the direct relationship between the overall economy and the real estate sector.
- Interpret the microeconomic and macroeconomic aspects of real estate markets
- Apply theoretical concepts to explain the operation of the real estate market
- Appraise the role of property stock in the market and its impact on the rent adjustment process.
- Demonstrate a comprehensive understanding of the key principles and theories of urban and regional economics focusing on the significance of location.
- Examine urban development and structure through the lenses of urbanization, agglomeration economies, and economies of scale.
- Compare and contrast housing economic performance within an international context
Course Content
Introduction to Real Estate Economics
Real Estate Microeconomics
Real Estate Macroeconomics
User, Capital and Development Markets of Real Estate
Real Estate Market Analysis
Urban and Regional Economics
Location Decisions
International Real Estate
Course Features
Planned learning activities and teaching methods
Lectures; in-class discussion and debates; in-class exercises; problem sets; teamwork; video case studies, team presentations, interactive online learning via Moodle (quizzes, assignments, forums)
Assessment methods and criteria
Participation (10%)
Final Assignment (80%)
Presentation (10%)
Readings
Lecture Slides
Chapters from Textbooks:
-
- Real Estate Principles: A value Approach 7th ed., David C.Ling, Wayene Archer, ISBN: 9781266284960, 2023
- Real Estate Economics, Enrie Jowsey, Palgrave and McMillan, 2011
- Urban Economics 9th edition, O Sullivan, ISBN: 9781260084498, 2018
- Modern Urban and Regional Economics, 2nd Edition, Phillip McCann, ISBN: 9780199582006, 2013
- The Routledge Handbook of Housing Economics, 1st edition, Edited by Kenneth Gibb, Chris Leishman, Alex Marsh, Geoffrey Meen, Rachel Ong ViforJ, Craig Watkins, ISBN 9780367347178, 2024
Required articles:
Articles & Journals:
1. Keogh, G. (1994), “Use and Investment Markets in British Real Estate”, Journal of Property Valuation and Investment, Vol. 12 No. 4, pp. 58-72
2. DiPasquale D. and W. C. Wheaton (1992), “The Markets for Real Estate Assets and Space: A Conceptual Framework”, Real Estate Economics, Vol. 20, No. 2, pp. 181-198
3. Mitchell, K. (2017) Business Cycles: External/internal Causes, Economic Implications and Consumer Misconceptions. Hauppauge, N.Y.: Nova Science Publishers, Inc (Economic Issues, Problems and Perspectives) – Chapter 1
4. Barras, R. (1994). Property and the economic cycle: Building cycles revisited. Journal of Property Research, 11(3), 183–19
Optional articles:
1. Bogin A., Doerner W., and W. Larson (2018). Local House Price Dynamics: New Indices and Stylized Facts, Real Estate Economics, 47(2), 365-398
2. Aalbers, M. B. (2019). Financial Geography II: Financial geographies of housing and real estate. Progress in Human Geography, 43(2), 376-387.
3. Carrasco-Gallego, José A. 2021. “Real Estate, Economic Stability and the New Macro-Financial Policies” Sustainability 13, no. 1: 236
4. Geltner D. (2015), Real Estate Price Indices and Price Dynamics: An Overview from an Investments Perspective, Annual Review of Financial Economics, Vol. 7, 615-633
5. Gabe J, Robinson S, Sanderford A. Willingness to pay for attributes of location efficiency. Journal of Real Estate Finance and Economics. 2022;65(3):384-418
6. Kavarnou, D., & Nanda, A. (2014). Which Attributes Influence the Housing Markets Across the Greek Islands? Journal of Real Estate Literature, 22(2), 233–260
7. Real Estate Economics, Enrie Jowsey, Palgrave and McMillan, 2011 – chapter 6
8. Marcato G, Nanda A. Asymmetric Patterns of Demand-Supply Mismatch in Real Estate. Journal of Real Estate Finance & Economics. 2022; 64(3):440-472
9. Baek I, Liu J, Noh S. Real estate uncertainty and financial conditions over the business cycle. International Review of Economics & Finance. 2024; 89, 656-675
10. Bates, L. and Santerre, R. (2016) ‘The Market Demand Characteristics Associated with Real Estate Services: Some Evidence from a Panel Data Set of MSAs’, Journal of Real Estate Finance & Economics, 53(1), pp. 77–89
11. Modern Urban and Regional Economics, 2nd Edition, Phillip McCann, ISBN: 9780199582006, 2013 – Topics 4-9
12. Pearson, T.D. (1991) ‘Location! Location! Location! What is location?’, Appraisal Journal, 59(1), p. 7
13. Wei, Y.D., Xiao, W. and Wu, Y. (2024) ‘Centring or suburbanization? Changing locations of producer services in Shanghai’, Environment & Planning A, p. 1
14. Qiuqin He, Yang Huang and Yiyang Han (2021) ‘The Impact of Industrial Agglomeration on Commercial Real Estate Prices: An Empirical Study of 74 Counties and Cities in Zhejiang Province’, International Journal of Intelligent Technologies & Applied Statistics, 14(4), pp. 221–241
15. Rosenthal, S.S. and Strange, W.C. (2020) ‘How Close Is Close? The Spatial Reach of Agglomeration Economies’, Journal of Economic Perspectives, 34(3), pp. 27–49
16. Liu, C.H., Rosenthal, S.S. and Strange, W.C. (2018) ‘The vertical city: Rent gradients, spatial structure, and agglomeration economies’, Journal of Urban Economics, 106, pp. 101–122
17. Zumpano, L.V., Elder, H.W. and Crellin, G.E. (1993) ‘The Market for Residential Real Estate Brokerage Services: Costs of Production and Economies of Scale’, Journal of Real Estate Finance & Economics, 6(3), pp. 237–250
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