Selected topics in real estate valuation and investments

Students must get acquainted with:
• knowledge of the mechanisms of price formation in different market forms;
• knowledge of the property market and the construction market, their forms, their actors;
• knowledge of data analysis and basic knowledge of descriptive statistics;
• knowledge of financial mathematics, time value of money, cash flow valuation;
• knowledge of the main methods for price and income valuations;
• knowledge of the use of real estate investment techniques;
• knowledge of cash flow analyis and risk analysis

No specific prerequisites are required.

h1. 1. Economics
1.1. Introduction to economics: prices, demand, supply.
1.2. Consumer behaviour: consumer choice, demand and price elasticity.
1.3. Supply behaviour: function and production costs.
1.4 Market forms.
1.5. The real estate market
1.6. The construction market.

h1. 2. Real estate Valuation and prices
2.1. Market value.
2.2. The Market Comparison Approach (MCA).
2.3. Financial mathematics.
2.4. Time value of money.
2.5. Discount rate and interest rate.
2.6. Valuing cash flow.
2.7. Estimating present value and future value.
2.8. Annuities.
2.9. Sinking funds.
2.10. Mortages and amortisation.
2.11. Income approaches.
2.12. Hedonic prices.
2.13. The cost of construction and refurbishment.

h1. 3. Real estate investment decision techniques
3.1. The capital budgeting process.
3.2. The residual analysis.
3.3. Pay back periods.
3.4. Return on investments.
3.5. Net present value.
3.6. Internal rate of return.
3.7. Risk analysis.
3.8. The life cycle cost.
3.9. Cost-benefit analysis.
3.10. Discounted cash flow analysis.

The course is providing students with the main skills as the following:
• analyze the market according to supply and demand in order to prepare and organise projects reflecting user needs and the competitive framework;
• understand prices formation and market forms;
• use property valuation and cost planning;
• include the architectural project within the complex economic relations of the real estate market and the construction sector;
• value the built environment with particular reference to the financing of real estate projects, both public and private;
• use the most important real estate investment techniques.

• Baum Andrew, (2015), Real Estate Investment, 3 edition, Routledge.
• Baum Andrew, Hartzel, (2012), Global Property Investment: Strategies, Structures and Decision, Wiley – Blackwell. E-version
• Graham Squires, Erwin Heurkens, (2014), International Approaches to Real Estate Development, Routledge.
• Greer G.E., Kolbe P.T. (2009), Investment Analysis for Real Estate Decisions, Kaplan AEC Education. E-version
• Havard T. (2008), Contemporary Property Development, RIBA Publishing. E-version
• Havard T. (2013), Financial Feasibility Studies for Property Development: Theory and Practice, Taylor & Francis.
• Myers D. (2011) Economics & Property, Elsevier/EG Books. E-version
• Myers D. (2012) Construction economics: A New Approach, Taylor & Francis. E-version
• Peter Dent, Michael Patrick, Xu Ye, (2013), Real Estate Property Markets and Sustainable Behaviour, Routledge E-version
• Reed R., Sims S. (2014), Property Development, Taylor & Francis. E-version
• Stephen F. Fanning, (2014) Market Analysis for Real Estate (2 edition), Appraisal Institute. E-version
• Brown G., Matysiak G. (2000), Real Estate Investment, A Capital Market Approach, Prentice – Hall. E-version

During the course students prepare individual projects of Discounted cash flow analysis of an real estate investment All projects are prepared in a written form and can be defend orally in an open discussion with professor and students. 50/50

Laura Gabrielli graduated with honors in Architecture from IUAV University of Venice and earned her PhD in Evaluation and Territorial Economics from the University of Padua. She has been an Associate Professor of Estimation and Valuation since November 2023, after holding the same position at IUAV University of Venice (2018-2023) and working as a Researcher at the Department of Architecture of the University of Ferrara (2008-2018). Since November 2024, she has been the Coordinator of the Industrial Product Design Program and the Delegate for Research Internationalization at the Department.
Throughout her career, she has taught at several Italian and international academic institutions, including the Politecnico di Milano, the University of Trento, the University of Bologna, the University of Alicante, University of Nova Gorica, and Universiteti Polis in Albania. Since 2021, she has been a lecturer in the “Real Estate Marketing and Advisoring” module of the “Real Estate & Finance” Master’s program at Luiss Business School.
Her research addresses internationally relevant topics such as real estate market analysis, real estate investment valuation, risk analysis, and the energy efficiency of architectural heritage, particularly historical buildings. She has participated in European and national research projects, especially on the evaluation of investments in innovative technologies for nearly zero-energy buildings (NZeb). Between 2018 and 2023, she was the scientific head of the Vault Study Center (Value Activators in Urban Landscape and Territory), part of the IR.IDE Research Infrastructure at IUAV University of Venice.
Laura is a member of the editorial boards of several Scopus-indexed academic journals, including the Journal of Property Investment and Finance, the Journal of European Real Estate, the Journal of Real Estate Literature, and the Journal of Real Estate Practice and Education. She is also an Associate Editor of the journal Valori e Valutazioni, Teorie ed Esperienze (Cluster: Real Estate Economics) and has curated numerous special issues on real estate investments, real estate economics, and sustainable technologies. Gabrielli serves as a reviewer for international journals in the fields of real estate valuation, real estate economics, energy retrofitting, and environmental sustainability.
She has received awards for academic publications and conference presentations, including The Appraisal Journal Prize, and recognitions as a reviewer from the Emerald Literati Club in 2013, 2016, 2019, and 2021. Laura is a member of the Board of Directors of ERES (European Real Estate Society) and, as a representative of ERES, is also part of the Board of Directors of IRES (International Real Estate Society).

More info on publiicatioins on:
https://docente.unife.it/laura.gabrielli/pubblicazioni