Additional outcomes:
The module will assist students in developing an overall awareness of economic conditions and macro-economic policy and their significance on business decisions and outcomes. The module will enhance students' quantitative and analytic skills.

Outline content:
The module covers three distinct, but interrelated, areas. In the first, the lectures begin by outlining the important macro-economic relationships necessary to assess the impact of fiscal and monetary policy on the property markets, building on the economic concepts introduced in Part 1. Then the focus shifts to finance and investment in property markets. The structure of capital markets will be examined and the investment characteristics of real estate will be compared to those of other asset classes. Investment decision making processes will be considered at portfolio and individual asset level, examining interest rates, rates of return and the required reward for risk. The linkages between investment and financial decisions is also considered. Evidence from the capital markets concerning the market efficiency of property, relative to other asset classes will be analysed.

The second area examines the general principles underlying the economic analysis of property markets. This includes identifying the main characteristics of property markets (including institutional structure) and examining their implications for economic analysis. Economic models are outlined and used to analyse aspects of property market adjustment under a comparative static framework. The macro-level analysis in the first area is complemented here by the micro-level demand and supply analyses of the three principle sub-markets within the property market: the user, the investment and the development markets. The sub-markets establish the linkage between investment and occupational demand and the development and supply of space.

The third area applies the general economic concepts introduced above to analysing four major property sectors, office, retail, industrial and residential. For each, the determinants of supply and demand will be examined, and where appropriate, additional theories are outlined, for example, the search theory in explaining short-run rental adjustment in the office user market. Consideration is also given to the main factors influencing location, in particular, the implications for the spatial distribution of households and firms arising from the changing nature of occupational demand and the supply response. Because of the housing tenure distribution in the UK, the residential property market lectures concentrate on owner occupation.

Rather than focusing exclusively on the UK, the module will also draw on empirical results and examples from North America, Europe and the Pacific Rim. The emphasis will be on developed economies, although specific issues relating to emerging markets will be noted in some lectures.

Brief description of teaching and learning methods:
The module will be primarily lecture based with directed supplementary reading. For each of the three areas, there will be a number of tutorial/seminar sessions to aid students in developing more depth and in understanding the linkage between topics. The two pieces of coursework (one in the autumn term, one in the spring) will act to structure student learning and provide a progress check for both staff and students. The directed reading will consist both of academic material on the theoretical concepts/models relating to the lectures and material relating to contemporary market, economic and political conditions. The students will be encouraged to place the latter material within the theoretical framework provided by the model.

Contact hours:

Assessment:
Coursework:
Assessment is based on an individually written essay (1,500 words). Students have the possibility to select from a number of essay topics relating to the four sections of the module.
Relative percentage of coursework: 25%
Penalties for late submission: will be in accordance with the University policy.
Examinations: One three hour examination in Term 3
Requirements for a pass: 40% required for a pass
Reassessment arrangements: 100% examination. Re-examination for Part 2 modules takes place in August/September of the same year.

Last updated: 22 July 2008