In this course the focus is on financial topics related to investing in real estate from the professional investors perspective. The course combines theoretical topics and empirical methods with the actual practices of real estate professionals. Some of the topics included in this course are: real estate in the mixed-asset portfolio; real estate performance measurement, real estate equity securitization, and mortgage-backed securities. The primary objective of the course is to acquire the knowledge and develop analytical skills for jobs in real estate development, brokerage, mortgage banking and investment banking industries.
Melissa Porras Prado
DiPasquale, D., W.C. Wheaton. 1992. The Markets for Real Estate Assets and Space: A Conceptual Framework. Journal of American Real Estate and Urban Economics Association. V20, 1 pp. 181-197
Hudson-Wilson et al. 2005. Why Real Estate? Journal of Portfolio Management 31(5). 12-21
Case, K.E., J.M. Quigley and R.J. Shiller. 2005. Comparing Wealth Effects: The Stock Market versus the Housing Market. Advances in Macroeconomics. Vol 5 (1)
McAllister, P., A. Baum, N. Crosby, P. Gallimore and A. Gray. 2003. Appraiser behavior and appraisal smoothing: some qualitative and quantitative evidence, Journal of Property Research 20(3). 261-80
Case. B, H.O. Pollakowski and S.M. Wachter. 1991. On Choosing Among House Price Index Methodologies. Real Estate Economics 19(3). 286-307
Geltner, D. 1993. Estimating Market Values from Appraised values without Assuming an Efficient Market. Journal of Real Estate Research 12(2). 325-45
Stevenson, S. 2000. International Real Estate Diversification: Empirical Tests using Hedged Indices. Journal of Real Estate Research 19(1). 105-31
Giliberto, 1993, Measuring Real Estate Returns: The Hedged REIT Index, Journal of Portfolio Management.
Brounen, D., S. de Koning. 2012. 50 Years of Real Estate Investment Trusts: An International Examination of the Rise and Performance of REITs. Journal of Real Estate Literature 20, 2, 197-222.
Pagliairi, J.L., K.A. Scherer, R.T. Monopoli. 2003. Public versus Private Real Estate Equities. Journal of Portfolio Management, 101-11
Pagliairi, J.L., K.A. Scherer, R.T. Monopoli. Public Versus Private Real Estate Equities: A More Refined, Long-Term Comparison. Real Estate Economics; Spring 2005; 33, 1
Barkham, R.J. and C.W.R. Ward. 1999. Investor Sentiment and Noise Traders: Discount to Net Asset Value in listed Property Companies in the U.K., Journal of Real Estate Research 18(2), 291-312
There will be three reports due, which are to be done in groups. The final results of the reports will be presented by each group in class. Students will also need to review academic articles and prepare an individual literature review.
Final exam 60% (compulsory);
Group assignment 25%;
In-class presentations 15%.
1. Real Estate Performance and Valuation
2. Real Estate Securitization
3. Real Estate Portfolio Management
4. Real Estate Derivatives
6. Debt Securitization
7. Subprime Crises
Programs where the course is taught: