Aim
The objective of the course is to work with the legal concept of real estate. The course is to primarily give students the economic knowledge and skills necessary with respect to development and other modifications to real estate. The course also gives preparation for the subsequent term of studies.

Knowledge and understanding
For a passing grade the student must

• Explain fundamental theories, models and concepts within real estate economy's different moments, particularly microeconomics, macroeconomics, law and economy, accounting and the valuation of real estate;

• Explain different fundamental methods for the valuation of real estate and a real estate tax value;

• Orientate oneself in private and official price statistics; and

• Describe the interplay between the community's economy and the real estate market, on a regional as well as national level.

Skills and abilities
For a passing grade the student must

• Choose and use appropriate economic models in order to solve given problems of a real estate economic nature;

• Analyze and describe the real estate market and its interplay with other factors in society;

• Valuate different types of real estate with the help of the most common methods for real estate valuation;

• Describe and discuss orally and in writing the procedures for valuations and development of real estate objects of different types;

• Search and evaluate information as to the value of different pieces of real estates; and

• Interpret yearly financial accounts in a real estate company.

Judgement and approach
For a passing grade the student must

• Evaluate the usefulness of general economic theory as to the unique object real estate constitutes;

• Understand the market economic solutions to the problems that arise in the communal building process; and

• Search and evaluate materials for further studies.

Contents
The basis for the subject real estate economy is macro-economic price theory for a market economy with a particular focus on the specific limitations of the real estate market. This is the basis for this course in real estate economy. As many real estate properties have different characteristics that distinguish them from other types of goods and services, particular attention is given to the prerequisites necessary for the market to function effectively. The valuation of real estate is another central component in the course. The valuation of real estate is the application of general macroeconomic value and price theories. In addition, certain moments are included in the course based on business administration, primarily accounting and the analysis of yearly financial accounts. Each teaching moment consists of lectures and assignments, and also of project work in which the course's theoretical moments, as well as knolwedge from previous courses in the education, will be integrated and applied. The course begins with general macroeconomic theory as well as specific demand functions and cost principles and price formation under different conditions. Approximately half way through the course, corporate accounting, year end and balance sheet analyses with particular focus on the valuation of real estate and credit in the real estate market as well as different investment methods will be examined. The final third part of the course is focused on a more pure real estate economy moment including general studies of the real estate market and its principles, as well as real estate property as a financial object, price formation in rental and real estate markets as well as the tax value of real estate and taxation. Included in this part is a study and comparison of objects in the real estate market, this market's financial and tax assumptions as well as fundamental construction technique. A central part consists of the valuation of real estate properties that has its emphasis on valuation theories and there, in particular, the area price method but also the yield method.

Literature
Eklund, Vår ekonomi; Arvidsson m.fl., Den nya affärsredovisningen; Fastighetsvärdering with bilaga (LMW och Mäklarsamfundet); Nick French and Peter Byrne, Concepts and models of value (from European Valuation Practice); Whipple, Property Valuation and Analysis, chap. 3; Övningskompendium i nationalekonomi; Övningskompendium i fastighetsekonomi; Compendium of articles on building techniques(Byggnadsfysik LTH, Lund) and other articles.

Code: 0103. Name: Sub-course 1.
Higher education credits: 13,5. Grading scale: UG. Assessment: Individual examination at the end of the course. Contents: The course deals with the items mentioned above. An important part of it will be project works.

Code: 0203. Name: Sub-course 2 - Project.
Higher education credits: 13,5. Grading scale: UG. Assessment: Approved project works. Final mark based on the results of the written exam and the project works. Contents: The course deals with the items mentioned above. An important part of it will be 3 project works.