Course is closed
Lead Instructor(s)
Date(s)
Jun 18 - 19, 2020
Location
On Campus
Course Length
2 Days
Course Fee
$3,200
CEUs
1.2
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THIS COURSE MAY BE TAKEN INDIVIDUALLY OR AS PART OF THE PROFESSIONAL CERTIFICATE PROGRAM IN REAL ESTATE FINANCE & DEVELOPMENT

The Global Real Estate Markets course will provide enrollees with a global comparative view of real estate investment fundamentals. We will cover the main drivers of real estate values across countries and their forecast. Attendees will learn to underwrite real estate prices by studying the key determinants of construction costs and the value of land and location. From the macroeconomic perspective, attendees to this class will obtain an understanding of how changes in financial markets, international capital inflows, the local cost of capital, and changes in trade deficit or surplus affect current and future real estate markets. 

Special attention will be devoted to provide the skills needed to distinguish between short-term speculative fluctuations in real estate and actual or expected changes in asset valuation that are driven by fundamentals. We will analyze the micro-economic determinants of real estate value and rental yields and current global trends in real estate demand and valuation.

We will also examine the key institutional differences between markets that matter for valuation, investment, and policy purposes. Some countries have more developed and transparent investable markets, but there are opportunities in less conventional approaches. We will review some of the strategies taken by successful global operators in order to minimize currency, credit, and operational risks.

We will finally turn our attention to skills required to successfully build a global real estate portfolio. We will analyze the international returns and covariances of asset and asset-backed financial derivatives, and develop portfolio-optimizing strategies. We will also cover the universe of global Real Estate Investment Trust and Mortgage Backed Security markets.

This course has been approved for 16 CPD credits toward renewal of the CoreNet Global MCR designation.

Participant Takeaways

  • Learn the fundamentals of valuation in international real estate investment
  • Identify key institutional features relevant for global real estate investors
  • Learn how to understand and minimize global real estate risks
  • Identify international investment opportunities
  • Acquire portfolio investment skills in global real estate products

Who Should Attend

This course is applicable to a wide range of professionals across the real estate, banking, finance/investment, and insurance industries. Specifically, the course may be of interest to fund managers, investment portfolio managers, financial advisors, investment bankers, fixed-income analysts, financial risk managers, global financial market specialists, and professionals working in macroeconomic policy. More generally, this class can be valuable to anyone dealing with global financial markets and real estate investments.

Requirements

Laptops or tablets are required as course materials will be distributed electronically.

Program Outline

This course runs 9:00 am – 4:30 pm on the first day and 9:00 am – 4:00 pm on the second day. On the first day registration and breakfast will be 8:00 am – 9:00 am. Please note that the schedule is subject to change.

Day One:

8:00 am - 9:00 am: Registration / breakfast

9:00 am - 10:30 am: Review the relative pricing in global markets, land values and construction costs, and what are determinants of regional construction costs

10:30 am - 10:45 am: Break

10:45 am - noon: Study the impact of foreign capitals on local real estate markets, rental yields: determinants, macroeconomic conditions and real estate pricing

Noon - 1:00 pm: Lunch Break

1:00 pm - 2:30 pm: Review Commodities trade and real estate prices, as well as look at forecasting of real estate values in a country / region

2:30 pm - 2:45 pm: Break

2:45 pm - 4:30 pm: Commercial Real Estate Products: Characteristics and differences across countries, as well as look at residential real estate: characteristics and differences across the markets

5:30 pm - 7:30 pm: Professional Certificate Program Graduation Reception and Ceremony

Day Two:

9:00 am - 10:30 am: Look at leverage in real estate investments: Macroeconomic determinants, also look at the comparative financial markets: depth and regulatory environment

10:30 am - 10:45 am: Break

10:45 am - noon: Discuss different ownership structures across countries, the institutional differences and their impact on real estate business, transparency and depth of investable markets, as well as due diligence and local relationships

Noon - 1:00 pm: Lunch Break

1:00 pm - 2:30 pm: Learn about currency risk and hedging, and comparative risk analysis: country and asset-country risk, portfolio approach: variances and covariances across countries in asset markets, international real estate trusts (REIT)

2:30 pm - 2:45 pm: Break

2:45 pm - 4:00 pm: REIT portfolio strategies: net asset value, beta covariences, and also the secondary debt markets: global MBS, CMBS, RMBS, and CDO

Links & Resources

At the Intersection of Real Estate and Urban Economics: Albert Saiz leads research efforts looking at what's really going on in real estate and urban housing markets. ILP Institute Insider, October 2014

Content

The type of content you will learn in this course, whether it's a foundational understanding of the subject, the hottest trends and developments in the field, or suggested practical applications for industry.

Fundamentals: Core concepts, understandings, and tools - 35%|Latest Developments: Recent advances and future trends - 30%|Industry Applications: Linking theory and real-world - 35%
35|30|35
Delivery Methods

How the course is taught, from traditional classroom lectures and riveting discussions to group projects to engaging and interactive simulations and exercises with your peers.

Lecture: Delivery of material in a lecture format - 75%|Discussion or Groupwork: Participatory learning - 25%
75|25
Levels

What level of expertise and familiarity the material in this course assumes you have. The greater the amount of introductory material taught in the course, the less you will need to be familiar with when you attend.

Introductory: Appropriate for a general audience - 70%|Specialized: Assumes experience in practice area or field - 30%
70|30