The construction and major refurbishments of commercial and residential buildings have enormous social and public consequences in creating the future of the urban environment and economic sustainability of the real estate industry. Investment analysis is a vital part of the decision-making process to build or refurbish a property, i.e. start the construction.

When faced with the decision to build or not, developers will necessarily examine the financial feasibility of real estate projects. Investment analysis if therefore a crucial component of the process and projects that pass the financial screen get funding and built.

This course is aimed at professionals new to real estate, working for banks, property consultancies, town planners, architects, data providers, surveying- and construction companies seeking to understand how real estate is formed and how it operates and trades, as well as how it compares to other asset classes.

Who should attend this course:

The Introduction to Property Development course is suitable for those willing to understand the life cycle of property development and learn the basic concepts of real estate supply and demand for space and urban economics. No prior knowledge is expected.


Details

Duration: 2 days
Location: London
CPD Hours: 16
Level: Basic
Maximum number of delegates: 14


Content


Day 1


The Space Market

  • Supply, demand and rents
  • Planning and development

Cities

  • Economic base and city growth
  • Urban hierarchy
  • Classification of cities

 Urban Land Value

  • “Highest and best use”
  • Cities and rents

Overview of the development decision making process

  • From site acquisition to planning, financing, construction and delivery
  • Market and competitive analysis
  • Political and legal analysis
  • Physical and design analysis

Sustainable development

  • The trend towards green buildings

Simple case study of a development project and discussion

 


Day 2


Financial viability

  • Enumerating project costs and benefits
  • Hard costs and soft costs
  • Construction budgets techniques

Development appraisals

  • Residual analysis of a development project
  • Cash flow analysis
  • Development finance and real options

The role of development appraisal

  • When and why they are used
  • Their content

Residual Valuation

  • Property yields
  • Land value
  • Profit appraisal
  • Gross and Net Development Values
  • Financial ratios

Cash flow based valuation

  • Timings: from land acquisition to lease-up and sale
  • Development budget: construction costs, allowances, fees
  • Debt finance and repayment schedule

Financial decision making

  • Ratios, comparables, and risk