Real Estate Economics

The research domain Real Estate Economics comprises research on the market and the value of buildings, and the relationship between quality and revenues, and costs and finance. In the real estate market, the space market is interlinked with the asset market and the construction market. The expertise and research interests of the real estate economics group members lies in the analysis of market dynamics and actor behaviour across these three markets.

Thematic fields
Real Estate  Economics & Finance
This topic focuses on the economic performance and financial aspects of real estate in the broader macroeconomic context that shape and influence markets for real property. In addition to feasibility analysis, based on a comparison of discounted costs and benefits over a period of time, the market for real estate and its pricing mechanism is considered. Location choices of economic activities, demographic trends, government policies all affect the market for real properties and drive the demand for real estate. Consequently, investigating how different aspects of value-in-use translate to value in exchange constitutes the key research question of this theme.
Cost & Quality
Cost and quality assessment entails the monetary evaluation of alternative building designs given a specific future-use.  Aside from the question of which building design can best fulfil the future-use requirements (Fitness-for-Use), there is the cost-benefit appraisal throughout the building life cycle, whereby sustainability is addressed by incorporating environmental costs and benefits. The investment decision is based on the expectations of the future use and financial operating performance in relation to the estimated development costs to meet the future-users requirements.

Selected publications:

Ilir Nase, Jim Berry & Alastair Adair (2016) Impact of quality-led design on real estate value: a spatiotemporal analysis of city centre apartments, Journal of Property Research, 33:4, 309-331, DOI: 10.1080/09599916.2016.1258588

Ilir Nase, Jim Berry & Alastair Adair (2015) Urban design quality and real estate value: in search of a methodological framework, Journal of Urban Design, 20:5, 563-581, DOI: 10.1080/13574809.2015.1071657