LEARNING OUTCOMES

The course deals with the theoretical and operational tools related to the economic and financial sustainability assessment of interventions on built heritage at the construction and urban scale.

AIMS AND LEARNING OUTCOMES

Attendance and participation in theoretical lessons and exercises will allow the student to:
• recognize what are the costs and benefits related to a real estate investment project (new building intervention or recovery/renovation)
• estimate, through the appropriate methodologies, the costs and benefits over time deriving from the real estate investment;
• evaluate the economic and financial feasibility of the investment also for the purpose of selecting the best alternative option;
• recognize and evaluate the effects produced by the main project variables on the economic and financial feasibility of a building intervention;
• draw up an economic-financial feasibility report relating to the real estate investment building project assigned as a case study by the teacher.

TEACHING METHODS

The module is divided into lectures on theoretical and operational tools for assessing the economic feasibility of interventions and classroom exercises; student attendance is recommended.

For the purpose of the exam, each student will have to develop and deliver the Cost-Benefit Analysis of the case study assigned by the teacher.

Working students and students with certification of SLD, disability or other educational needs special to contact the teacher at the beginning of the course to agree teaching and examination methods that, in compliance with the objectives teaching, take into account learning methods individual.

SYLLABUS/CONTENT

The module is divided into two parts.

The first part will deal with the theoretical tools for estimating the costs and benefits deriving from the building intervention with particular reference to the characteristics of the real estate market, the types of investors, the financial mathematics tools useful for evaluating the costs and benefits in the time.

The second part of the module will deal with the Cost-Benefit Analysis technique from a private perspective and the main indicators for evaluating the economic and financial sustainability of real estate investments.

An example of an economic-financial evaluation of a building intervention will then be developed through the application of a Cost-Benefit Analysis and presented the case study on which students will have to develop a similar evaluation.

RECOMMENDED READING/BIBLIOGRAPHY

• Boardman, A.E., Greenberg, D.H., Vining, A.R., Weimer, D.L., 2016, Cost-Benefit Analysis: Concepts and Practice, 3rd edition,  Upper Saddle River, New Jersey: Pearson Prentice Hall. Brown G.R., Matysiak G.A., 2000, Real Estate Investment – A Capital Market Approach,  Financial Times Prentice.
• Grillenzoni M. e Grittani G., 1994, Estimo: teoria, procedure di valutazione e casi applicativi, Edagricole, Bologna.
• Kahr J., Thomsett M.C., 2005, Real Estate Market Valuation and Analysis, John Wiley & Sons, Inc.
• Linneman P., 2004, Real Estate Finance and Investments: Risks and Opportunities, Linneman Associates, Philadelphia, PA (United States).
• Mooya M.M., 2016, Real Estate Valuation. Theory. A Critical Appraisal, Springer.
• Peca S. P., 2009, Real Estate Development and Investment. A Comprehensive Approach , Wiley & Son Inc., New Jersey.
• Peijie Wang,  2001, Econometric Analysis of the Real Estate Market and Investment, Routledge, London.
• Prizzon F., 2001, Gli investimenti immobiliari. Analisi di mercato e valutazione economico-finanziaria degli interventi, Celid, Torino.
• Ruegg T., Marshall H., 1990, Building Economics. Theory and Practice, Springer Science+Business Media
• Seeley I.H., 1996, Building-economics - four edition- , Palgrave, McMillan.
• Utica G., 2008, Ingegnerizzazione e gestione economica del progetto, Maggioli Editore, Santarcangelo di Romagna.