Real estate finance and investments


Content, progress and pedagogy of the module

This course is an introduction to the most fundamental concepts, principles, analytical methods and tools useful for making investment and finance decisions in residential and non-residential (income-producing) commercial properties. The course provides students with a comprehensive understanding of real estate valuation, cycles, markets, investments, and decision-making, using modern finance and economics tools. A key objective of this course will be to understand the factors that distinguish real estate from conventional securities investments and the implications of those differences for financial decision-making.

This course is conducted on a lecture/discussion basis. Course materials will be distributed via Moodle. Students are expected to check the Moodle regularly to download any materials provided for class. Feedback is provided on an on-going basis through class interactions between the lecturer and the students.

Overall content (tentative):

  • Topic 1: Introduction to Real Estate Valuation
  • Topic 2: Basic Financial Economic Concepts and Tools
  • Topic 3: Real Estate Valuation and Investment Analysis
  • Topic 4: Financing and Investment Analysis
  • Topic 5: Real Estate Investment
  • Topic 6: Real Estate Development

The module is 5 ECTS with an expected workload of 135 hours. These hours are distributed among the various activities below:

  • Lectures (face-2-face): 10 x 1.75 hours – 17.5 hours
  • Exercises (individual homework with feedback) – 40 hours
  • Time for preparation (lectures, exam) – 73.5 hours
  • Exam – 4 hours

Learning objectives


  • of the core concepts, principles, analytical methods, and tools useful for making investment and financing decisions regarding residential and non-residential real estate
  • of asset vs. space markets and cash flow generation in these markets
  • of mortgage contracts and the basics of securitization
  • of the role of debt and income taxes in real estate investment, including the effect of leverage
  • of Real Estate Investment Trusts (REITs) as a distinct asset class
  • of real option theory in the context of real estate development projects


  • to discuss and apply fundamental principles, concepts, and methods to real estate valuation and investment analysis
  • to analyze real estate investment cash and make real estate investment decisions based on net present value of future expected cash flows or the internal rate of return
  • to analyze mortgage contracts from the borrower’s, the lender’s, and the investor’s perspective.
  • to compare and contrast different types of real estate
  • to build cash flow proforma to apply generally recognized investment valuation techniques to real estate
  • to use the real option approach for land value and assess real estate development projects


  • to communicate the big picture of the real estate industry by clearly identifying important components of the Real Estate System and their interaction to understand boom and bust cycles in the real estate market
  • to perform real estate investment analysis with financing alternatives in the real world
  • to advise about investment in not only existing real estate assets but also investment in new development projects



Name of examReal estate finance and investments
Type of exam
Written or oral exam
AssessmentPassed/Not Passed
Type of gradingInternal examination
Criteria of assessmentThe criteria of assessment are stated in the Examination Policies and Procedures

Facts about the module

Danish titleEjendomsfinansiering og investering
Module codeKAØKO202224
Module typeCourse
Duration1 semester
Language of instructionEnglish
Location of the lectureCampus Aalborg
Responsible for the module


Education ownerMaster of Science (MSc) in Economics
Study BoardStudy Board of Economics (cand.oecon)
DepartmentAalborg University Business School
FacultyFaculty of Social Sciences and Humanities