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Course Schedule
Classroom Sessions:
Date Venue Fees
23 - 27 Sep 2024 London - UK $5,950
21 - 25 Apr 2025 London - UK $5,950
Online Sessions:

23 - 27 Sep 2024 Online $3,950
Course Description

INTRODUCTION

This Real Estate Market Analysis and Appraisal training course is designed to enable delegates to understand how to analyse real estate markets and assess value in the largest asset class in the world. It combines two vital sets of skills for real estate professionals. First, attendees learn how to apply economic and market analysis techniques to real estate, including urban economics, market analysis reports, Highest-and-Best Use studies and feasibility studies.

Secondly attendees learn to value most typical forms of real estate using a variety of techniques and methods, using the same methods as a chartered surveyor and with examples drawn from real practice. The focus is on properties and market conditions, both existing property and new development, but with plenty of international examples, including land, properties with development potential, and different classes of property, including villas, apartments, offices, retail, hotels, warehouses and specialised property.

This GLOMACS Real Estate Market Analysis and Appraisal training course will highlight

  • Understand how market analysis works to enable the most efficient deployment of scarce resources to real estate
  • The difference between market analysis, HBU reports and feasibility studies
  • The relationship between each of the different types of real estate analysis applied to investment analysis on the one hand, and valuation on the other
  • Successfully implement a range of different real estate valuation frameworks
  • Acquire the ability to value a range of different types of properties across different jurisdictions

Training Methodology

This training course will be interactive case studies with reinforce learning through practical real-world exercises and examples throughout. Delegates will perform calculations, analyse financial aspects of the case and draw conclusions, or make presentations to other groups regarding the case. The interactivity generated by the case study process, as well as by contributions by delegates within the training course generally will encourage questions and discussion throughout which makes this training course worthwhile as a learning experience for delegates.

WHO SHOULD ATTEND?

This GLOMACS Real Estate Market Analysis and Appraisal training course is suitable for a wide range of delegates, as real estate value is central to the strategies of most commercial organisations, as well as to the public sector. It will greatly benefit those who develop, finance, manage, buy or sell real estate, especially:

  • Real estate economists
  • Regulators and urban planners
  • Real estate developers (especially those with a develop-and-hold strategy)
  • Land and construction professionals ( including quantity and chartered surveyors, and other real estate valuers)
  • Investors in real estate (including pension funds, private equity firms, REITs, REOCs, insurance companies, and opportunity/hedge funds).
  • Investment bankers, fund managers, and finance professionals engaged in real estate development and investment.
  • Bankers and lenders.
  • Public and private sector property managers.
  • Property tenants (e.g., major retailers, banks, government agencies or industrial companies).
  • Institutional lenders such as banks, life insurance companies and pension funds.
  • Lawyers, accountants and other consultants advising the real estate industry
Course Outline

DAY 1

Market Analysis

  • Real estate strategy
    • Real estate sectors and their performance
    • Available data in Saudi and the region
    • Sources of real estate information
    • Calculating and using real estate indices
  • Comparing real estate developer strategies
  • Key risks for real estate development and investment
  • Political risk
  • Analysing economic cycles and foreign exchange risk
  • Technological threats and opportunities
  • Cultural and organizational issues
  • Analysing real estate markets
    • Urban economics and city development
    • City plans and their significance
    • Localities and values
    • Competitor SWOT analysis
    • Demand and supply: pipelines, rent and occupancy levels
    • How to forecast real estate: qualitative and quantitative techniques

DAY 2

Planning and Financial Analysis

  • Planning for development
    • Zoning, planning permission and building permits
    • Highest and Best Use (HBU) studies
    • Navigating the planning process
    • Planning timelines, regulations and approvals
  • Estimating costs
    • Evaluating and benchmarking land costs
    • Regression analysis for land valuation
    • Construction cost determination, modelling and audit
  • Financing
    • Corporate vs Real Estate finance
    • The role of SPVs Bank financing and bank ratios
    • Sectoral differences in lending
    • Equity investment, joint ventures and cashflow waterfalls
  • Assessing Performance
    • Ratio-based tools (ROA, ROI and others
    • NPV and IRR and their use in practice
    • Examples of financial models
  • Risk analysis (sensitivity, scenario and Monte Carlo)

DAY 3

Property Assessment

  • Analysing individual properties
    • Classifying real estate
    • The regulatory framework for real estate analysis
    • The role of the chartered surveyor
    • RICS and Taqueem valuation standards analysed and compared
  • Valuation techniques
    • Discounted Cashflow – forecasting market trends
    • Options based valuation
    • Comparables, valuations, sales and hedonic valuation (location, size, age, type and other variables)
    • Cost methodologies
    • Combining techniques for valuation accuracy
  • The role of the surveyor
    • Content of property surveys
    • Assessing quality
    • Accessing and reviewing property maintenance and capex records
    • Key due diligence issues

DAY 4

Assessing Income Potential

  • PGI, EGI and NOI – calculating and forecasting income
  • Advantages and disadvantages of Excel
  • Integrating externalities and the valuation of multiple properties
  • Advanced DCF Valuation in Real Estate
    • RICS Valuation principles, comparisons with Dubai and elsewhere in the Gulf
    • Differences between the use of techniques for valuation and investment
    • DCF Valuation and modelling
    • Principles of DCF modelling (including NOI, cap rates, cost of capital, land prices and forecasting cashflows)
    • Presentation of DCF model including Assumptions, Operations, Senior and Junior Debt
    • Examples of DCF valuation from the Gulf
  • Multiples based valuations
    • Ratio (multiples) analysis and the selection and use of comparables.
    • Examples of multiple analysis from the Gulf
  • Forensic Financial Analysis for Real Estate
    • DCF model complexities (including taxation, depreciation, leases and examples of SPV models)
    • Use of hedonic and regression models for real estate valuation
    • How to analyse and audit DCF and multiples valuations and investments
  • Risk Analysis
    • Objectives and results of risk analysis
    • Application of methodologies (sensitivity analysis, scenarios and Monte Carlo) to the completed DCF valuation model
    • Advantages and disadvantages of different methods

DAY 5

Legal Analysis and Valuation Reports

  • Tenancies and the law
    • Freehold, leasehold and other legal issues (e.g., easements, fixtures)\
    • The analysis of tenancies
    • Tenancy renewals and options
  • Valuation Reports
    • Preparation and content of a valuation report
    • Deciding on the validity and status of valuation reports
    • Differences between jurisdictions and sectors
    • How to audit a valuation report
Certificates
  • On successful completion of this training course, GLOMACS Certificate will be awarded to the delegates
  • Continuing Professional Education credits (CPE) : In accordance with the standards of the National Registry of CPE Sponsor, one CPE credit is granted per 50 minutes of attendance
Providers and Associations

Endorsed Education Provider

  • Quality Logo

GLOMACS is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org

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