real-estate-finance-valuation-riyadh-may



Real Estate Finance and Valuation  

Assess, Analyze and Optimize Real Estate Investment Opportunities

20-22 May 2025 in Riyadh

We have designed this program to provide a solid foundation in real estate finance and economics to real estate professionals as well as finance executives responsible for analysis and planning.

This program is ideal for real estate professionals and corporate executives including:

  • Real Estate Investors and Analysts
  • Urban Planners and Project Managers
  • Real Estate Planning and Strategy Professionals
  • Real Estate Finance and Accounting Professionals
  • Bankers, Lenders and Real Estate Fund managers
  • Property Owners and Support Personnel
  • Gain a clear understanding of what determines the value of real estate assets.
  • Learn robust real estate analysis techniques.
  • Improve your understanding of drivers of risk across real estate asset classes.
  • Appreciate financial and space market perspectives of real estate. 
  • Comprehend the role financial leverage plays in real estate investments.
  • Examine supply and demand dynamics that shape real estate cycles.
  • Place your analysis within the context of macro-economic factors.
  • Understand how to strategically and financially analyze a real estate investment proposal.
  • Acquire the insights and tools to robustly assess properties.
Around the world, real estate constitutes approximately one-third of all capital assets. You simply cannot ignore it as a business opportunity. An understanding of what determines the value of income properties is essential to making intelligent decisions to develop, finance, manage, sell or buy real estate assets.

This course provides students with an appreciation of real estate finance and valuation principles and practices using modern finance and economics framework. Though we will explore and develop simple rules of thumb, the main thrust would be the application of discounted cash flow techniques to analyze and value real property. We will weave a thorough understanding of how financing decisions impact value, particularly in the context of the idiosyncrasies of emerging economies.

That requires a good understanding of both modern finance and economics, and the institutional features that differentiate real estate from other asset classes and markets. We’ll, therefore, dedicate part of the discussion to understanding urban economics and broader macro-economic factors that influence real estate decision-making.

1. Real Estate Investment Overview

Asset versus space markets.
Debt and equity investments.

2. Fundamental Concepts and Income Capitalization

Drivers of value underlying real estate assets.
Risk and return relationships for properties.
Quantifying value drivers using present value mathematics.
Simple models of real estate analysis using cash flow perpetuities.
Deconstructing capitalization rates.
A critical review of Internal Rate of Return (IRR).

3. Framework for Real Estate Financial Analysis

Framework for real estate financial analysis.
How conventional accounting can be simplified for real estate applications.
Components of a simplified real estate financial statement.
Gathering and evaluating comparable data.

4. Cash Flow Valuation of Real Estate Assets

Three perspectives of discounted cash flow property valuation.
Defining and measuring cash flow.
Matching cash flow with the discount rate.
Estimating exit values.
Capturing tax effects.
Issues in projecting cash flow for real estate investments.

5. Estimating Discount Rates

Relationship between risk and return.
Types of risk and role of diversification.
Cost of capital framework for use in emerging markets.
Determining country risk premium.
Guidelines on obtaining data.

6. Leverage and Financing

Effect of leverage on risk and return.
Does leverage imparct value?
Lease verus rent decisions.
Mortgages overview.
Introduciton to mortgage math.
Securitization.

7. Real Estate and Urban Economics

Supply and demand dynamics.
Four-quadrant model.
Introduction to urban economics.
Land value in the context of urban economics.
Limitations of discounted cash flow techniques in valuing land.
Development as a real option in assessing valuing land.
Kindly click on Download to receive the complete program details in pdf format.