Real Estate Finance and Economics

Real estate accounts for the majority of national wealth; in Japan, it accounts for 87% of the four quadrillion yen net worth. This enormous asset value represents the capitalized expenditures of individuals and organizations for the use of land and structures.
Real estate research includes theoretical and empirical analysis of household decisions and business activities, such as homeownership, leasing, development, debt financing, equity investment, property management, and valuation. Research also evaluates public policy using the capitalized value of real estate through agglomeration, transportation, and other channels. Furthermore, research extends to the macroeconomic analysis of interest rates, inflation, asset bubbles, and financial crises. Thus, real estate research, which integrates financial, macro, business, and urban economics, is pragmatic yet theoretical, local yet international, and microeconomic yet macroeconomic.
This course consists of a practical component for future policymakers and businesspeople and a research component for future researchers. The practical component provides an institutional understanding of real estate markets, financial analysis, and investment decisions, which also serves as a foundation for academic research. It combines lectures with in-class labs for hands-on learning The research component introduces theories, methods, and empirical findings through lectures and student presentations. Real estate finance also serves as a good prototype for learning general finance, including corporate finance and asset pricing.