After successful completion of the course, students are able to demonstrate basic knowledge of real estate economics (part 1 of the course) and to apply and critically reflect on fiscal impact analysis (part 2 of the course).

Part 1:

The following contents are taught in the form of lecture units:

basic terms of real estate economics, special characteristics of real estate from an economic perspective, real estate valuation methods, reasons for and forms of state intervention in the real estate market, empirical knowledge of essential state interventions in the housing and land market in Austria, the commercial real estate market in Austria, as well as the role of the real estate market in the national economy.

Part 2:

In small groups, two different development concepts worked out in P1 will be compared according to defined criteria and the most suitable project will be identified and presented in a final presentation.

• Understanding the framework conditions for the economic assessment of planning measures
• Knowledge of the methodological foundations of fiscal impact analysis in the context of municipal development planning, zoning and development planning
• Ability to estimate the community fiscal effects of a planned development of an area in a community 
• Critical examination of an urban development or spatial planning design from a financial point of view

Part 1:

• Introduction, terminology and basics of real estate economics
• Land value and valuation
• Real estate project development
• Real estate economics in an economic context
• Land market and land policy in Austria
• Housing markets and housing policy in Austria
• Commercial property market

Part 2:

• Selection of development projects to be compared (P1 draft) and determination of the relevant planning-related characteristic values for a municipal fiscal impact analysis
• Estimation of the required capital expenditures as well as the follow-up expenditures and revenues of the planned developments
• Presentation of the net financial effect of the planned developments on the municipal budget (per year and in total in the form of the fiscal payback period).
• Critical comparison of the different development variants on the basis of given criteria and economic argumentation in the large group

Lecture (Part 1)

Application of the fiscal impact analysis method (Part 2)

Part 1: 

• Written Exam

Part 2:

• Exercise with calculation model and NIKK
• final presentation
• final report