Nicholas G Pirounakis - Real Estate Economics: A Point-to-Point Handbook

Real Estate Economics

Real Estate Economics: A point-to-point handbook introduces the main tools and concepts of real estate (RE) economics. It covers areas such as the relation between RE and the macro-economy, RE finance, investment appraisal, taxation, demand and supply, development, market dynamics and price bubbles, and price estimation. It balances housing economics with commercial property economics, and pays particular attention to the issue of property dynamics and bubbles something very topical in the aftermath of the US house-price collapse that precipitated the global crisis of 2008.

This textbook takes an international approach and introduces the student to the necessary toolbox of models required in order to properly understand the mechanics of real estate. It combines theory, technique, real-life cases, and practical examples, so that in the end the student is able to:

read and understand most RE papers published in peer-reviewed journals;

make sense of the RE market (or markets); and

contribute positively to the preparation of economic analyses of RE assets and markets soon after joining any company or other organization involved in RE investing, appraisal, management, policy, or research.

The book should be particularly useful to third-year students of economics who may take up RE or urban economics as an optional course, to postgraduate economics students who want to specialize in RE economics, to graduates in management, business administration, civil engineering, planning, and law who are interested in RE, as well as to RE practitioners and to students reading for RE-related professional qualifications.

Nicholas G. Pirounakis is Professor of Economics at the American College of Greece (Deree College). He also works as an economic analyst/consultant, and economic writer and journalist.

Routledge Advanced Texts in Economics and Finance

1. Financial Econometrics

Peijie Wang

2. Macroeconomics for Developing Countries 2nd edition

Raghbendra Jha

3. Advanced Mathematical Economics

Rakesh Vohra

4. Advanced Econometric Theory

John S. Chipman

5. Understanding Macroeconomic Theory

John M. Barron, Bradley T. Ewing and Gerald J. Lynch

6. Regional Economics

Roberta Capello

7. Mathematical Finance: Core Theory, Problems and Statistical Algorithms

Nikolai Dokuchaev

8. Applied Health Economics

Andrew M. Jones, Nigel Rice, Teresa Bago d'Uva and Silvia Balia

9. Information Economics

Urs Birchler and Monika Btler

10. Financial Econometrics (Second Edition)

Peijie Wang

11. Development Finance

Debates, dogmas and new directions Stephen Spratt

12. Culture and Economics

On values, economics and international business Eelke de Jong

13. Modern Public Economics Second Edition

Raghbendra Jha

14. Introduction to Estimating Economic Models

Atsushi Maki

15. Advanced Econometric Theory

John Chipman

16. Behavioral Economics

Edward Cartwright

17. Essentials of Advanced Macroeconomic Theory

Ola Olsson

18. Behavioural Economics and Finance

Michelle Baddeley

19. Applied Health Economics (Second Edition)

Andrew M. Jones, Nigel Rice, Teresa Bago d'Uva and Silvia Balia

20. Real Estate Economics

A point-to-point handbook Nicholas G. Pirounakis

Real Estate Economics

A point-to-point handbook

Nicholas G. Pirounakis

First published 2013

by Routledge

2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN

Simultaneously published in the USA and Canada

by Routledge

711 Third Avenue, New York, NY 10017

Routledge is an imprint of the Taylor & Francis Group, an informa business

2013 Nicholas G. Pirounakis

The right of Nicholas G. Pirounakis to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patent Act 1988.

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

Library of Congress Cataloging-in-Publication Data Pirounakis, Nicholas G., 1955

Real estate economics : a point-to-point handbook / by Nicholas G. Pirounakis.

p. cm. (Routledge advanced texts in economics and finance)

Includes bibliographical references and index.

1. Real estate business. 2. Real estate investment. 3. Urban economics.

4. Commercial real estate. 5. Residential real estate. I. Title.

HD1375.P656 2012

333.33dc23

2012012458

ISBN: 9780415676342 (hbk)

ISBN: 9780415676359 (pbk)

ISBN: 9780203094648 (ebk)

Typeset in Times New Roman
by Cenveo Publisher Services

In memory of my parents,
George and Anastasia,
who taught me to love book-reading.

To my economist wife, Maria,
and my son, George.

My thanks to
Odysseus Katsaitis and Annie Triantafyllou,
colleagues at the Economics Department of
the American College of Greece,
for their helpful comments
on parts of the manuscript.

My thanks to
David Donnison and Duncan Maclennan,
for their support and guidance
during my PhD studies
at the University of Glasgow.

Contents

Figures

Tables

reduced to just two

Boxes

Abbreviations