Real Estate Financial Analytics Online Short Course

Course Overview

Over recent years, the commercial and residential real estate markets have been shaped by forces both expected and unforeseen. Factors like climate change, the rise in work-from-home protocols, and new tenant expectations have changed the property sector to such an extent that investment and development decisions are even more complex than before. As such, these decisions should be informed by data. Using data-driven modeling techniques helps define and quantify potential outcomes, replacing uncertainty (‘unknown unknowns’) with risk (‘known unknowns’), which can be measured and managed. 

The Real Estate Financial Analytics online short course from the MIT School of Architecture and Planning (MIT SA+P) will prepare you to assess the financial viability of both residential and commercial real estate investments through a rigorous introduction to financial modeling. 

Over six weeks, you’ll discover the analytical tools and techniques for analyzing property value and learn to apply them in creative ways to enhance your decision-making process. Guided by industry experts from the MIT Center for Real Estate (MIT CRE), you’ll explore how quantitative modeling can be used to understand property asset pricing, and study the statistical methodology for quantifying property price indexes in a similar way to securities market indexes. You’ll also delve into the challenges of forecasting future real estate prices and the dangers of relying on such forecasts, as well as be equipped to appreciate, apply, and interpret a Monte Carlo simulation analysis to inform property investment decisions. On completion of the program, you’ll understand how to use simulation modeling to value flexibility under uncertainty in real estate and have insight into the potential impact of index-based innovation. 

What You’ll Learn

The skills to use quantitative techniques and financial modeling to understand real estate price dynamics.

Insight into leveraging investment flexibility to manage and take advantage of uncertainty.

The ability to interpret Monte Carlo simulation analysis to determine risk and return in real estate investment decisions.

Statistical analysis techniques to inform real estate investment decision making, and the knowledge to assess the financial viability of residential and commercial investments.

Orientation Module

Welcome to your Online Campus! You’ll be welcomed with a personal call and get introduced to your online teaching and technical support network. Begin connecting with fellow participants while exploring the navigation and tools of your Online Campus. 

Module 1 

Real estate price dynamics

Module 2 

Tracking real estate prices: Indexes and performance

Module 3 

The forecast is ‘always’ wrong

Module 4 

Simulation modeling for real estate investment

Module 5 

Valuing flexibility in real estate

Module 6 

The real estate financial analytics frontier: The case of index-based derivatives