Real Estate Education in Europe Some Perspectives on

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Real Estate Education in Europe: Some Perspectives on a Decade of Rapid Change Éamonn

Real Estate Education in Europe: Some Perspectives on a Decade of Rapid Change Éamonn D’Arcy School of Real Estate and Planning, University of Reading Paloma Taltavull de La Paz University of Alicante

Introduction n Real Estate Education in Europe a decade of significant change ¨ Considerable

Introduction n Real Estate Education in Europe a decade of significant change ¨ Considerable expansion in the number of students and providers n Significant growth in provision in countries with no tradition of real estate education ¨ The balance of provision has shifted towards postgraduate modes incorporating both full-time and flexible delivery ¨ Changes in the market for graduates ¨ A shift towards the provision of Real Estate Education within a business school context

Introduction n This paper is concerned with providing some evidence on the magnitude of

Introduction n This paper is concerned with providing some evidence on the magnitude of these changes and with identifying the key drivers of this process. The changing structure of provision is examined within the context of the significant changes which have taken place in the structure of European real estate markets. The paper also considers the opportunities offered for the future development of provision by two important initiatives (i) The Bologna Process and (ii) The ERES Education Seminar

Trends in Provision Numbers of Starters On RICS Accredited Courses by level of Course

Trends in Provision Numbers of Starters On RICS Accredited Courses by level of Course 2000 – 2006 Year 2000 2005 2006 UG 2949 3660 3710 PG 419 3609 4434 3368 7269 8144 13 50 54 Totals PG % Source: RICS

RICS Accredited Courses in Europe Country No of UG Institutions Courses Austria 3 PG

RICS Accredited Courses in Europe Country No of UG Institutions Courses Austria 3 PG Courses 4(PT) Belgium 2 2(PT) Czech Rep 1 1(PT) Denmark 1 France 6 Germany 14 Hungary 1 Ireland 5 1(FT) 3(FT) 5(PT) 3 (FT) 3(FT) 12(PT) 10(FT) 3(PT)

RICS Accredited Courses in Europe Country No of UG Institutions Courses PG Courses Italy

RICS Accredited Courses in Europe Country No of UG Institutions Courses PG Courses Italy 1 1 (PT) Netherlands 4 2(FT) 2 (PT) Poland 1 1(FT/PT) Portugal 1 1(PT) Russia 3 3(FT) Spain 2 2(PT) Switzerland 1 1(PT) UK 49 107(FT/PT) 204(FT/PT)

Trends in Provision n RICS Universe an imperfect indicator ¨ Many programmes outside this

Trends in Provision n RICS Universe an imperfect indicator ¨ Many programmes outside this n ¨ n n Ireland, UK, The Netherlands PG Provision more important everywhere ¨ n PT PG Routes more important UG Provision Largely confined to Countries with longstanding tradition of Real Estate Education ¨ n Figures also include programmes in Construction PG Provision Key in Continental Europe ¨ n Nordic Countries Similar trend in the United States The characteristics of hosting institutions suggest that most of the expansion in continental Europe has taken place in a business school context The sustainability of programme numbers in the UK?

Drivers n Real Estate Market Growth and Change in Europe ¨ Significant increase in

Drivers n Real Estate Market Growth and Change in Europe ¨ Significant increase in the range and sophistication of Real Estate Involvements in Europe. n Internationalisation of Involvements ¨ ¨ ¨ n 2007 Majority of Investments flows were Cross-Border Globally Europe is the most international region in terms of real estate capital flows Evolution of significant institutional arrangements to support internationalisation in Europe Momentous growth in Indirect Market both listed and nonlisted

Drivers n Activity Internationalisation ¨ Use, Investment, Development, Service Provision n Creation of Global/Regional

Drivers n Activity Internationalisation ¨ Use, Investment, Development, Service Provision n Creation of Global/Regional Delivery Platforms in Real Estate Services Standardisation of Market Practices ¨ Market for graduates dominated by ‘the global four’ ¨ Very significant implications for real estate education ¨

Drivers n Shifting Skill Base n Emphasis on business skills In particular Economics and

Drivers n Shifting Skill Base n Emphasis on business skills In particular Economics and Finance ¨ Real estate as a professional business service ¨ Shift away from purely transactions skills ¨ Expansion of the indirect market – A whole new skill set is required! n Greater standardisation of traditional skill base n Additional skills in the area of sustainability n Increased emphasis on lifelong learning – expansion of flexible provision n

Drivers n Expanding Employer Base ¨ Real n n Estate Service Firms International Domestic

Drivers n Expanding Employer Base ¨ Real n n Estate Service Firms International Domestic ¨ Property Companies (Developer - Investors) ¨ Institutional Investors and Investment Vehicles ¨ Professional and Financial Service firms ¨ Real Estate Boutiques ¨ Specialist Real Estate Analysts

Drivers n Accreditation activities of Professional Bodies ¨ RICS – ‘Europe’ ¨ CEPI –

Drivers n Accreditation activities of Professional Bodies ¨ RICS – ‘Europe’ ¨ CEPI – pan-European organisation of real estate professionals n The wider process of European Integration

Shaping Future Provision n n Two important initiatives (1) ‘The Bologna Process’ ¨ Reshaping

Shaping Future Provision n n Two important initiatives (1) ‘The Bologna Process’ ¨ Reshaping n the structure of higher education in Europe (2) ‘The European Real Estate Society Education Seminar ¨ Important platform for constructive engagement between real estate educators in Europe ¨ Mechanism for disseminating best practice

Bologna Process n n The ‘Bologna Process’ refers to an agreement made in 1999

Bologna Process n n The ‘Bologna Process’ refers to an agreement made in 1999 among European Union (EU) states – The Bologna Declaration - to make their university degree structures converge towards a common model from 2010. Key Aims Improve transparency - facilitate the automatic recognition of university level qualifications across EU member states ¨ Eliminate barriers to professional mobility ¨ n n A key component of creating a single European labour market Significant implications for the majority of European Universities

Bologna Process n n European Universities have moved to a common model based largely

Bologna Process n n European Universities have moved to a common model based largely on the Anglo-Saxon concept of a three level structure of degrees – bachelor, masters and doctorate Common credit transfer system to promote mobility ¨ n n n Facilitates the creation of joint degrees between institutions in different parts of Europe Degree titles and contents must be easily recognisable Degrees must exhibit industry and market relevance in terms of the skills provided A commitment to fostering programmes which contribute to life-long learning.

Bologna Process and The Development of Real Estate Education in Europe n Common degree

Bologna Process and The Development of Real Estate Education in Europe n Common degree structures improve transparency and comparability of degree programmes in real estate ¨ ¨ ¨ Facilitates promotion of best practice and thus raises quality Helps define what constitutes core real estate knowledge at the different levels of degree offered. Promotes the mobility of real estate students across Europe Fosters joint programmes For employers it increases the transparency of the real estate qualifications offered by employees Potential to create real estate graduates with a pan-European body of real estate knowledge

Bologna Process and The Development of Real Estate Education in Europe n Emphasis on

Bologna Process and The Development of Real Estate Education in Europe n Emphasis on skills which meet market requirements and life-long learning ¨ Very important in trying to establish real estate programmes where no academic tradition of real estate education exists ¨ Helps educators foster better relationships with real estate professionals and key employers ¨ Ensures graduate employability will be a key concern of programme construction ¨ Life-long learning provides employers with new opportunities to up-skill existing employees

ERES Education Seminar n n First Seminar in 2005 Objective to raise the quality,

ERES Education Seminar n n First Seminar in 2005 Objective to raise the quality, status and reach of real estate education in Europe ¨ Provide suitable forum which would allow educators and education issues to take center stage ¨ Promote best practice in education ¨ Indentifying a set of minimum requirements ¨ JERER – Education Briefing ¨ A Directory of Education Provision in Europe ¨ Association of MSRE Programmes ¨ Network of Ph. D Students

ERES Education Seminar n The principal role of the seminar is to further develop

ERES Education Seminar n The principal role of the seminar is to further develop core education stakeholder relationships in Europe ¨ Between Education Providers ¨ Between Educators and appropriate Professional and Public Bodies n Key for establishing the legitimacy of real estate education. ¨ Between Educators and Employers n The Market for Graduate n Core Skills

Thoughts for The Future n n Sustainability of current provision in the context of

Thoughts for The Future n n Sustainability of current provision in the context of a significant market downturn? Impacts of the Bologna Process ¨ Improved acceptance of Real Estate Education? ¨ A Pan-European approach to real estate education? n Developing key Stakeholder relationships – An important role for the ERES education seminar