The new class sprang from an initiative of the Real Estate Club in response to the increasing demand for young professionals with specific training in the main areas of real estate management. This semester, it was chosen by a significant number of students from the different degrees in the Esade Law School, including the double degree in ADE and Law. In fact, the idea originated from the request of students participating in the Esade Alumni Real Estate Challenge in conversation with the Esade Alumni Real Estate Club Board of Directors, given that more and more investors are incorporating ESG measures into every stage of their properties’ life cycle.
The curriculum was designed by both the members of the Real Estate Club Board of Directors and the professors in charge of coordinating the class. To do so, they also enlisted the input of several Esade student associations with an interest in real estate. The classes are taught by executives from leading real estate companies and expert consultants and lawyers from the main law firms associated with the real estate business, and they provide comprehensive training in the main areas of real estate management, including investment, asset management, and the ESG approach. In this way, the students also have the opportunity to learn from and make contacts with top professionals in the sector.
- How is this first edition going and what topics are students finding the most interesting?
The first edition of the class was held in eight two-hour sessions and addressed the main topics that impact the real estate sector: markets, urban planning, asset valuation, financing of real estate businesses and projects, and the impact of ESG and technology factors in the sector. Based on students’ impressions, we can say that all the topics covered in the classroom were interesting to them, although obviously the aspects related to markets, investments, and financing always capture the audience’s attention more easily because this is a Business School.
- Why is the ESG approach important in the investment and management of real estate assets today?
The importance of ESG (environmental, social, and governance) factors in the management and investment of real estate assets is on the rise given regulatory pressures, the demand from investors, and social concerns, which have increased in recent years. Integrating ESG factors in the management and investment of real estate assets cannot only contribute to higher and more continuous financial yields but also minimise the risks associated with the business and create long-term value. This responds to both an increasing demand from consumers who are more aware of environmental or social issues and the preferences of investors focused on projects and businesses that incorporate these aspects into their strategy.
- Could you share some examples of how real estate companies are implementing successful ESG strategies?
I can mention management strategies without citing the names of specific companies or projects. Several successful cases that incorporate ESG criteria into their strategy are:
- Investment projects aimed at improving the energy efficiency of buildings in the portfolio.
- Sustainable real estate developments using materials with a low environmental impact from responsible sources, incorporating systems aimed at lowering water and energy consumption in the homes, and/or focusing on providing access to housing for groups with limited purchasing power.
- Companies that integrate governance protocols into their management strategy.
- How are you expecting this class to develop in the future?
Given the popularity of this first edition, which was offered for the different programmes in the Law School, the natural development would include offering it at the Business School, first for the BBA and perhaps later for other programmes. Finally, perhaps in the long term we could consider offering it in some Executive Education programmes.
- What specific competences are students expected to have acquired by the end of this class?
By the end of this class, students should know:
- The main real estate markets, including the most important value drivers.
- Criteria to assess real estate assets, which is essential in companies whose value is the value of their assets.
- Critical factors in the financing of real estate projects and businesses.
- How urban planning impacts the value of real estate projects.
- The impact of ESG factors in the strategy of real estate companies and businesses.
- The usefulness of technology to serve the real estate business.
