Real Estate Economics

This lecture covers the methodology of income/price analysis in real estate economics, illustrated with an example of a commercial building for sale in Geneva. It explains the terminology used in practice, such as gross and net yield, and typical income/price ratios for different types of properties. The lecture also discusses the evolution of income/price ratios over time and various methods for calculating a central value. In conclusion, the instructor summarizes how to quickly estimate the price of an income property based on its rental income, emphasizing the importance of analyzing observed income/price ratios.