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Rock, Dietz, Müller, Schulze
ERES 2011
Determinants of success for undergraduate real estate bachelor programs in Germany
Changing landscape of undergraduate real estate education in GermanyDeterminants of success for real estate bachelor programs – a case study approach
Verena Rock, Heike Dietz, Gabriel Müller, Svenja Schulze
Hochschule Aschaffenburg, University of Applied Sciences
ERES 2011
page
Rock, Dietz, Müller, Schulze
ERES 2011
Determinants of success for undergraduate real estate bachelor programs in Germany
Agenda2
I
II
III
IV
Introduction and Research Approach
Literature Review
Competition Analysis
Survey Results: Students‘ View
Changing landscape of undergraduate real estate education in Germany:Determinants of success for real estate bachelor programs – a case study approach
V Interview Results: Practitioners‘ View
VI Conclusion
VR
page
Rock, Dietz, Müller, Schulze
ERES 2011
Determinants of success for undergraduate real estate bachelor programs in Germany
Introduction and Research Approach3
Success factors for undergraduate real estate programs in Germany
Introduction of bachelor and master programs led to significant changes in the
German education system
Undergraduate real estate education: well-established players had to redesign their
programs while new competitors appeared on the scene
Real estate students - first time in years - are faced with a wide range of options to
choose the right course of studies
German employers reflect their requirements and think about new ways to focus on
bachelor trainees
Goal of the study: elaborate main determinants of success for real estate programs
to help bachelors succeed in the industry
Analysis of competitive landscape for German undergraduate real estate programs
Focus: empirical case study of the newcomer Hochschule Aschaffenburg
VR
page
Rock, Dietz, Müller, Schulze
ERES 2011
Determinants of success for undergraduate real estate bachelor programs in Germany
Introduction and Research Approach4
Research Approach
Case Study ApproachUniv. of Appl. Sc. Aschaffenburg
(qualitative, descriptive analysis)
Empirical Survey: Students‘ Perspective
(quantitative, descriptive, rather testing hypotheses)
Expert Interviews:Practitioners‘ Perspective(qualitative, generating hypotheses)
Determinants of success for u.g. bachelor programs
Changing landscape of undergraduate real estate education in Germany
Literature on r.e. education Market analysis for r.e. education
VR
page
Rock, Dietz, Müller, Schulze
ERES 2011
Determinants of success for undergraduate real estate bachelor programs in Germany
Literature Review5
Literature on success factors of real estate degree programs
Most of research is done in US
Lack of European research activity
Nappi-Choulet dealing with French real estate education
Schulte and Rottke concerning German real estate education
Often surveys used for deduction of results
Especially surveys with professionals conducted
GM
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Rock, Dietz, Müller, Schulze
ERES 2011
Determinants of success for undergraduate real estate bachelor programs in Germany
Competition Analysis6
German Real Estate degree programs
1994 1 EBS University1996 2 HTW Berlin1998 3 HS Mittweida1999 5 HfWU Geislingen, HAWK Hildesheim, Holzminden, Göttingen2001 7 Uni Stuttgart, Bauhaus Universität Weimar2004 8 Hochschule Anhalt2005 12 Uni Regensburg, HWR Berlin, Hochscule Biberach, Hochschule 212008 13 HS Zittau/Görlitz2009 14 HS Aschaffenburg
HS Zittau/GörlitzFH Aschaffenburg
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
0 5 10
Number of German Real Estate degree programs
EBS Universität
HTW Berlin
HS MittweidaHfWU Geislingen, HAWK Hildesheim/Holzminden/Göttingen
Uni Stuttgart, Bauhaus Universität Weimar
Hochschule Anhalt
Uni Regensburg, HWR Berlin, HS Biberach, Hochschule 21
HS Zittau/Görlitz
HS Aschaffenburg
1
1 specialized degree programs have not been analysed
SS
page
Rock, Dietz, Müller, Schulze
ERES 2011
Determinants of success for undergraduate real estate bachelor programs in Germany
Competition AnalysisCharacteristics of German real estate degree programs
7
Duration: 6 to 8 semesters
Tuition fee: 150€/semester to
500€/semester
Participants: 30 to 225 per
semester
Final degree: Bachelor of Arts Trends:
Universitiy of Applied Sciences are No. 1 supplier of estate degree programms
integrated internships possibility to go abroad
SS
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Rock, Dietz, Müller, Schulze
ERES 2011
Determinants of success for undergraduate real estate bachelor programs in Germany
Students‘ view8
Survey Basics
Empirical Survey
Sample: Real estate bachelor students from 3 study tracks
Timing: April to May 2011
Answers from 63 out of 116 (response rate of 54.3%)
1st term:12
2nd term: 31
4th term: 19
n.a.: 1
Gender: 67.7% female, 32.3% male
SS
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Rock, Dietz, Müller, Schulze
ERES 2011
Determinants of success for undergraduate real estate bachelor programs in Germany
Students‘ view9
Survey results: The Bachelor Market – Students heard of or applied for…
n=63
Bachelor programs heard of
0%
10%
20%
30%
40%
50%
60%
Other: H21 Buxtehude, Hamburg, Hochschule Zittau/Görlitz, Hochschule Anhalt, FH Darmstadt
Bachelor programs applied for
0%10%20%30%40%50%60%70%
Uni Le
ipzig
HS Hol
zmind
en
HS Bib
erac
h
HTW B
erlin
HS Ber
nbur
g
HS Gei
sling
enEBS
Uni Reg
ensb
urg
Uni W
eimar
HS Mittw
eida
Uni Stu
ttgar
t
Other
only
H-AB
SS
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Rock, Dietz, Müller, Schulze
ERES 2011
Determinants of success for undergraduate real estate bachelor programs in Germany
Students‘ ViewSurvey Results: What are the most important elements of the program‘s content?
10
Preferred content of real estate bachelor program
Rank 1: International real estate law Rank 2: Real estate valuation Rank 3: Real estate investment Rank 4: Real estate finance Rank 5: Commercial properties Rank 6: Real estate asset management Rank 7: Development Rank 8: Planning and building legislation Rank 9: Brokerage Rank 10: Tax, residential properties, accounting
GM
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Rock, Dietz, Müller, Schulze
ERES 2011
Determinants of success for undergraduate real estate bachelor programs in Germany
Students‘ ViewSurvey Results: Desired field of operation after university
11
Other: Center Manager, product manager, not decided yet
Career aspirations
0
2
4
6
8
10
12
Develo
per
RE Bro
ker
RE Portf
oliom
anage
r
RE Ass
et man
ager
Surve
yor
RE Con
sulta
nt
RE Acq
uisitio
ns
RE Fun
d m
anage
r
RE Res
earc
her
RE Con
trolle
r
RE Bank
er
Other
Desired field of operation
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1st Semester 2nd Semester 4th Semester
RE Banker
RE Controller
RE Researcher
RE fund manager
RE Acquisition
RE Consultant
Surveyor
RE asset manager
RE Portfolio manager
RE Broker
Developer
GM
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Rock, Dietz, Müller, Schulze
ERES 2011
Determinants of success for undergraduate real estate bachelor programs in Germany
Students‘ ViewResults – International focus of bachelor studies
12
Most students want to study at least one semester abroad (73.6%) Costs are the only obstacle against going abroad Foreign languages should be a compulsory part of the entire
curriculum But: No strong preference for r.e. lectures in foreign languages H-AB has mainly been chosen for its international focus
Multiple answers possible, n=63
Are you planning to study abroad?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1. Semester 2. Semester 4. Semester
yes no n.a.
Main reasons to study at H-AB
0%10%20%30%40%50%60%70%80%
Unique
inte
rnat
ional fo
cus
Proxim
ity to
hom
etow
n
Rankin
g
Friend
s st
udy
at H
-AB
Low fe
es
Goo
d repu
tatio
n
Pract
ical o
rient
ation
Lang
uage o
ption
s
Small
gro
ups
Not a
ccep
ted
at oth
er u
niv.
H-AB a
ccept
ed a
t firs
t
Oth
er
GM
page
Rock, Dietz, Müller, Schulze
ERES 2011
Determinants of success for undergraduate real estate bachelor programs in Germany
Students‘ View
Survey Results: Success factors of a real estate bachelor program
13
Success factors for r.e. bachelor program (students‘ view)
Rank 1: Full scope of program‘s content
Rank 2: Expertise of professors
Rank 3: Practical relevance, practical orientation
Rank 4: Possibilities to study abroad
Rank 5: Wide scope of majors / indepth studies
Rank 6: Field trips, site visits
Rank 7: Real estate library
GM
page
Rock, Dietz, Müller, Schulze
ERES 2011
Determinants of success for undergraduate real estate bachelor programs in Germany
Practitioners‘ view14
Basics
Expert interviews
14 selected experts from different fields of the real estate industry
Answers from 5 out of 14 (response rate of 35.7%)
Industry fields of respondents: Portfolio management, mortgage
bank, developer, investor, Asset & Property management
Average working experience: 11 years
HD
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Rock, Dietz, Müller, Schulze
ERES 2011
Determinants of success for undergraduate real estate bachelor programs in Germany
Practitioners‘ view15
Results
Important bachelor program contents:
Financing and investment
Legal and institutional framework conditions
Focus on European market
Others: economic basics, accounting, knowledge on sales
structures
No exclusive preference of diploma or bachelor courses
Personal and professional expectations
Cultural and personal open-mindedness
Knowledge of different framework conditions
Independent but also team-work
Analytical and conceptual thinking / personal soft skills
HD
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Rock, Dietz, Müller, Schulze
ERES 2011
Determinants of success for undergraduate real estate bachelor programs in Germany
Practitioners’ view16
Results
No absolute preconditions for hiring
Specific real estate bachelor programs
Foreign languages
Foreign experience
Preferring students from the universities EBS, Nürtingen-
Geislingen, IREBS and Aschaffenburg
Supporting different universities (e.g. financially)
Suggestions for general improvements of u.g. r.e. education
More practical experience
International quality and knowledge
Bachelor programs are relatively well-known and high valued, but many points should be improved
HD
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Rock, Dietz, Müller, Schulze
ERES 2011
Determinants of success for undergraduate real estate bachelor programs in Germany
Conclusion17
Synopsis
Students Practitioners
Program content
• Rank 1: International real estate law• Rank 2: Real estate valuation• Rank 3: Real estate investment• Other: Finance, asset management,
development
• Rank 1: Financing and investment• Rank 2: Institutional frameworks on
international real estate markets• Rank 3: Economic basics• Other: Sales/distribution structures,
accounting, technical basicsInter-national focus
• Most students want to study at least one semester abroad (73.6%)
• Foreign languages should be a compulsory part of the entire curriculum
• But no strong preference for r.e. lectures in foreign languages
• International experience and foreign languages are nice to have, but no pre-requisite (at least not for real estate companies with national focus);
• Languages can be learnt on-the-job
Success factors
• Rank 1: Program‘s content to cover full r.e. spectrum
• Rank 2: Expertise of professors• Rank 3: Practical relevance
• Rank 1: Soft skills• Rank 2: Broad knowledge of different markets
frameworks• Rank 3: Analytical skills• Rank 4: Cultural open-mindedness
VR
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Rock, Dietz, Müller, Schulze
ERES 2011
Determinants of success for undergraduate real estate bachelor programs in Germany
Conclusion18
Real Estate education in Germany - Lessons learnt
Results of the case study:
Success factors differ between students and practitioners
- Students favor the full spectrum of international r.e. studies, but their
perception changes over time
- Employers favor soft skills and sound analytical basics, esp. in finance and
investment
Common understanding: practical education is key
Competitive landscape in Germany: Increasing focus on international aspects in real
estate education (even though industry does not follow yet?)
Questions remaining:
Does the picture change with students from other universities?
Must the real estate tool kit be taught at university or can it be learnt on the job?
If real estate is local, does undergraduate r.e. education have to be global?
VR