1. HIGHER EDUCATION IN REAL ESTATE AND RESPONSES TO THE REVOLUTION IN REAL ESTATE JOBS ERES EDUCATION SEMINAR VIENNA 4-5DECEMBER 2009 Prof. Dr. ERIC PICHET, FRICS BEM-Bordeaux Management School

2. Analysing the Evolutions of Real Estate Jobs-market New professions have cropped up (asset management and consulting) Old professions like real estate expertise and investment undergoing significant change. In France, real estate managers tend to work in dedicated structures reporting directly to general management.

3. BUILDING THE 3 CONDITIONS FOR A SUCCESSFUL POSTGRADUATE PROGRAMME IN REAL ESTATE IN 2009 « The most complete of all acts is the act of building » Paul VALERY, EUPALINOS or The Architect, 1921.

4. I. Balancing Courses Run by Academics and Professionals. “Thoughts without substance are empty and like concept-less blind intuitions” KANT, Critique of Pure Reason, 1781.

5. I. Avoiding 2 Obstacles for a Postgraduate Programme in Real Estate The first is an overly academic approach lacking in practicality. The second is just as dangerous and involves empowering practitioners alone, under the premise that they will have a better insight into the real world.

6. I.Building the Ideal Architecture A good balance between these two poles – involve a 50/50 split between theoretical courses run by academics and professionals’ practical presentations. The syllabus must start with academics offering students a theoretical framework evoking concepts and issues of use to them.

7. II. Dealing with the Financialisation of Real Estate. Accounting for the financialisation of real estate over the past 15 years: strengthening a financial approach to real estate within the syllabus.

8. II. Since 1993 in France This has been a clear trend in France since 1993 with the arrival of US funds that started buying commercial property on the basis of discounted future flow calculations.

9. II. Modernizing Real Estate Expertise Real estate expertise must therefore be taught no longer only using comparative methods as people used to do in the past but also by applying discounted cash flows, hedonist methods, etc.

10. II Teaching Derivatives on Real Estate. This will specifically entail derivative products for which real estate constitutes an underlying asset, ranging from real estate indexes to securitised real estate assets.

11. II Comparing with other assets. Long-term government debt is useful at this level since it enables a calculation of risk premiums and an identification of possible speculative bubbles.

13. III. Choosing Professionals both Competent and Good Teachers. It is relatively easy for the director of a postgraduate programme in real estate to find top quality professionals willing to give classroom talks - but much harder to find ones who are competent but can also teach

14. III Learning from the Students. The only way that programme managers can identify poor teaching is through students feedback.

15. CONCLUSION To maintain a top notch postgraduate programme in real estate, the director must track professional and technical changes by maintaining up-to-date knowledge of state- of-the-art research literature. scanning professional circles (hence the usefulness of being an RICS member)

16. CONCLUSION Lastly, although today’s financial and real estate crises have clearly been a major shock for the profession, academics must keep their “eye on the ball” and work to ascertain – above and beyond the sector’s current chaotic situation – future signs of recovery and, above all, the emergence of new professions and practices.