Program Overview

ECONOMIC EVALUATION OF PROJECTS

Course Overview

The course deals with the methodologies for evaluating the economic-financial sustainability of building and real estate development interventions, according to a private perspective. The evaluation of the economic sustainability of projects is one of the fundamental aspects for determining the feasibility of an intervention, from the building to the urban scale.

Aims and Content

Learning Outcomes

The course deals with the theoretical and operational tools related to the economic and financial sustainability assessment of interventions on built heritage at the construction and urban scale. Attendance and participation in theoretical lessons and exercises will allow the student to:

• recognize what are the costs and benefits related to a real estate investment project (new building intervention or recovery/renovation)
• estimate, through the appropriate methodologies, the costs and benefits over time deriving from the real estate investment
• evaluate the economic and financial feasibility of the investment also for the purpose of selecting the best alternative option
• recognize and evaluate the effects produced by the main project variables on the economic and financial feasibility of a building intervention
• draw up an economic-financial feasibility report relating to the real estate investment building project assigned as a case study by the teacher or proposed by the student

Prerequisites

Knowledge of methodologies for estimating the cost of building and infrastructure projects and their market value.

Teaching Methods

The module is divided into lectures on theoretical and operational tools for assessing the economic feasibility of interventions and classroom exercises; student attendance is recommended. For the purpose of the exam, each student will have to develop and deliver the Cost-Benefit Analysis of the case study assigned by the teacher or proposed by the student.

Syllabus/Content

The module is divided into two parts.

• The first part will deal with the theoretical tools for estimating the costs and benefits deriving from the building intervention with particular reference to the characteristics of the real estate market, the types of investors, the financial mathematics tools useful for evaluating the costs and benefits in the time.
• The second part of the module will deal with the Cost-Benefit Analysis technique from a private perspective and the main indicators for evaluating the economic and financial sustainability of real estate investments, in particular: Economic and financial Net present Value (NPV); economic and financial Internal Rate of Return (IRR).

Recommended Reading/Bibliography

• Boardman, A.E., Greenberg, D.H., Vining, A.R., Weimer, D.L., 2016, Cost-Benefit Analysis: Concepts and Practice, 3rd edition, Upper Saddle River, New Jersey: Pearson Prentice Hall.
• Brown G.R., Matysiak G.A., 2000, Real Estate Investment A Capital Market Approach, Financial Times Prentice.
• Kahr J., Thomsett M.C., 2005, Real Estate Market Valuation and Analysis, John Wiley & Sons, Inc.
• Linneman P., 2004, Real Estate Finance and Investments: Risks and Opportunities, Linneman Associates, Philadelphia, PA (United States).
• Mooya M.M., 2016, Real Estate Valuation. Theory. A Critical Appraisal, Springer.
• Peca S. P., 2009, Real Estate Development and Investment. A Comprehensive Approach, Wiley & Son Inc., New Jersey.
• Peijie Wang, 2001, Econometric Analysis of the Real Estate Market and Investment, Routledge, London.
• Ruegg T., Marshall H., 1990, Building Economics. Theory and Practice, Springer Science+Business Media
• Seeley I.H., 1996, Building-economics - four edition-, Palgrave, McMillan.

Teachers and Exam Board

• Teacher: PAOLO ROSASCO
• Exam Board:
  • PAOLO ROSASCO (President)
  • MARCO LARI
  • GIUSEPPE VALVO

Lessons

Lessons Start

First semester of academic year (end of September).

Class Schedule

The timetable for this course is available on the university's platform.

Exams

Exam Description

The exam is in written form and consists of a test with four questions (open questions or calculation exercises) relating to the topics covered in the module. The duration of the test is 2 hours. There will be 3 sessions in the summer session and 3 in the winter session. To access the exam, the student must deliver the tutorial on the Cost-Benefit Analysis of a real estate investment assigned by the teacher or proposed by the student.

Assessment Methods

The exam will verify the student's acquisition of the methodologies for assessing the economic and financial feasibility of building interventions. The overall evaluation of the module will take into account both the results of the written test and the exercises developed individually by the students. In particular, the student must demonstrate that:

• they can recognize the costs and benefits deriving from a building intervention (new construction, renovation, etc.)
• they know how to estimate the costs and benefits deriving from the building intervention
• they know how to apply the evaluation tools (Cost-Benefit Analysis) to verify the economic and financial sustainability of a building intervention
• they know how to identify and evaluate the main variables that affect the economic and financial feasibility of a building intervention

Exam Schedule

• 14/01/2026, 09:30, GENOVA, Scritto, room A4 - Villa Cambiaso - via Montallegro n. 1
• 28/01/2026, 09:30, GENOVA, Scritto, room A4 - Villa Cambiaso - via Montallegro n. 1
• 11/02/2026, 09:30, GENOVA, Scritto, room A4 - Villa Cambiaso - via Montallegro n. 1
• 12/06/2026, 09:30, GENOVA, Scritto, room A4 - Villa Cambiaso - via Montallegro n. 1
• 26/06/2026, 09:30, GENOVA, Scritto, room A4 - Villa Cambiaso - via Montallegro n. 1
• 10/07/2026, 09:30, GENOVA, Scritto, room A4 - Villa Cambiaso - via Montallegro n. 1
• 11/09/2026, 09:30, GENOVA, Scritto, room A4 - Villa Cambiaso - via Montallegro n. 1

Further Information

The student can propose, as a case study on which to develop the Cost-Benefit Analysis, a project developed in a previous design course.