The Expansion of Postgraduate Provision in Real Estate

The Expansion of Postgraduate Provision in Real Estate Education: A Market Driven Choice? Éamonn D’Arcy Programmes Director Full-Time MSc Real Estate Programmes, University of Reading Business School

Key Changes in the UK n n Emphasis on Business Skills Real Estate Education within a business school context – Reading, Cass, Aberdeen Contraction in the number of undergraduate providers (withdrawal of RICS Accreditation a key factor) Considerable expansion in postgraduate provision

The Expansion of Postgraduate Provision n Mainstream providers: ¨ University of Reading (from 30 to 80 full–time students in five years) n Introduction of Flexible MSc Programmes (100+ Students) ¨ Cass (both full time and part-time provision) 150+ ¨ Oxford Brooks University (full-time) 80 ¨ University of Cambridge (full-time) 60

The Expansion of Postgraduate Provision n New Entrants ¨ London School of Economics ¨ University College London ¨ University of Sheffield ¨ University of Glasgow n But also an international trend ……

Numbers of Starters On RICS Accredited Courses by level of Course 2000 – 2006 Year 2000 2005 2006 UG 2949 3660 3710 PG 419 3609 4434 3368 7269 8144 13 50 54 Totals PG % Source: RICS

Drivers n The Changing Market For Graduates ¨ Shifting Skill Base n ¨ Real Estate Market Growth and Change n n n n Emphasis on business skills Shift away from transactions skills Internationalisation Creation of Global Delivery Platforms in Real Estate Services Expansion of the indirect market – A whole new skill set! RICS Accreditation for new programmes offered by high quality institutions and a preference for accrediting PG provision Overseas students ( China, India, Middle East, Europe) Financial Considerations – University Sector Growth in Lifelong learning – expansion of flexible provision

Key Implications n Innovation in Real Estate Education Shift to a Business School Delivery Platform ¨ Background of Educators a key factor - Fewer Educators linked to the professional body and its core educational values ¨ n Attracting ‘new blood’ to the industry Raising the ‘intelligence’ level ¨ Diversity ¨ n n Expansion has contributed to a collapse in the market for non-cognate graduates A tougher job market for undergraduates

The Market for Graduates Emphasis on business skills In particular, Economics and Finance The ‘right’ individual rather than the specific academic background or career experiences (Postgraduates) The maturity of the individual an important consideration Emphasis on personnel transferable skills An increasingly competitive job market Ultimately it is the individual which counts. Most firms are looking for a portfolio of people

Principal Employer Categories n Real Estate Service Firms ¨ International ¨ Domestic Property Companies (Developer Investors) n Institutional Investors and Investment Vehicles n Professional and Financial Service firms n Real Estate Boutiques n

Last year’s MSc Real Estate Students at Reading were employed by ……. .

Market increasingly dominated by the ‘Global Four’ Last year they employed 45% of the Reading MSc Real Estate class but only 10% of our Undergraduate class ……

The Basis of Recruitment Decisions n n n 1 A good firm ‘fit’ – background and character 2 Soft or transferable skills 3 Hard or Technical Skills n Postgraduate students are more mature and focused (they have paid a lot of money to be there!) and hence score better on 1 and 2. n Facebook! – ‘The Course of Dreams’

Concerns for the Future n n n Sustainability of current trends in the context of a market downturn Market Saturation of Postgraduate Provision in the UK? The influence of the ‘Global Four’ on Education Provision ¨ Industry Liaison and Careers a much bigger part of the educators job. ¨ Sponsorship – Reading Real Estate Foundation