UNIVERSITY OF MINDANAO

College of Business Administration Education

Bolton Street, Davao City

Physically Distanced but Academically Engaged

Self-Instructional Manual (SIM) for Self-Directed Learning (SDL)

Course/Subject: REM 418 – International Real Estate Business

Name of Teacher: Clyde Abner C. Valdez

Disclaimer: This self-instructional learning manual is a draft version only; not for
quotation and not for commercial reproduction. This module contains topics obtained
from various sources and is intended only for the use of enrolled students at the
University of Mindanao. Revisions of this manual are expected and are progressively
done. Contents and expressions herein are solely belonging to the course
coordinators and do not necessarily reflect of the university.

Module for REM 418 – International Real Estate Business

FOR INSTRUCTIONAL USE ONLY. NOT for REPRODUCTION
Prepared by: Clyde Abner Valdez
 College of Business Administration Education
nd
2 Floor, SS Building Bolton Street, Davao City
Telefax: (082) 227-5456 local 131

Course Outline: REM 418 – International Real Estate Business

Course Coordinator: Clyde Abner C. Valdez

Email: cvaldez@umindanao.edu.ph
Student Consultation: By email
Mobile: 09236086087
Phone: (082)227-5456 Local 131
Effectivity Date: June 2020
Mode of Delivery: Blended (On-Line with virtual sessions)
Time Frame: 54 Hours
Student Workload: Expected Self-Directed Learning
Requisites: REM 324
Credit: 3
Attendance Requirements: A minimum of 95% attendance is required at
scheduled Virtual orVirtual
all scheduled face toorface sessions.
face to face sessions.

Course Outline Policy

Areas of Concern Details

Areas of Concern Details
Contact and Non-contact Hours This 3-unit course self-instructional manual is designed for
Contact and Non-contact Hours This 3-unit course self-instructional manual is
blended learning mode of instructional delivery with
designed for to blended
scheduled face face or virtuallearning mode
sessions. The expectedof
instructional delivery,
number of hours will bei.e.
54, online
includingsessions
the face tothrough
face or
thevirtual
LMSmeetings.
and theThe 2-days on-
face to campus/onsite
face face- the
sessions shall include
summative
to-face assessment
review and tasks
final(exams) since this course
examination. The is
crucial in the licensure examination
expected number of hours will be 54 including
for teachers.
review and examination days. rd th, th
Assessment Task Submission Submission of assessment tasks shall be on the 3 , 5 7 ,
and 9th week of the term. The assessment paper shall be
rd
Assessment Task Submission Submission
attached withofaassessment tasks shall
cover page indicating beofon
the title the3 ,
th, th th
5 assessment
7 and 9 task week of task
(if the the term. The assessment
is performance), the name of
the course
paper shall coordinator,
be attached date of submission
with a cover pageand name of the
student. The document should be emailed to the course
indicating the title
coordinator. It is also expected that you already paid your
Turnitin Submission (if Totuition
ensureandhonesty
other feesand authenticity,
before all of the
the submission
necessary) assessment
assessment tasks
task. are required to be submitted
through Turnitin with a maximum similarity index
of If30%
the assessment task is done in real time through the
allowed. This means that if your paper
features in the Blackboard Learning Management System,
goes beyond 30%,bethe
the schedule shall students
arranged willof either
ahead time byopt
the to
redo her/his
course paper or explain in writing addressed
coordinator.
to the Course Facilitator the reasons for the
similarity. In addition, if the paper has reached
more than 30% similarity index, the student may
be called for a disciplinary action in accordance
with the University’s OPM on Intellectual and
Academic Honesty. Please note that academic
dishonesty such as cheating and commissioning
other students or people to complete the task for
you have severe punishments (reprimand,
warning, and expulsion).

2

Penalties for Late Assignments/
Assessments
Return of Assignments/
Assessments
Assignment Resubmission
Re-marking of Assessment
Papers and Appeal
Grading System
College of Business Administration Education
nd
2 Floor, SS Building Bolton Street, Davao City
Telefax: (082) 227-5456 local 131
The score for an assessment item submitted after
the designated time on the due date, without an
approved extension of time, will be reduced by
5% of the possible maximum score for that
assessment item for each day or part day that the
assessment item is late. However, if the late
submission of assessment paper has a valid
reason, a letter of explanation should be
submitted and approved by the Course Facilitator.
If necessary, you will also be required to
present/attach evidences.
Assessment tasks will be returned to you two (2)
weeks after the submission. This will be returned
by email or via Blackboard portal.
For group assessment tasks, the Course
Facilitator will require some or few of the students
for online or virtual sessions to ask clarificatory
questions to validate the originality of the
assessment task submitted and to ensure that all
the group members are involved.
You should request in writing addressed to the
Course Facilitator his/her intention to resubmit an
assessment task. The resubmission is premised
on the student’s failure to comply with the
similarity index and other reasonable grounds
such as academic literacy standards or other
reasonable circumstances e.g. illness, accidents
financial constraints.
You should request in writing addressed to the
program coordinator your intention to appeal or
contest the score given to an assessment task.
The letter should explicitly explain the
reasons/points to contest the grade. The program
coordinator shall communicate with the students
on the approval and disapproval of the request.
If disapproved by the Course Facilitator, you can
elevate your case to the program head or the
dean with the original letter of request. The final
decision will come from the dean of the college.
Assessment methods Weights
A. Exam 1 10%
B. Exam 2 10%
C. Exam 3 10%
D. Exam 4 30%
E. Assignments 5%
F. Quizzes 10%
G. Recitation 10%
H. Research/ Project 15%
TOTAL 100%
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Preferred Referencing Style (if
the tasks require)
Student Communication
Contact Details of the Dean
Contact Details of the Program
Head
Students with Special Needs
Online Tutorial Registration (if
available and necessary)
Instructional Help Desk Contact
Details
Library Contact Details
Well-being Welfare Support Held Rhoda Neileen Luayon
Desk Contact Details
College of Business Administration Education
nd
2 Floor, SS Building Bolton Street, Davao City
Telefax: (082) 227-5456 local 131
Harvard Referencing Format
Students are required to create a umindanao
email account which is a requirement to access
the BlackBoard portal. Then, the Course
Facilitator shall enroll the students to have access
to the materials and resources of the course. All
communication formats: chat, submission of
assessment tasks, requests etc. shall be through
the portal and other university recognized
platforms. You can also contact your
teacher/Course Facilitator via traditional contact
or email. For related concerns, the students can
contact the Dean, Program Head, Library, and
Guidance Help Desks.
For students who have not created their
umindanao account and LMS account, please
contact the Course Facilitator or Program Head
for further instructions.
Dr. Vicente E. Montano
Email: vicente_montano@umindanao.edu.ph
Phone: (082) 2275456 loc. 131 / 09094177626
Sherylove P. Utida, LPT, REB, REA
Email: sutida@umindanao.edu.ph
Phone: (082) 2275456 loc. 131
Students with special needs shall communicate
with the Course Facilitator about the nature of his
or her special needs. Depending on the nature of
the need, the Course Facilitator, with the approval
of the Program Head, may provide alternative
assessment tasks or extension of the deadline of
submission of assessment tasks. However, the
alternative assessment tasks should still be in the
service of achieving the desired course learning
outcomes.
Your course coordinator will endorse you to the
tutorial or enhancement program offered by the
CBAE. This can be done online, email, or you can
call or text directly to the course coordinator if you
do not have internet connection.
cbae@umindanao.edu.ph
Head-LIC: Brigida E. Bacani
Phone: (082) 300-5456
Hotline No.0951-376-6681
Email: library@umindanao.edu.ph
gstcmain@umindanao.edu.ph
09058924090 / 09504665431
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 College of Business Administration Education
nd
2 Floor, SS Building Bolton Street, Davao City
Telefax: (082) 227-5456 local 131

Course Information – see/download course syllabus in the Black Board LMS.

CC’s Voice: Welcome to this course, REM 418 – International Real Estate Business

CO: In the practice of real estate service especially in the real estate brokerage,
knowledge in International Real Estate Business is a basic requirement.

Big Picture

This course provides relevant issues affecting the real estate industry. It gives
updates on current issues which includes the Top relevant issues and events
affecting the real estate industry in the Asia-Pacific, Middle East and the Europe
and America.

Unit Learning Outcomes (ULO): At the end of the units, you are expected to:
Analyze international news and current events relevant to real estate
business and industry.

Let us begin!

Metalanguage

In this section, the most vital terms relevant to the study of real estate and to
demonstrate ULOa will be operationally defined to establish a common frame of
reference as to how the texts work in your chosen business career. You will
encounter these terms as we go to through the study of international real estate
business. Please refer to these definitions in case you will encounter difficulty in
understanding basic internet concepts that is essential to know

• Middle East - The Middle East is the area around the eastern Mediterranean
that includes Iran and all the countries in Asia to the west and southwest of
Iran. The term "Middle East" originated from the same European perspective
that described Eastern Asia as "the Far East." The Middle East denotes the
transcontinental area between Western Asia and Egypt.

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 College of Business Administration Education
nd
2 Floor, SS Building Bolton Street, Davao City
Telefax: (082) 227-5456 local 131

• GDP - Gross domestic product (GDP) is the monetary value of all finished
goods and services made within a country during a specific period. GDP
provides an economic snapshot of a country, used to estimate the size of an
economy and growth rate. GDP can be calculated in three ways, using
expenditures, production, or incomes.

• GNP - Gross national product (GNP) is an estimate of the total value of all the
final products and services turned out in a given period by the means of
production owned by a country's residents. GNP is commonly calculated by
taking the sum of personal consumption expenditures, private domestic
investment, government expenditure, net exports, and any income earned by
residents from overseas investments, minus income earned within the
domestic economy by foreign residents.

• Economic Downturn - An economic downturn is a general slowdown in

economic activity over a sustained period of time. ... The main features of an
economic downturn include rising unemployment, falling share and house
prices, low consumer confidence and declining investment.

• Diversification Strategies - Diversification strategy is applied when

companies wish to grow. It is the practice of introducing a new product into
your supply chain in order to increase profits. These products could be a new
segment of the industry your company already occupies, known as business-
level diversification

• MENA - stands for the Middle East and Northern Africa (MENA), referring to
the countries between Iran in the East and Tunisia and Morocco in the West.

• Building and Construction Sector - Construction and building are often

used interchangeably. Typically, construction refers more broadly to any
project in the field. For example, construction may include constructing a road.
Whereas building typically refers to erecting a building such as a home or
business.

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 College of Business Administration Education
nd
2 Floor, SS Building Bolton Street, Davao City
Telefax: (082) 227-5456 local 131

• Self-sufficiency - having the ability and resources to take care of yourself

without help. An example of self sufficient is a person who grows his own
food. Having the necessary resources to get along without help; independent.
Able to provide for oneself independently of others.

• Vertical Farming - In vertical farming, crops are grown indoors, under

artificial conditions of light and temperature. It aims at higher productivity in
smaller spaces. It uses soil-less methods such as hydroponics, aquaponics
and aeroponics

• Industrial Zones - means a zone established by zoning authorities as being

most appropriate for industry or manufacturing. A zone which simply permits
certain industrial activities as an incident to the primary land use designation
is not considered to be an industrial zone.

• Economic Trend - an indicator that shows how a region or country is doing

financially. There are many other economic trends including interest rates and
inflation, but the primary take away is that economic trends provide a metric
for the region or country and are interrelated. It is the overall direction of a
market or an asset's price. In technical analysis, trends are identified by
trendlines or price action that highlight when the price is making higher swing
highs and higher swing lows for an uptrend, or lower swing lows and lower
swing highs for a downtrend.

• World Expo - For 170 years, World Expos have provided a platform to
showcase the greatest innovations that have shaped the world we live in
today. Expo 2020 will continue that tradition with the latest technology from
around the globe. World Expos, officially known as International Registered
Exhibitions, are a global gathering of nations dedicated to finding solutions to
pressing challenges of our time by offering a journey inside a universal theme
through engaging and immersive activities.

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nd
2 Floor, SS Building Bolton Street, Davao City
Telefax: (082) 227-5456 local 131

• Residential Properties - property zoned specifically for living or dwelling for

individuals or households; it may include standalone single-family dwellings to
large, multi-unit apartment buildings.

• Social Laws - Social Law means any law, rule or regulation (including
international treaty obligations) applicable in any jurisdiction concerning (i)
labour, (ii) social security, (iii) the regulation of industrial relations (between
government, employers and employees), (iv) the protection of occupational,
as well as public, health

Essential Knowledge

Big Picture in Focus:

ULO3 . To demonstrate knowledge on the basics of International Real Estate Business
in Middle East

Key Trends that Will Shape the Future of Real Estate in the Middle East and
Beyond

Buoyed as it is by strong demand, high rental yields, and a growing population and
GDP, real estate has long served as the dependable choice for investors in the
Middle East.

The forecasted prolonged stretch of low oil prices will require regional governments
to continue working on their diversification strategies, which will in turn stimulate a
slew of mega projects in the MENA region — already multiple high-profile
infrastructure projects in the Middle East have entered into their design, planning and
construction stages. Over the next few years, the MENA real estate market will
experience heavy growth and will present several attractive opportunities for
investments.

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 College of Business Administration Education
nd
2 Floor, SS Building Bolton Street, Davao City
Telefax: (082) 227-5456 local 131

But the building and construction sector accounts for a sizable chunk of the world’s
carbon emissions — as high as 39% in 2018. Since the Middle East, particularly
Saudi Arabia, the UAE and Egypt, are set to witness strong growth in construction,
the use of modern methods of construction (MMC) and the adoption of smart and
sustainable building technologies will emerge as one of the key trends to shape the
future of the Middle East’s real estate sector.

The region’s real estate sector is also likely to benefit from growth in the vertical
farming industry. In a bid to drive up self-sufficiency, vertical farming in the Middle
East, and particularly vertical farming in Dubai, is on the rise, which will have a
positive impact on the demand for warehouses.

The recent upswing in Chinese investments in the Middle East will also have long-
term implications on the Middle East’s real estate market. Egypt was the largest
recipient of funding from China’s Belt and Road Initiative (BRI), and Chinese funding
is pivotal to Oman’s development plans for its industrial zones. Stronger China-
Middle East economic relations will boost growth in the region’s real estate sector.

This report investigates the recent trends in the real estate sector, and how these
shifts will impact real estate in the Middle East, as well as the future of real estate
after COVID.

Dubai real estate prices have rebounded strongly from a record low at the end of
2020, but demand is uneven and oversupply of residential properties will pressure
prices in the long run, making the recovery fragile, S&P Global Ratings said.

Real estate investment firm CBRE Group said last week that average residential
property prices in Dubai rose 4.4% in the 12 months to August, the highest annual
growth since February 2015, but an ongoing fall in apartment rents signalled
continued weakness in the long-troubled sector.

"The rebound in demand for residential real estate has largely benefited premium
developers with a surge in pre-sales and price improvements," S&P said.

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 College of Business Administration Education
nd
2 Floor, SS Building Bolton Street, Davao City
Telefax: (082) 227-5456 local 131

It said market data showed that apartments, which make up 85-90% of properties,
experienced a price increase of about 6% in the second quarter. The rates for villas
have also accelerated while rents for apartments are still lagging.

Reuters reported in March that the luxury segment of Dubai's property market had
received a boost since last year's sharp downturn, but real estate's overall recovery
is still a long way off.

Even before the coronavirus pandemic, the long-term economic trend in the United
Arab Emirates had been sluggish since the 2014-15 oil price crash. Supply has
outpaced demand for new houses and apartments for years in a market where most
of the population are foreigners, many of whom left during the pandemic.

Real estate prices are at a low point in the cycle, S&P said, expecting a rebound in
2021-2022 supported by demand driven by improved consumer sentiment,
increased oil and gas prices, high vaccination rates in Dubai, and the city's hosting of
the World Expo, delayed by a year due to the pandemic.

In the longer run, we believe that the demand for residential properties will depend
on the success of the recent government initiatives targeting population increase,
such as new visas and more liberal social laws.

Post-Covid real estate trends

• Respondents are optimistic about the residential real estate market, and the
majority believe that monthly rental contracts will become more common post-Covid-
19.
• Covid-19 has posed an enormous challenge to office space, but responses show
signs of splitting opinions around the growth and decline of the commercial office
market.
• 41.81% of all respondents believe the industrial sector will be an important asset
class for generating foreign direct investment (FDI), especially in the UAE.

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nd
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Telefax: (082) 227-5456 local 131

• With global lockdowns reshaping consumer behaviour, the retail market has
taken a large hit during the pandemic, but 91% of respondents believe that the
traditional retail market will still remain vital – even with the continuous growth of
online retail.
• 44% of respondents believe that the hospitality sector will have the most impact
on generating FDI, and 47% of people believe that the hospitality market will recover
in the next 1-2 years.

The impact of Covid-19 on residential real estate

• The majority of respondents believe that monthly rental contracts will become
more common post-Covid.
• Buyers of residential real estate will look to spend less money.

The impact of Covid-19 on commercial real estate

• High-tech infrastructure, mixed-use complexes and a flexible approach to work
environments and rent are among the factors that will ensure commercial real estate
growth.
• Likewise, space for social distancing, internet speed and reduced unit size will be
crucial to recovery.

The impact of Covid-19 on industrial real estate

• Warehousing and data centers are predicted to be key real estate assets for the
MENA region.
• Dubai and Abu Dhabi are anticipated to see the highest levels of industrial real
estate growth over the next 12 months.

The impact of Covid-19 on retail

• PropTech is expected to be a factor of retail recovery.
• Only 9% of respondents believe that brick and mortar retail real estate will no
longer be vital post-Covid.

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nd
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Telefax: (082) 227-5456 local 131

The impact of Covid-19 on hospitality

• 91.6% of respondents agree that Covid-19 has forever changed the hospitality
sector and companies need to rethink strategies in order to be competitive.
• Serviced apartments are the biggest predicted growth sector in hospitality.

Self-Help: You can also refer to the sources below to help you further understand the lesson:

Let’s Check

Activity 2. Now that you have learned the most important concepts of the lesson,
let’s check your understanding of these concepts.

Critically study various definitions included in this chapter and analyze how
real estate has been defined over the years by different scholars.

Let’s Analyze

1. Discuss the current trends in Middle East in terms of Real Estate

2. How can the trends in Middle East affect the Real Estate investments
and demand in our country? Cite examples

3. What are the culture and subculture in Middle East that Filipinos
adapted? Discuss each
4. In your own understanding, with the continuing volatility of oil prices, a
mutable regulatory landscape, brewing trade wars, and the economic
downturn spurred into motion by the COVID-19 pandemic, are real
estate investments in the Middle East still a preferred asset? Justify
your answer
5. How will the ongoing, widespread economic, social, environmental and
technological upheaval shape the future of the real estate market in the
Middle East? Discuss your research

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 College of Business Administration Education
nd
2 Floor, SS Building Bolton Street, Davao City
Telefax: (082) 227-5456 local 131

In a Nutshell

This chapter has focused on international real estate business as an

important aspect of real estate management. We looked at various definitions of real
estate propounded by experts over the last one century or so. We discussed what
real estate practitioner ought to know to pursue the job efficiently.

Questions/Issues
Answers

1.

2.

3.

4.

5.

Keywords Index.

Middle East GDP

Social Law GNP

Residential Properties Economic Trend

MENA World Expo

Vertical Farming Economic Downturn

Industrial Zone Diversification Strategies

REFERENCES

https://www.cityscape-intelligence.com/reports-research-insight/key-trends-will-
shape-future-real-estate-middle-east-and-beyond

https://www.reuters.com/world/middle-east/dubai-real-estate-recovery-fragile-
uneven-sp-says-2021-10-12/

https://www.cityscape-intelligence.com/global-insight/middle-east-and-uae-real-
estate-report-2020

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