Objectives

(5 - 10 minutes)

• Students will understand the basic principles of the real estate sector, its role in the economy, and the key elements that shape it. They will learn about the processes of buying, selling, and developing land, buildings, and properties.

• Students will examine the different types of real estate: residential, commercial, industrial, and land. They will recognize the differences and similarities between these types and understand their specific characteristics.

• Students will explore the impact of economic factors on the real estate sector, such as supply and demand, interest rates, and the overall state of the economy. They will learn how these factors influence the performance of the real estate market.

Secondary Objectives:

• Students will develop critical thinking skills as they analyze and discuss the various factors that influence the real estate market. They will also develop problem-solving skills as they engage in activities that replicate real-world scenarios in the real estate sector.

• Students will enhance their collaborative skills as they work in teams during hands-on activities. They will also develop communication skills as they present their findings and discuss their thoughts with the class.

Introduction

(10 - 15 minutes)

• The teacher begins by reminding students about the basic concepts they have previously learned in Economics, such as supply and demand, interest rates, and the overall state of the economy. The teacher emphasizes the importance of these concepts for understanding the real estate sector.

• The teacher presents two hypothetical scenarios to students:

  1. Scenario one: A family wants to buy a new home but is uncertain about the current economic environment, fluctuating interest rates, and the influence of supply and demand in the real estate market.
  2. Scenario two: An entrepreneur wants to buy a commercial property to expand his business but is unsure about the factors that influence the price of commercial properties and how the overall state of the economy can affect his investment.

• The teacher proceeds to contextualize the importance of understanding the real estate sector by discussing its role in the economy. The teacher explains that the real estate sector is a significant part of the economy, affecting job creation, GDP, and even the financial security of individuals and families.

• The teacher introduces the topic by sharing a few interesting facts about the real estate sector. For instance, the teacher can mention that the real estate sector is one of the oldest industries in the world, dating back to ancient civilizations. The teacher can also share a story about the most expensive property ever sold, or how different economic crises, like the 2008 financial crisis, have impacted the real estate market.

• To grab the students' attention, the teacher can show a short video or a slideshow with pictures of unique and extravagant properties around the world, presenting the broad range of possibilities within the real estate sector.

• The teacher ends the introduction by stating the objectives of the lesson and explaining that the students will engage in hands-on activities to better understand the real estate sector.

Development

(20 - 25 minutes)

Activity 1: Real Estate Market Simulator

• The teacher will create a mock real estate market within the classroom to provide a hands-on experience to the students about the real estate sector.
• To start, the classroom is divided into five groups: residential, commercial, industrial, and land sellers (the four major types of real estate), and potential investors (buyers).
• The teacher provides the seller groups with characteristics of their respective properties (location, size, price, benefits, potential drawbacks). This information should be diverse to simulate different circumstances (excellent location with high price, smaller size at prime location, large size at remote location etc.).
• The buyers' group is then provided with a budget and a list of their specific property needs (family home, office building, factory, farmland).
• Sellers will present their properties with the goal of convincing the buyers to invest within their budget and needs. Similarly, buyers will negotiate with sellers for the best possible deal according to their needs.
• This activity fosters negotiation skills, analysis of various factors influencing real estate (like location, size, price), and deciphering the needs of buyers and sellers.

Activity 2: Real Estate Development Plan

• Students will work in pairs to come up for a development plan for a piece of underutilized or vacant land.
• Pairs are given maps or images of this land along with some baseline information, such as the location and surrounding environment.
• Pairs will make a proposal about what they want to develop on this land (for instance, a housing complex, a shopping mall, an office building, a park etc.) considering all the factors they have learned about the real estate sector.
• They will create a poster explaining their development plan highlighting the potential economic and social benefits of their proposed development project.
• This activity not only requires students to apply the learned theoretical knowledge about different types of real estates but also encourages imaginative and creative thinking.

Activity 3: The Impact of Economics on Real Estate

• The students will be divided into teams representing different economic indicators (interest rates, GDP, unemployment, inflation, etc.).
• Each team will research how changes in their assigned indicator can affect the real estate market, citing real-world examples.
• Afterwards, each team will present their findings to the class and engage in a discussion.
• This activity promotes research skills, team work, presentation skills and has students delve deeper into understanding the impact of economic factors on real estate.

Each of activities will be followed by a class discussion in which students share their experience, the obstacles they faced, and what they have learned. These discussions reinforce the knowledge acquired from the activities and promote communication among students.

Feedback

(5 - 10 minutes)

• After all the activities are completed, the teacher brings the whole class together for a group discussion on the solutions or conclusions each group arrived at during their activities. The teacher will facilitate this discussion, ensuring that each group has the chance to express their thoughts, ideas, and experiences. This discussion will help students to reflect on their learning and understand different perspectives.

• During this discussion, the teacher will guide the students to connect their hands-on experiences from the activities to the theoretical concepts they learned about the real estate sector. For instance, the teacher may ask students to discuss how the economic factors they represented in Activity 3 affected the buying and selling decisions in Activity 1. Or, how their development plans in Activity 2 considered the type of real estate and the economic context.

• The teacher will then ask each student to write down the most important concept they have learned during this lesson. After a couple of minutes, students will share their thoughts with the class. The teacher should emphasize the importance of these concepts and how they relate to the real estate sector and the broader economy.

• To wrap up the lesson, the teacher will encourage students to reflect on any questions they still have about the real estate sector. The teacher will ask students to write down these questions and hand them in at the end of the session. This will help the teacher understand any areas of confusion or curiosity among students, and it will inform planning for future lessons.

• The teacher will end the session by summarizing the key points of the lesson, and reminding students of the importance of understanding the real estate sector not only for those who plan to work in this industry, but also for those who will engage with it as future homeowners, tenants, or business owners.

• The teacher will also encourage students to observe the real estate sector in their own communities, and to think about how the concepts they have learned in class might apply in real-world situations.

• The teacher will thank the students for their active participation and remind them of any upcoming lessons, assignments, or assessments related to the real estate sector.

Conclusion

(5 - 10 minutes)

• The teacher wraps up the lesson by summarizing the key points learned during the class. The teacher reminds students about the basic principles of the real estate sector, including the processes of buying, selling, and developing land, buildings, and properties. The teacher also reiterates the differences between residential, commercial, industrial, and land real estate, and the impact of economic factors on the real estate market.

• The teacher highlights how the lesson bridged the gap between theory and practice. The teacher emphasizes that through the hands-on activities, students were able to apply theoretical knowledge to practical situations, enhancing their understanding of the real estate sector. For example, students simulated a real estate market, developed a plan for an underutilized piece of land, and researched the impact of economic factors on the real estate market.

• To deepen students' understanding of the real estate sector, the teacher suggests additional resources for further reading or study. These resources could include books, articles, podcasts, or documentaries about the real estate industry, its history, and its role in the economy. The teacher might also recommend websites or tools that simulate real estate transactions, allowing students to further practice the skills they've learned in a virtual environment.

• Lastly, the teacher underscores the importance of understanding the real estate sector for everyday life. The teacher explains that whether students become homeowners, renters, or even just voters who decide on local land use policies, they will encounter the real estate sector in some way. Furthermore, the teacher highlights that even beyond personal interactions with the real estate market, the sector plays a critical role in the broader economy, influencing job creation, GDP, and the financial health of the nation.

• The teacher concludes the lesson by encouraging students to continue observing and thinking critically about the real estate sector in their everyday lives, and to bring any observations or questions to future classes.