- Knight Frank calculate that a total 58,000 housing/living sector units are required per annum out to 2027, plus almost 4,000 student beds.
- While total new housing supply has improved (32,695 completed in 2023), it is time to move the discussion beyond the total numbers and into the detail of what housing product is required by type to meet the demand of different buyers/age groups.
- Knight Frank forecast that 32,000 FTB/family homes (houses or apartments – to buy or to rent, (age 35-50) which includes 8,500 for young renters/FTB’s (age 25-35) are required each of those years, to meet Ireland’s evolving demographic profile. Demand for senior living accommodation is close to 10,000 per annum.
- The Living Sector market in Ireland is not currently evolved enough to meet these requirements and this needs to change.
- There is a need for a major increase in product across all sub-sectors to target different rental cohorts within the private rental sectors and also to be available to buy across all the living sector categories.
- The UK Living Sector investment market is used as a case study to highlight the early stage that the Irish market is at.
- Low investment trading levels continue through Q1 2024 from a weak 2023, driven by lack of liquidity at the core end of the market coupled with wide bid-ask spreads.
- However, global investor fundraising is weighted towards the Living sectors with Dublin identified as a key city. The strength of the labour market and the importance of high value adding sectors to the economy underpin this focus.
