2024-05-22-莱坊-Ireland_Living_Sectors_Market_Report_2024_7页_868kb

Summary of Ireland Living Sectors Market Report (2024)

Core Content

The Knight Frank 2024 Market Report on Ireland's Living Sectors highlights the growing demand for housing across various demographic and product types, while also identifying significant supply challenges and the need for policy and market evolution. The report emphasizes the importance of addressing the specific needs of different age groups and housing preferences to meet the evolving market landscape.

Key Findings

Housing Demand and Supply Gap

• Annual housing demand: Knight Frank estimates that 58,000 housing units are required annually in Ireland by 2027 to meet current and future demand, with 61,000 units including student beds.
• Population growth: Ireland's population increased by 11% between 2011 and 2022, with a notable acceleration in the 2016-2022 period.
• Demographic pressure points:
  • +15% increase in the 5-15 age group.
  • +23% increase in the 45-55 age group.
  • +30% increase in those aged 75 and above.
  • +11% increase in people aged 15-25.

Living Sector Investment

• Multifamily dominance: The multifamily sector accounted for 70% of residential transactions in 2023, with 41% of transactions involving operational/ existing stock.
• Investment trends:
  • 2023 investment: Total residential investment spend was €301 million, with 98% of transactions occurring in the first half of the year.
  • Student accommodation: Only 9% of transactions in Ireland involved student housing, compared to 44% in the UK.
  • Senior Living: Non-existent in Ireland, while it represents 18-25% of UK living sector investment.
  • Co-Living: Emerging in the UK but not yet established in Ireland.
  • Single Family Housing: A growing area in the UK but historically limited in Ireland due to restrictive policies.

Market Challenges

1. Zoned Land Availability:
   • Residential zoned land sales accounted for 55% of total land sales in 2023.
   • Despite this, the volume and type of land available are insufficient to meet the housing demand.
2. Policy and Planning Delays:
   • Uncertainty in policy and delays in the planning system are limiting market activity.
   • The lack of zoned land for specific housing types (e.g., senior housing) is a major constraint.
3. Economic Context:
   • Employment in Ireland reached a new high of 2.7 million at the end of 2023.
   • High-value sectors account for 30% of total employment, contributing to the demand for housing.
   • Inflation is expected to decline towards the ECB’s 2% target in 2024.

Outlook and Recommendations

• Investor interest: Expected to rise significantly in 2024, with a focus on Dublin for PRS/BTR (Private Rented Sector / Build to Rent) investments.
• Need for diversification: The report calls for a more diversified and balanced supply of housing across all sub-sectors, including PBSA (Purpose Built Student Accommodation), Co-Living, and Senior Living.
• ESG focus: Environmental, Social, and Governance (ESG) considerations will continue to shape investment and construction trends.
• Collaboration: It is imperative that government, planning authorities, the construction sector, and funders work together to increase the supply of housing units for all types.

Comparison with the UK Market

• The UK market is more evolved and diverse, with:
  • Student accommodation being a major growth area, accounting for 44% of living sector investment.
  • Senior Living representing 18-25% of investment spend.
  • Single Family Housing growing from 0.2% to 19.8% of living sector investment.
• In contrast, Ireland's market is still developing in these areas, with limited supply and regulatory constraints.

Conclusion

The Irish Living Sectors are facing a significant challenge in meeting the growing and evolving housing demand. With a strong and growing economy, increased employment, and a changing population profile, the need for innovative and targeted housing solutions is more urgent than ever. The report stresses the importance of policy reform, improved land availability, and collaboration across sectors to ensure sustainable housing development in Ireland.