One of the major casualties of the housing market is that there are a substantial number of family houses being underoccupied by the population aged 65+…. Why? Because there’s nowhere to go

An overview of the Senior/Independent Living Landscape in Ireland

Ireland’s population is aging at a tremendous pace; the over 65s age group is forecast to reach over 1.5 million people by 2051 – meaning around 25% of people will be 65 or over. While only a small percentage of this age group (4.5% according to ESRI) will require nursing home care a vast majority will age within their own homes and communities; living either independently or with some supports in place. It is this population demographic that senior living schemes aim to attract. With the concept hugely successful in many parts of the world already, such as in the United States and Australia, and gaining in popularity in the United Kingdom, CBRE has released a new research report to take a closer look at the current and future landscape for Senior Living in an Irish context.

Between 2005 and around 2010 dozens of retirement villages were developed around Ireland on the back of an attractive accelerated capital allowances scheme. The locations of these villages varied from the edge of town centres to rural locations, with most being developed within the grounds of nursing homes. Today, there are approximately 54 private and voluntary-run retirement villages in Ireland, with an average size of around 30 units. Most of these complexes are not within walking distance of a village, therefore not enabling “aging in place”, in communities, towns and villages.

We are yet to see the emergence of a clear senior living investment market in Ireland, however, from our UK counterparts we can learn a lot about the dynamics of the sector and some likely scenarios that may emerge in the future in Ireland. There are three key differences in senior living schemes that any developer will have to decide upon – the property style (bungalow, duplex or apartment scheme), rental vs ownership model and the level of care available for residents, if any.

A key demographic for any senior living provider in Ireland will be older individuals or couples who are occupying a larger house, with multiple bedrooms, that no longer meets their requirements. In fact, research from Census 2022 shows there are 1.2 million vacant bedrooms in Irish homes. There is a clear market of over 65s that may wish to downsize - or ‘rightsize’ – to a space more suitable for their needs, to a more energy efficient, low maintenance home, with better security and companionship nearby.

CBRE analysed recently released Census 2022 housing data on the % of households with low numbers of persons per bedroom across Ireland. This data shows that Ireland has a considerable number of homes occupied by people over 65 with hugely underutilized bedroom space, houses for which there is considerable demand by young families.

Lastly, CBRE looked into recently lodged planning applications for the delivery of Senior Living. Positively, there does appear to be strong developer appetite to provide such schemes – 2022 and 2023 saw ten applications lodged for senior living complexes by five different private developers in Dublin, Westmeath, Galway and Cork. The applications show there is a general move away from Ireland’s traditional style, bungalow retirement villages in new development proposals. New developments aim to follow more modern, apartment-style complexes. However, despite the strong sentiment and apparent willingness from private developers to provide these alternative living options for Ireland’s older population the result of these applications makes for rather bleak reading. Of the ten applications analysed by CBRE, permission has been granted for just two. Four are awaiting a result from an appeal to An Bord Pleanála.

One progressive developer aiming to deliver homes in this space is Tetrarch Homes. Following extensive research, they have designed ambitious plans for Senior Living schemes in Blackrock, Raheny and Goatstown, and state [“there is a clear demographic shift underway in Ireland that will have to be catered for. More than accommodation, however, the Tetrarch Homes Senior Living model is underpinned by a sense of community, quality of life and a quality of offering. Demographics may be changing, but so are the expectations of our future residents. Our residents will have a strong desire to remain part of the communities that they have helped grow – where they have lived their lives and raised their families. To relegate those in retirement to the outskirts of town, in housing annexed to institutional care homes, is a dated notion and one that doesn’t align to what a contemporary view of aging is. ”]. Dominic Trainor of Tetrarch Homes strongly believes in the need for delivery of age friendly homes for rightsizing and [for the delivery of spaces that will allow people to age in place, close to social and familial supports, where they can receive a level of care tailored to their individual needs]”.

So how can the delivery of Senior Living be stimulated? Whether it is down to tax incentives for “downsizers” or rezoning of suitable lands to allow for senior or assisted living, the need for this particular type of residential property is clear. Not only would such delivery provide an attractive option for retirees, it would free up thousands of family homes for which there is huge demand at present.