A total of 36 new villages were added to the development pipeline last year with 452 villages currently providing homes for 50,800 residents. Photo: 123RF
An increase in the pace of planning and development is needed to meet the growing demand for retirement villages, according to the latest research.
Real estate firm JLL's new report on the aged care sector shows demand is outstripping supply.
Retirement units are being built at a rate of just under 2000 units per annum.
Butt JLL head of research Gavin Read said this would not be enough to satisfy New Zealand's ageing population.
"The demand has been strong in outstripping supply particularly when you look at developing approximately 1850 units a year when we look at the demand of slightly above 2000 units," Read said.
"It's whether the developers can keep up that pace to meet that demand.
"It's turning, planning, and early planning into actual units over the next 10 to 15 years."
A total of 36 new villages were added to the development pipeline last year with 452 villages currently providing homes for 50,800 residents.
Some of the big projects in the planning and development stage include Summerset Rotorua and Masterton, Putāruru Country Estate, West Melton, Ryman Taupō and Arvida's Waikanae Beach.
Associated care facilities were also a growing part of a retirement village's business, allowing for residents to remain in the same village if their needs increased.
About two-thirds of the current stock was owned and operated by six companies including Ryman, Summerset, Metlifecare, Bupa, Oceania and Arvida.
Read said it would remain incumbent on the major players to do the heavy lifting through delivery at scale to deliver in the areas of greatest demand, particularly Auckland, Canterbury and the Waikato.
The Auckland region accounts for the majority of retirement villages with an estimated 23 percent of the national stock.
