Research: In with the Old ...
- 2 days ago
- 2 min read
One of the challenges of successful property investment is understanding the trends that will shape future demand for real estate. This business is a long-term game generally, but development is especially sensitive to time with risk carried over lengthy lead in times, planning, construction and sell down periods that can be years in the making, from initial identification to delivery, conclusion and exit.
With this in mind we are highlighting two pieces of recent work which focus on ageing populations and how these changes will reshape demand in a range of real estate sectors.
The first comes from NZ lender Squirrel Property Finance who, in their report "People Want to Downsize", suggest downsizers are "one of the biggest untapped opportunities" in the New Zealand market for developers. Squirrel's research identifies a "large group of people" who are open to downsizing and are looking for something that’s easier to live in. They want "lower maintenance, more flexibility and the ability to lock up and leave". They’re not necessarily trying to spend less, they’re trying to live differently, but the right product simply isn't being built.
The second comes from investor M&G Real Estate, whose report "How Demographics will Reshape Real Estate" takes a more global view. This report describes how demographics, amongst other structural forces, stands out as "one of the most powerful drivers of long-term real estate fundamentals", and directly influences "what type of space is needed, where it is needed and how it is used ...".
M&G propose three core arguments:
Old money is the new growth engine. Economic influence is increasingly concentrated in older, wealthier cohorts, directing spending toward healthcare and wellness, essential services, and experience-led consumption. Ageing can create more resilient, needs based demand profiles.
Portfolios must shift to reflect the new growth areas. As populations age, demand is not declining but shifting, moving toward smaller homes, healthcare and serviceled sectors as long-term opportunity sets. The real risk is owning assets that no longer match dem1 and.
Winners will follow where people live, as well as how. The opportunity lies in aligning location with lifestyle. Cities still matter but are diverging, driven by where younger cohorts choose to concentrate. Meanwhile, ageing populations will drive more local demand, focused around community, amenity and accessibility. Where value emerges will reflect both how and where people choose to live.
By Tascott & Co
July 2026
