Why Invest in Dunedin Real Estate?

Owning residential rental properties in Dunedin offers several advantages, making it an attractive option for investors. The city benefits from a strong demand for rental housing due to a distinct lack of residential development over the last ten years combined with a large student population, driven by the University of Otago and Otago Polytechnic, as well as a growing population.

Over the past decade, Dunedin’s population has surged by 10% and is projected to continue to grow at a steady rate of approximately 1% annually until 2034. The residential construction sector has been unable to keep up with this population growth, to the point where there is a current shortage of 1,500 homes in the Dunedin urban area, which is forecast to increase to 4,400 homes by 2034.

The Dunedin City Council has committed to spending $1.5 billion over 10 years renewing pipes and roads, upgrading pools and playgrounds, and planning for the future. The University of Otago and the Otago Polytechnic are upgrading their campuses over the next decade and the government has committed $1.88 billion to build the new Otago hospital. Dunedin’s economy will receive a massive boost from these projects and the hospital build alone will employ thousands of construction workers over the lifetime of the project. These are workers the city does not currently have and will have to bring in from elsewhere. This localised immigration will put further pressure on a city where the demand for high-quality housing is already outstripping supply.

Investing in Dunedin presents a unique opportunity to capitalise on an undiscovered treasure in a significantly under-supplied property market that is fuelled by a growing population, significant infrastructure projects, and an increasing housing demand.