Work on a $22 million retirement village has begun, with the first units expected to be finished by the end of the year.
But the trust behind the village says that is just the beginning.
Plans for the retirement village on Te Ngae Rd, to be known as Lynmore Rise Retirement Village, were first announced in 2017.
It's a joint venture between Owhatiura South Five Incorporated and Classic Builders and will include at least 66 units on a 2.2ha site bound by Basley Rd and Owhatiura Drive.
Trust member Rawiri Bhana said earthworks for the project had begun and were ahead of schedule. They were hoping to start construction about June.
It will be built in blocks of about 10 units at a time and Bhana said 66 units was the minimum and there was a possibility that number could grow to 73.
They were hoping all of the village would be finished in two to five years, before the trust looked at the empty land across the road.
"This is potentially the first stage of this village and across the road we're looking at doing in the future.
"This one is a lifestyle village ... across the road we'll look at aged care or full facilities.
"That's our long-term vision."
Bhana said it was important to the trust the project created jobs and opportunities for locals.
"One big thing for us as an iwi-lead project is beginning partnerships with Toi Ohomai. We want to not only create employment but also training opportunities.
"We want to have created at least 80 jobs in the first two years. That's jobs plus apprentice opportunities."
Bhana said with potential for development across the road too, they had work available for 15 to 20 years.
"We'd love to say that, at the end of 20 years, 200 apprentices have come through and managed to become qualified," he said.
"It's employment across the board. It's not just about money profits, it's about people profits for our community."
Bhana said while they hadn't started marketing and selling the units yet, there had been strong interest.
He said once finished the village would provide wrap-around support for retirees but still allow them to have the freedom to move around. It will have communal spaces as well as private units.
"There have been these two empty grass paddocks for years and years. We're excited to finally see movement out there."
Paul Taylor of Classic Builders said work on retaining walls was due to start this week and earthworks contractors had prepared the site for foundations.
"We have been working with Owhatiura on the planning of this project for a while now and we are all excited to see it come to life as the earthworks get under way."
The Retirement Village Association executive director John Collyns said there was a demand for retirement villages around the country and Rotorua was no exception.
He said about 13 per cent of the over-75 population lived in retirement villages.
"Demand is such that we need to build 1800 units a year for the next 26 years if we're going to maintain that 13 per cent so there's no question the demand exists.
"This [development] will go some way to address demands."
Collyns said the rule of thumb for retirement village units was that the cost would be two-thirds to three-quarters of the average freehold home price.
"The average resident can sell, realise equity and put a bit of money in the bank too."
But Age Concern Rotorua manager Rory O'Rourke said sometimes retirement village units were unaffordable as the percentage of retirees who own their own home was dropping.
"These villages are not the best for everybody, they are for those who can afford it and there are a lot who can't in Rotorua.
"That was once the norm. Retirees had a mortgage-free house. Now that's not the case."
He said the availability of houses for the elderly was "dire" around the country.