The global wellness real estate market is booming. A new report, the global Wellness Real Estate Market estimates that the market will grow from $115,152 million in 2018 to $242,461 million in 2027, at a compound annual growth rate (CAGR) of 8.8%.
Wellness real estate is real estate that is designed with the specific intent of helping its residents live healthy lives. Real estate exists in standalone housing but also in wellness communities that are springing up across the world. Rather than a passive approach to wellness, focused on eliminating negative outcomes and not doing any harm, wellness real estate and the communities that embrace it, are focused on proactively affecting wellness.
The industry has attracted a lot of demand, with many people keen to find more effective ways of improving their health. Many people are attracted by the wellness industry’s ideal of giving wellness priority in the design and development of households and communities.
Wellness, the active pursuit of those things or activities that improve our health, is an old concept, and can be traced back to ancient China and India, and classical Greece and Rome. In the 19thy century, the wellness industry in the United States and Europe took off, with many spas and wellness centres opening up, such as Battle Creek Sanitarium. Not only is the wellness movement of ancient origins, many of its tenets have been or are being accepted into the mainstream, such as green construction. Wellness real estate has embraced new design movements to create a modern and localised sensibility.
As the report indicates, the fear of climate change and the desire to do right by the planet has led many people to demand green housing, This trend is likely to persist in the long-term, especially given that green construction involves cheaper building materials, while allowing builders to sell housing at profitable prices, given the strength of demand. These factors will lead to a continuing rise in the importance of the wellness real estate sector.
Another thing driving wellness real estate growth is its ability to create spaces with high quality air and good biodiversity. The increase in the number of green organizations advocating for green issues, among which are more environmentally friendly buildings, can only help the industry to grow.
Wellness real estate ventures have sprouted up in North AMerica, Europe, Latin America, and Asia Pacific. Due to the increased competitiveness of the market, profitability may be an issue even as markets continue to grow.
The cited report suggests that residential wellness real estate will be a key driver of growth, accounting for more than $181,800 million by 2027. This is due to the growth of open-air yoga workshops and the increasing importance of urban gardening, especially for the growth of medicinal herbs & plants. With meditation becoming more and more important, creating space for mediation is more important than ever in the design of buildings.
Places like medspa will, given the demand for wellness centres, grow in number and importance over the next few years.