NEW YORK, July 15, 2024 /PRNewswire/ — The global wellness real estate market size is estimated to grow by USD 1.26 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 32.14% during the forecast period. Rising demand for wellness real estate from luxury residential sector is driving market growth, with a trend towards increasing demand for regenerative living. However, high competition in wellness real estate market poses a challenge. Key market players include Berkeley Group, CBRE Group Inc., Delos Living LLC, DPZ CoDesign LLC, EFFEKT Arkitekter ApS, Gamuda Berhad, GOCO HOSPITALITY, Heta Architects, Humaniti Montreal Inc., Jones Lang LaSalle Inc., Sansiri Public Co. Ltd., Signify NV, Tata Sons Pvt. Ltd., Tokyu Fudosan Holdings Corp, and Vox Media LLC.
Technavio has announced its latest market research report titled Global wellness real estate market 2024-2028
Get a detailed analysis on regions, market segments, customer landscape, and companies- View the snapshot of this report
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Wellness Real Estate Market Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018 – 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 32.14% |
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Market growth 2024-2028 |
USD 1265.3 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023 (%) |
24.41 |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
North America at 38% |
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Key countries |
US, China, Australia, Germany, and UK |
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Key companies profiled |
Berkeley Group, CBRE Group Inc., Delos Living LLC, DPZ CoDesign LLC, EFFEKT Arkitekter ApS, Gamuda Berhad, GOCO HOSPITALITY, Heta Architects, Humaniti Montreal Inc., Jones Lang LaSalle Inc., Sansiri Public Co. Ltd., Signify NV, Tata Sons Pvt. Ltd., Tokyu Fudosan Holdings Corp, and Vox Media LLC |
Market Driver
Builders and real estate developers are transitioning from constructing green buildings to regenerative buildings in response to the growing preference for eco-friendly structures and the importance of reducing the emission of harmful gases into the environment. These developers are focusing on creating innovative, regenerative residential communities that incorporate sustainable, healthy, and biophilic designs. The primary objective of regenerative buildings is to establish a self-sufficient ecosystem for residents, enabling them to produce their own healthy food using renewable energy, as well as providing clean air and recycled water. An illustrative example is Liuzhou Forest City in China, which is scheduled for inauguration in 2023 and will house around 30,000 people on an area of approximately 175 hectares. This city will be adorned with over 40,000 trees and 1 million plants from over 100 different species, in addition to being located in the mountainous province of Guangxi, in northern China. These factors are anticipated to fuel the expansion of the global wellness real estate market throughout the forecast period.
The wellness real estate market is experiencing significant growth as buyers prioritize health and wellness in their living environments. Key trends include addressing poor diet, respiratory diseases, and chronic diseases through design-driven movements and the food movement. Outdoor recreation, connection, and intentional communities are also popular, with a focus on holistic health and residents’ personal wellbeing. Design principles prioritize sleep, stress reduction, and behavior change, while construction output increases for luxury wellness communities in countries worldwide. Master-planned communities, multifamily housing, and urban districts cater to the active lifestyle and mind-body health needs of potential buyers. Virtual communities and intentional living spaces foster social encounters and community interactions, addressing loneliness and health challenges. Environmental impacts, toxic substance exposure, and nature are essential considerations, as is the sense of place and residents’ sense of belonging. The wellness lifestyle market is a dynamic and growing sector, with a pipeline of potential buyers seeking healthier lifestyles and a strong desire for community.
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Market Challenges
The global wellness real estate market is characterized by a high level of competition among numerous regional and international vendors. This fragmentation has led to intense rivalry, with each player offering unique services and innovative technologies to differentiate themselves. International vendors have increased the competition, prompting local and regional vendors to form collaborations and partnerships. However, the market growth may be hindered by the emergence of local vendors providing building monitoring and control devices as ancillary offerings.
The wellness real estate market is thriving as consumers prioritize lifestyle choices that align with their wellness goals. This sector includes health clubs, fitness professionals, and wellness providers, as well as resorts and culinary movement offerings. However, challenges persist in areas like health issues, design-driven and green building movements, urbanism, and luxury sector. Eco-friendly homes, outdoor yoga studios, medicinal gardens, and meditation courtyards are in demand. Yet, considerations like healthcare cybersecurity, green constructions, GHG gas emissions, operating costs, air quality, biodiversity, and building safety are crucial. Residential real estate in wellness communities focuses on health outcomes, personal investment, and conveniences such as sanitation, entertainment, telecommunications, and infectious disease prevention. Balancing these factors while addressing challenges like sedentary lifestyles and affordability is key to the market’s continued growth.
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Segment Overview
This wellness real estate market report extensively covers market segmentation by
End-user
1.1 Commercial
1.2 Residential
Geography
2.1 North America
2.2 APAC
2.3 Europe
2.4 Middle East and Africa
2.5 South America
1.1 Commercial- The global wellness real estate market in the commercial sector is projected to experience notable growth during the forecast period. This segment encompasses commercial real estate, offices and workplaces, public buildings, hospitality developments, and medical facilities. Key factors fueling market expansion include the increasing number of wellness commercial projects in both developed and developing regions and the development of wellness communities. Additionally, energy-efficient technologies’ adoption in buildings and regulatory mandates driving renovation and modernization activities are significant contributors. Delos Living LLC (Delos) is one company introducing solutions like MindBreaks, designed to enhance corporate wellness and productivity in offices. The surge in commercial wellness real estate projects in the Middle East, APAC, and South America, coupled with the demand for green and sustainable buildings and corporate wellness initiatives, further bolsters market growth.
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The global Online Home Rental Services market is rapidly growing, driven by digital platforms that streamline property listings and tenant management. Major players include Airbnb, Zillow, and Booking.com, enhancing user experiences through technology.
In the global Property Management market, demand for efficient property administration is rising. Companies like AppFolio, Yardi, and RealPage dominate, offering software solutions that simplify tenant communication, rent collection, and maintenance. Technological advancements and the trend towards remote work are key drivers in both markets, promoting convenience and operational efficiency.
Research Analysis
The wellness real estate market is a burgeoning sector at the intersection of residential real estate and the wellness movement. This market caters to various demographics, including affluent foreign tourists, senior corporates, and urban youths, seeking healthier lifestyles and improved health outcomes. Wellness communities are being developed in metros and non-metros, featuring environments that prioritize sanitation, building safety, and personal investment in wellness. These communities are located in scenic hill stations, picturesque foothills, lush green valleys, and secluded sea beaches. The culinary movement and design-driven movement have also influenced this sector, with a focus on eco-friendly homes, outdoor yoga studios, medicinal gardens, meditation courtyards, and green building practices. The luxury sector is embracing wellness real estate, offering top-tier amenities and healthcare cybersecurity. The green building movement and urbanism are further driving the demand for wellness real estate, as people seek sustainable and healthy living spaces.
Market Research Overview
The wellness real estate market is a growing segment within residential real estate, driven by the wellness movement and the increasing focus on personal health and wellbeing. This market encompasses communities designed with the environment in mind, prioritizing health outcomes for residents. Wellness communities offer conveniences and amenities that cater to active lifestyles and holistic health, including sanitation and building safety features, as well as entertainment and telecommunications. The wellness lifestyle is a personal investment in health, with expenditure on wellness-related products and services on the rise. Sedentary lifestyles and poor diet are major health challenges, leading to chronic diseases such as respiratory diseases and cardiovascular diseases. Wellness communities address these issues by promoting outdoor recreation, intentional communities, and virtual communities that foster connection and social encounters. Design-driven movements, such as the food movement and the intentional communities movement, are shaping the wellness real estate market. These communities prioritize healthier lifestyles, with design principles that promote stress reduction, behavior change, and mind-body health. Construction output for wellness communities is on the rise, with luxury buyers seeking master-planned communities, multifamily housing, and urban districts that offer environmental impacts, toxic substance exposure mitigation, and access to nature. The wellness real estate market caters to various demographics, including affluent foreign tourists, senior corporates, and urban youths. It includes general-purpose spas, Ayurveda centers, destination spas, eco-hotels, and medical wellbeing facilities that offer stress management, sleep management, weight loss, and spiritual enhancements. Whether in metros or non-metros, scenic hill stations, picturesque foothills, lush green valleys, or secluded sea beaches, wellness communities offer a sense of place, community, and belonging that prioritizes personal wellbeing.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
End-user
Commercial
Residential
Geography
North America
APAC
Europe
Middle East And Africa
South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
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SOURCE Technavio