Wellness-enhancing services have increasing received attention from both the media and hospitality consumers as people are more aware of the impacts of lifestyles on their health and wellbeing. This gives rise to wellness real estate industry, though growing slowly, it has progressively transformed itself throughout the years. Today, wellness real estate industry represents one of the most significant sectors in the global wellness economy. Horwath HTL Health and Wellness has published a report aims to provide an insight into the dynamics of wellness real estate, define the particularities of the development process and help explain why a specific approach is required.
As of 2017, the world’s wellness real estate industry was worth over USD 134 billion, and has increased at a rate of 6.4% CAGR from 2015 to 2017.
North America contributed the most to the market, valued at USD 54.8 billion in 2017, followed by Asia Pacific at USD 46.8 billion and Europe at USD 31.7 billion.
The United States alone represented USD 52.5 billion while China, the second largest wellness real estate market, was at USD 19.9 billion in 2017.
As of now, there are over 740 wellness real estate projects under construction globally. The industry is projected to grow by 6.0% annually, reaching USD 180.0 billion by 2022.
For developers, the main advantage that wellness real estate offers is increased returns that such developments bring about. Wellness lifestyle real estate developments typically achieve average sales price premiums from 10.0% up to 25.0% when compared to traditional real estate developments.
Although wellness lifestyle real estate is essentially developed according to processes and key phases of traditional residential real estates, certain key distinctions exist such as concept development, master planning and design. The report shows accessible yet green locations are preferred, and topography of a minimal elevation difference throughout the site and natural scenery are desired.
More information on the real estate development can be found in the full report at https://gocohospitality.com/wp-content/uploads/2019/09/INDUSTRY_REPORT_The-Wellness-Real-Estate-Development-Process-Explained.pdf