An emerging trend in recent years, Health and Wellness have taken root and continue to flourish as focal points in new real estate developments in 2020. The paradigm shift in technology allowing us to live longer lives while also enabling us to adopt more unhealthy, sedentary habits has awoken a movement toward Health and Wellness as a priority in all areas of our lives, including where and how we live. Interest in exercise and healthy habits has risen and continues to rise as we step into 2020. According to the recently-released Coldwell Banker Global Luxury® Report for 2020, affluent buyers are likely to pay more for healthy, eco-friendly amenities where they live.
Nowadays, wellness has outgrown the categorization of simply just exercise and has evolved to include personal care, beauty, anti-aging, mind-body health, pools and spas. As a whole, these products and services have amassed an international wellness market worth $4.5 trillion, according to the Global Wellness Institute (GWI). Of these industries, spas, wellness tourism and the expanding market for wellness real estate have experienced the strongest growth.
Between 2015 and 2017, wellness real estate expanded by 6.4% each year in response to rising demand for residences that centralize holistic health and well-being. Healthy amenities and eco-aware builders allow luxury residences to charge a premium to affluent buyers. Especially among the younger demographic, consumers tend to invest 10% to 25% more in wellness-focused real estate than in alternative options. Representing 1.5% of the total annual global construction market, wellness real estate is projected to attain $198 billion by 2022, according to GWI.
The United States is leading the movement in support of wellness real estate and has reached a market value of $52.5 billion. Following in the trend are China, with a wellness real estate market valued at $19.9 billion, Australia, valued at $9.5 billion, the United Kingdom, valued at $9 billion and Germany, valued at $6.4 billion.
“Awareness and knowledge of the benefits of living in an eco-friendly environment coupled with an industry ready to support the building of wellness real estate will ensure that this segment continues to grow,” says Paul Scialla, a former Goldman Sachs partner who founded Delos. Scialla impresses upon the influence of indoor environments on our moods and well-being. He notes that filtered air and water and ample lighting can improve energy levels, sleep patterns and productivity. Poor conditions in these areas can alternatively undermine our efforts to maintain healthy habits.
It is of little surprise that 75% of people looking to purchase a home said that shelter is essential to or extremely important for their health, according to a study conducted in 2018 by Hanley Wood. People who responded said that having more energy, feeling better and well-rested, achieving a happier state-of-mind and increasing mental alertness could all be attained with the incorporation of adequate housing.
While luxury leads the market trend toward wellness real estate in high-end residential buildings and custom homes, astute developers are making the movement a rule rather than the exception to it, which has trickled down to more affordable communities, as well. Inclusion of eco-friendly materials, building practices, wellness features and healthy amenities is on the rise and its growth in popularity likely won’t end anytime soon.