The international wellness real estate market size is estimated to increase by $1.26 billion from 2024-2028, according to Technavio, a leading global technology research and advisory company. The market’s growth will accelerate at a Compound Annual Growth Rate (CAGR) of 32.14% during the forecast period.
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.
Rising demand for wellness real estate from luxury residential sector is driving market growth, with a trend towards increasing demand for regenerative living. The green building movement and urbanism are further driving the demand for wellness real estate, as people seek sustainable and healthy living spaces.
Builders and real estate developers are transitioning from constructing green buildings to regenerative buildings in response to the growing preference for eco-friendly structures. 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, Technavio said.
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.
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. 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.
High competition poses a challenge
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.
