According to a 2018 report by the nonprofit Global Wellness Institute, the wellness real estate boom worldwide, is now poised to explode into the residential market.
The business industry has witnessed many mergers and acquisition of companies but the merging of two industries altogether is something new for the market.
According to a 2018 report by the nonprofit Global Wellness Institute, the wellness real estate boom worldwide, which took off in commercial buildings with the introduction of the WELL Building Standard in 2014 as workers sought healthier office environments, is now poised to explode into the residential market.
International Wellness Real Estate Market
Researchers at the Miami, Florida-based Global Wellness Institute say the international wellness real estate market is now a $134 billion industry. The number of wellness-oriented properties (including residential, mixed-use and commercial) has grown 6.4% annually since 2015 and is expected to continue growing at that pace through 2022, to reach $180 billion—half the size of the global “green” building industry, according to the report, which was released in January.
The rise of this Market
The market grows purely on the grounds of need and supply. The rise of climate change issues, green planet, carbon footprints and awareness among the crowd about their health as well as the health of the planet lead to the emergence of this industry.
As the millennial play, a progressively more important role in driving the consumer markets, segments such as food service, entertainment, apparel and accessories, health and beauty including personal grooming, etc. are particularly expected to derive benefits. This is also owing to the fact that millennial, in general, have a greater tendency to spend more on flexible items as their disposable income increases.
According to Anuj Kejriwal, MD & CO – ANAROCK Retail, “Wellness trends that are influencing the real estate market are as follows:
The demand for Luxury Real Estate
Other than this, millennials are looking forward to space where they spend most of their time of the day should add to their health quotient, which is why demand of luxury real estate industry is soaring high.
The report says that due to high pollution rate in metropolises of Asia and India, homebuyers are increasingly looking for a refuge from gritty city streets, high-end air, and water purification systems, indoor landscaping, and natural furnishings are priorities.
The luxury real estate was earlier limited to hotels and resorts affordable only for the bandwidth of financially equipped people, but with time the bandwidth has expanded, wherein the millennial with high disposable income are also looking for a pie.
According to one of the reports, prospective homeowners are willing to pay 10% to 25% premiums for homes in wellness developments at the middle and upper end of the market, partly because supply hasn’t yet met demand.