A F F LU E N T BUYERS WILL PAY M O R E F O R WELLNESS R E A L E S TAT E
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 stepped into 2020 and now under a global pandemic, the need for wellness practices both physically and mentally is more important than ever.
By Alyssa Mammano
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.
