Industry Report: The Wellness Real Estate Development Process Explained
By Ingo Schweder on September 25, 2019
This latest report from Horwath HTL Health & Wellness, aims to provide an understanding of the wellness real estate market, define the distinctiveness of its development process, and explain why a specific approach is required.
As people are becoming increasingly aware of the impact of lifestyle and environmental factors on their wellbeing, a USD 134.3 billion wellness real estate industry is emerging as a solution to support individuals and communities to live healthier lives. In order to achieve such an outcome, wellness real estate follows a development process that presents certain key particularities as compared to traditional real estate.
Industry Size And Growth Outlook
As of 2017, the global wellness real estate industry was worth USD 134.3 billion (total construction costs), and has grown at a CAGR of 6.4% between 2015 and 2017. Given the rising awareness of the direct influence that living and working environments have on our wellbeing, the industryhas been witnessing significant growth, with an increasing pipeline of projects and sales, despite the fact that the purchase of wellness real estate comes with sales premiums over traditional real estate.
Comparing regions, North America represents the biggest wellness real estate market, valued at USD 54.8 billion in 2017, ahead of Asia Pacific (USD 46.8 billion) and Europe (USD 31.7 billion). The United States represents the largest wellness real estate market globally, valued at USD 52.5 billion – more than twice the value of the second biggest market, China (USD 19.9 billion).
There are currently more than 740 wellness real estate projects globally that are either already built or in development, and the pipeline is continuously growing. The wellness real estate industry is projected to grow by 6.0% annually, reaching USD 180.0 billion by 2022.