19 Mar Wellness Communities Are A Multibillion-Dollar Real Estate Trend
Wellness Communities Are A Multibillion-Dollar Real Estate Trend
Our homes are the latest frontier for wellness
Wellness communities are not only a multibillion-dollar real estate trend, but they’re here to stay. A recent 2018 research report from the Global Wellness Institute entitled Build well to live well: Wellness Lifestyle Real Estate & Communities, is the first research report to size and analyze the global and regional wellness lifestyle real estate and communities market. “The 150+ page report finds that real estate and communities that intentionally put people’s health at the center of design, creation and redevelopment are the next frontier in residential real estate. The global market is growing fast: over 6% a year from 2015-2022. Consumer demand for healthy homes is outstripping supply: in the U.S., for example, there are an astonishing 1.3 million potential buyers each year but with a pipeline of 335 projects – and that pipeline leads the world.”
First, let’s start with some definitions. Wellness lifestyle real estate is defined as “homes that are proactively designed and built to support the holistic health of their residents.” Wellness community is defined as “a group of people living in close proximity who share common goals, interests, and experiences in proactively pursuing wellness across its many dimensions.” There is a conscious shift from “me” to “we:” where there is ” an awareness that our individual health and wellbeing is intrinsically linked to our broader environment and the people around us.” Providing for a broader perspective that extends to the environmental, community, and economic/financial health and wellbeing of the community.
The 2017 Global Wellness Economy Monitor noted 7 Future Trends Driving Development:
1. Blurring the lines between home, work, and leisure
2. Making healthy homes affordable
3. Bringing back multigenerational and diverse neighborhoods
4. Catalyzing medical industry clusters and health services to build wellness communities
5. Moving from green to regenerative living
6. Leveraging technologies to create smart-healthy homes and cities
7. Rediscovering hot springs as a wellness living anchor
Watch the video from the 2017 Global Wellness Summit in Palm Beach presenting their research findings:
- Wellness is a $3.7 trillion industry,
- Residential real estate is the next frontier that will be radically transformed bythe wellness movement
- Our modern living environment has also created new health risks – sedentary lifestyles, lack of physical activity, poor diet, stress
- Wellness lifestyle real estate represents a shift that explicitly puts people’s wellness at the center of the conception, design, creation, and redevelopment of our homes and neighborhoods
- We can expect smarter use of technologies and innovations, new metrics to capture the Return on Wellness (ROW)
- Buildings and infrastructure are as important as immunizations; pocket parks, paths, and plants are as beneficial as
prescriptions; friends and neighbors are more important than Fitbits
- Demand for wellness lifestyle real estate and communities is rapidly accelerating. Consumers are seeking out healthy places to live and are ready to pay for them
- Wellness lifestyle real estate is poised to go from niche tomainstream. Eventually, building for wellness will become the norm.
- GWI projects that the wellness real estate sector will expand by 6% annually in the next several years, growing to $180 billion by 2022
- Wellness lifestyle real estate developments are achieving home sales price premiums averaging 10-25% (but these can range widely from 5% to 55%). One reason for this premium is that there is not enough supply to meet demand!
Wellness Real Estate is a $134 billion global industry in 2017 with over 740 residential projects in the pipeline, across 34 countries
Download and read the full report:
Access the powerpoint presentation:
For more information please reach out and contact me, I’d love to hear from you!