Four Trends That Will Drive the Future of the $275Bn Wellness Lifestyle Real Estate
Did you know that the Wellness Lifestyle Real Estate industry is now worth over $275 billion?
And what’s even more mesmerising is that by 2025, it’s estimated to be a $580.3 Billion market.
The wellness market on its own is already worth over $4 trillion, and the wellness lifestyle real estate contributes to 5% of that. From $134 billion in 2017, it has extended to a 22.1% growth from 2019 to 2020. Australia ranked 3rd amongst the top countries with the largest market size for Wellness Lifestyle Real Estate at $16.54 Billion from $9.5 billion in 2017.
As of December 2021, Global Wellness Institute calculated that there are over 2,300 wellness-focused projects across the globe.
Based on our internal research, here are the key trends that will drive the further rise of the wellness lifestyle real estate market:
1. Safety measures against virus transmission
The COVID-19 pandemic may have eased over the past year, but the cases still continue to rise around the world. As of March 2022, worldwide cases are now at 400 million with USA and India having the highest number amongst other countries, with 81 million and 43 million cases, respectively. Australia, while it is at a lower rank, still has 3.9 million cases in the country in the same period.
Our internal research shows that the pandemic has brought renewed attention to the role that buildings play in spreading communicable diseases, especially in high-density and shared spaces. There’s now a heightened demand for properties where the following are key to preventing virus transmission:
- Natural ventilation
- Airflow
- Air filtration systems
- Temperature and humidity control
- Antimicrobial surfaces
- Voice-activated and touchless doors, keys, and elevators
- UV light sanitation
Various innovations continue to rise to mitigate virus transmission including Zip Water – a global company that offers an advanced water drinking system that filters water and promotes reduced use of single-use bottles in houses and workplaces. Another would be BioAirTec, an Australian-based company aimed to make sure that the air indoors is free from diseases with the help of high-end purifiers and UV technology.
Soon enough, wellness features and healthy design will not only become standard in luxury properties but also become highly evident in mid-market and affordable properties. In particular, countries with publicly funded healthcare will help push wellness-focused features into affordable or subsidised housing, as a front-end investment to lower public health spending.
2. Heightened interest in wellness certifications
Our internal research shows that there’s a growing interest in healthy buildings and health-enhancing built environments amongst real estate investors, particularly in Asia, North America, and Europe. This is driven by tenant demand and a growing emphasis on human health as part of ESG (environmental, social, and corporate governance) initiatives.
This will heighten the demand for properties with wellness certifications. Today, only 33,681 projects are certified by the WELL Building Standard around the world. Established in 2013, WELL certifies properties that prioritise health and well-being when developing real estate. The concepts that encompass the WELL Building Standard are air, water, nourishment, light, movement, thermal comfort, sound, materials, mind, community, and innovation.
3. Wellness-centric work-from-home amenities
According to the Australian Bureau of Statistics, 40% of Australian employees have transitioned to a work-from-home arrangement as of August 2021. Accenture revealed that the hybrid workforce model is already embraced by 63% of high-revenue growth companies across the globe. In 2021, offices in New South Wales were already 35% fully occupied, 50% partially occupied, and 15% fully vacant. Read more here.
Did you know that NBN connection is one of the top five questions that realtors in Australia get asked? In the UK, buyers see that 20% of their decision involves the quality of a property’s Internet connection, a crucial number 2 factor just below the size of the property (23%). You can find out more about the emerging concepts that will drive the future design of work-from-home facilities here.
4. Serene and thriving locations
A recent survey by The Evolved Group showed that there have been major relocations over the pandemic period, and 91% of these respondents were ecstatic to be in properties within coastal areas. While 33% have thought of renovating their properties instead, the majority are still veering toward relocating to properties that are already in the centre of flourishing developments.
The New Local: Data Report also showed that since the pandemic, there has been a rapid increase in people interacting with the recreational spaces near their homes: 238% in Melbourne, 54% in Sydney, and 133% in Brisbane.
Additionally, a study from Cooperative Research Centres shows that investors would choose to pay 16% more for a property located near these areas.
Related Posts:
– Five Pillars Of Consideration When Building A Wellness-Focused Project
– 5 Wellness Lifestyle Real Estate Trends Every Australian Property Developer Must Know
