Wellness Real Estate Market Analysis North America, APAC, Europe, Middle East and Africa, South America - US, China, Australia, Germany, UK - Size and Forecast 2023-2027

Wellness Real Estate Market Forecast 2023-2027

The wellness real estate market is projected to reach a value of USD 919.2 billion in 2027 with a CAGR of 21.77% between 2022 and 2027. The market growth is influenced by rising demand in luxury residential sectors, green building initiatives, and increased collaborations. Luxury residential demand drives market expansion, reflecting consumer preferences for upscale living. Green building emphasis aligns with environmental concerns, pushing for sustainable construction practices. Partnerships and collaborations foster innovation and market reach, pooling resources and expertise. Together, these factors shape the trajectory of the market, driving opportunities for stakeholders. As luxury living and sustainability gain prominence, strategic alliances amplify market impact, meeting evolving consumer and industry demands effectively.

What will be the size of the Market During the Forecast Period?

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Additionally, the market thrives on the dissolution of traditional boundaries, catering to diverse demographics including affluent foreign tourists and senior corporates across metros and non-metros. Properties nestled in picturesque foothills, lush green valleys, and secluded sea beaches combine design-driven and culinary movements to foster urbanism and holistic lifestyles. Health outcomes are prioritized through healthcare cybersecurity, emphasizing residential real estate's role in the wellness movement. Communities are designed to promote personal investment in health and wellbeing, with expenditures directed towards sanitation and building safety. Urban youths are drawn to properties in scenic hill stations, aligning with the green building movement's emphasis on environmental sustainability and promoting healthy lifestyles.

Market Dynamics and Customer Landscape

The market is driven by a confluence of factors including the demand for residential real estate catering to wellness needs, expenditure on amenities promoting health and sanitation, and the emphasis on building safety amidst infectious diseases. Consumers seek conveniences and entertainment, facilitated by advanced telecommunications while combatting sedentary lifestyles and poor diets linked to chronic respiratory diseases. The green/sustainable building movement integrates design-driven approaches and holistic health principles, offering environments conducive to healthier lifestyles. From urban districts to scenic hill stations, properties prioritize environmental impacts, stress reduction, and promoting active lifestyles. Targeting diverse demographics, including affluent tourists and urban youths, the market emphasizes personal well-being, community interactions, and holistic health management.

Market Driver

The rising demand for wellness real estate from the luxury residential sector is a key factor driving the growth of the global market. To maintain wellness among luxurious housing sectors, developers are increasingly introducing open-air yoga studios and medicinal gardens with calming herbs and meditation courtyards in their residential projects. Also, wealthy homebuyers demand eco-sensitive abodes that are built with natural products and interior design elements that help promote mental clarity. Furthermore, the increase in the number of partnerships and associations among Companies will drive the market in the luxurious sector during the forecast period.

In addition, the demand for buildings with WELL Building Standards in both commercial and residential luxurious housing sectors is increasing, thereby resulting in an up-scaling of residential and master-planned communities and luxury properties to attract higher-income consumers. Hence, such factors are expected to drive the growth of the market in focus during the forecast period.

Market Trend

Increasing demand for regenerative living is the primary trend in the global market growth. Builders and real estate developers are increasingly shifting from green buildings to regenerative buildings. This is due to the rising demand for environment-friendly buildings and increased emphasis on minimizing the release of harmful gases in the environment. Builders and real estate developers are increasingly emphasizing creating innovative, regenerative residential communities that offer green, biophilic, sustainable, and healthy designs.

The major aim for the development of regenerative buildings is to create a complete ecosystem for its residents, enabling them to produce their own healthy food using renewable energy along with clean air and recycled water. Hence, the above-mentioned factors are expected to fuel the growth of the market trends during the forecast period.

Market Challenge

High competition in the market is a major challenge to the growth of the global market. The global market is fragmented, with the presence of multiple regional as well as international Companies operating in the market. This, in turn, has increased the market competitiveness among Companies, thereby resulting in a high threat of rivalry. Companies offer differentiated services with innovative technologies because of the fragmented nature of the market.

Furthermore, the increased competition from international Companies has prompted local as well as regional Companies to enter into collaborations and partnerships, thereby intensifying the competition in the market. In addition, rising competition from local Companies that offer various building monitoring and control devices (air purifies and others) as supplies impede the growth of the market during the forecast period.

Customer Landscape

The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Customer Landscape

Who are the Major Wellness Real Estate Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Berkeley Group - The company offers wellness real estate such as wellness suites, gym, cinema room, residents lounge, and concierge. 

The market forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market Companies, including:

• CBRE Group Inc.
• Delos Living LLC
• DPZ CoDesign LLC
• EFFEKT Arkitekter ApS
• Gamuda Berhad
• GOCO HOSPITALITY
• Heta Architects
• Humaniti Montreal Inc.
• Jones Lang LaSalle Inc.
• Sansiri Public Co. Ltd.
• Signify NV
• Tata Sons Pvt. Ltd.
• Tokyu Fudosan Holdings Corp.
• Vox Media LLC

Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

The market is deeply intertwined with sleep management, weight loss, and spiritual enhancements, offering tranquil and picturesque destinations with serene ambiance and thoughtful décor. Properties boast spatial designs aligned with wellness philosophies, attracting tourism and retail offerings focusing on fashion, lifestyle, and dietary solutions. Historical and modern trends, coupled with design-driven movements and green constructions, underscore the market's commitment to environmental sustainability. Addressing chronic diseases and health challenges, the market fosters outdoor recreation and combats loneliness through virtual communities and wellness-focused residences. With an emphasis on connection and belonging, these spaces promote mind-body health, healthy eating, and social encounters, supported by amenities like general-purpose spas, Ayurveda centers, and destination spas. Additionally, eco-hotels prioritize medical wellbeing, stress management, and overall holistic wellness.

By End-User

The market share growth by the commercial segment will be significant during the forecast period. In this segment, companies such as Delos Living LLC (Delos) have started offering solutions such as MindBreaks, which aim at providing corporate wellness and curated offerings designed to help mitigate stress and improve focus, productivity, and performance in the office. In the past few years, there has been an increase in the number of commercial wellness real estate projects in the Middle East, APAC, and South America. In addition, the demand for green and sustainable buildings and increased emphasis on corporate wellness are expected to drive the segment during the forecast period.

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The commercial segment was valued at USD 104.47 billion in 2017 and continued to grow by 2021. The global market in the commercial segment is expected to record a significant growth rate during the forecast period. The commercial segment consists of commercial real estate, offices and workplaces, public buildings, hospitality developments, and medical facilities. The increasing number of wellness commercial pipeline projects in both developed and developing regions and the development of wellness communities are some of the major factors that are expected to drive the market during the forecast period. Moreover, many companies have voluntarily started using energy-efficient technologies in buildings to reduce the impact of carbon emissions. In addition, regulatory mandates are also contributing to the rise in renovation and modernization activities in commercial office spaces and buildings. This is expected to propel the demand for the global market during the forecast period.

Regional Analysis

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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America in the global market is expected to witness significant growth during the forecast period. This is due to the rising demand for luxury and an increasing number of wellness real estate commercial and residential projects that drive the growth of the regional market. The US and Canada dominate the market in North America. An increase in the number of organizations supporting the development of wellness real estate through research and on-ground programs drives the market in the US. Moreover, the market in Canada is driven by the increasing number of commercial pipeline projects in the country. The rise in the number of communities in Canada and increasing demand for green, as well as renewable buildings also drive the market in the country during the forecast period. 

Market Analyst Overview

The Wellness Real Estate Market is experiencing significant demands, driven by growing concerns over health issues and the desire for well-being. Wellness real estate activities encompass design-driven, green building movements, and intentional communities, catering to a diverse range of lifestyles and preferences. Luxury sectors are embracing eco-friendly homes and outdoor yoga studios, aligning with the wellness movement's focus on personal investment in health outcomes. However, challenges such as lack of awareness and fragmented markets persist, urging regional and international vendors to form alliances and invest in green construction policies. Segmentation analysis reveals opportunities across verticals, including residential, office, and hospitality segments, with Asia Pacific emerging as a key market for wellness lifestyle real estate. Innovations in building monitoring systems and green structures aim to enhance air quality and biodiversity, fostering wellness in daily behaviors and lifestyles.

Segment Overview

The market growth and forecasting report covers market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-User Outlook
  • Commercial
  • Residential
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Wellness Real Estate Market Scope
Market Report Coverage	Details
Page number	146
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 21.77%
Market growth 2023-2027	USD 575.9 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	21.69
Regional analysis	North America, APAC, Europe, Middle East and Africa, and South America
Performing market contribution	North America at 37%
Key countries	US, China, Australia, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Berkeley Group, CBRE Group Inc., Delos Living LLC, DPZ CoDesign LLC, EFFEKT Arkitekter ApS, Gamuda Berhad, GOCO HOSPITALITY, Heta Architects, Humaniti Montreal Inc., Jones Lang LaSalle Inc., Sansiri Public Co. Ltd., Signify NV, Tata Sons Pvt. Ltd., Tokyu Fudosan Holdings Corp., and Vox Media LLC
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period.
Customization purview	If our market research and growth report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in the Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, APAC, Europe, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about Companies
• Comprehensive analysis of factors that will challenge the growth of market Companies

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