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Wellness Real Estate Market Expected to Hit $913 Billion By 2028

The Global Wellness Institute (GWI), a nonprofit research organization, released a new data report yesterday at the third annual Wellness Real Estate & Communities Symposium in New York.

The report reveals that wellness real estate has been the fastest-growing market in the 11-sector wellness economy in recent years, surging from $225 billion in 2019 to $438 billion in 2023. This signifies a 18 percent growth rate in comparison to the five percent annual growth rate for overall global construction. 

With the pandemic accelerating the importance of wellness spaces, the GWI forecasts that the market will grow more than 15 percent annually from 2023 to 2028, when it will approach the trillion-dollar mark ($913 billion). 

 

Wellness market data by region

  • The three biggest national markets are the U.S. ($181 billion), China ($73 billion), and the UK ($29 billion).
  • The market is heavily concentrated in North America (44 percent of total), Asia-Pacific, and Europe, which together account for 99 percent of the global sector.
  • Latin America-Caribbean and Europe have been the fastest-growing regional markets from 2019 to 2023.
  • Middle East-North Africa remained one of the fastest-expanding markets over the last four years, even with slower construction growth. 
  • Asia-Pacific is home to a number of large, fast-growing countries for wellness real estate (e.g., Australia, Japan, China, India).
  • At the regional level, wellness real estate growth has outpaced overall construction growth by 3-4 times across every region since 2019.

 

Future opportunities and challenges

The report identifies 11 key future drivers and opportunities for the market, including wellness features in luxury properties; the role of healthy buildings in public health strategy; and the significance of indoor air quality and natural elements.

GWI also outlines six key challenges, including how the rise of extreme weather will drive demand for climate-adaptive features, as well as the ways in which construction regulations can stand in the way of wellness real estate. Yet another challenge emerges with the trend of premiumization, which widens the gap between ultra-luxury wellness properties and housing tailored to average families. However, in this challenge is an opportunity to fill the need for affordable and rental wellness homes.

The full GWI report can be found here.

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