Five Trends That Will Drive the Future of the $275Bn Wellness Lifestyle Real Estate
Did you know that the Wellness Lifestyle Real Estate sector is now valued at more than $275 billion?
What’s more fascinating is that it’s expected to be a $580.3 billion market by 2025.
The wellness market is already worth more than $4 trillion, with wellness lifestyle real estate accounting for 5% of that. From $134 billion in 2017, it increased by 22.1 percent between 2019 and 2020. With a market size of $16.54 billion, Australia ranked third among the top countries with the highest market for Wellness Lifestyle Real Estate, up from $9.5 billion in 2017.
According to the Global Wellness Institute, there are approximately 2,300 wellness-focused projects around the world as of December 2021.
Based on our internal study, the following are the important themes that will propel the wellness lifestyle real estate market even higher:
1. Virus transmission prevention measures
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.
2. 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.
According to our internal study, the pandemic has refocused attention on the role of buildings in the spread of communicable diseases, particularly in high-density and shared places. There is now a greater demand for features that meet the following criteria for preventing virus transmission:
• The use of natural ventilation
• Airflow
• Voice-activated and touchless doors, keys, and elevators
• UV light sanitation
• Air filtration systems
• Temperature and humidity management
• Antimicrobial surfaces
• Voice-activated and touchless doors, keys, and elevators
Various technologies, such as Zip Water, a global corporation that offers a sophisticated water drinking system that filters water and promotes less usage of single-use bottles in homes and workplaces, are continuing to rise to mitigate virus transmission. Another example is BioAirTec, a company located in Australia that uses high-end filters to ensure that indoor air is disease-free.
Wellness features and healthy design will soon become commonplace not only in luxury residences, but also in mid-market and low-cost properties. As a front-end investment to reduce public health costs, countries with publicly financed healthcare will help push wellness-focused features into inexpensive or subsidised homes.
3. A spike in the proportion of people interested in obtaining wellness certificates
According to our internal research, real estate investors, notably in Asia, North America, and Europe, are becoming increasingly interested in healthy buildings and health-enhancing built environments. Tenant demand and an increasing focus on human health as part of ESG (environmental, social, and corporate governance) activities are driving this trend
The demand for properties with wellness certificates will rise as a result.
4. 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.
Did you know that NBN connection is one of the top five questions that real estate agents 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.
5. Locations that are both serene and flourishing
According to a recent poll by The Evolved Group, there have been significant relocations during the pandemic time, with 91 percent of respondents happy to be in seaside residences. While 33% of respondents have considered refurbishing their homes instead, the bulk of respondents are still leaning towards shifting to homes that are already in the heart of thriving projects.
According to the New Local: Data Report, there has been a substantial increase in people connecting with recreational spaces near their homes since the pandemic: 238 percent in Melbourne, 54 percent in Sydney, and 133 percent in Brisbane.
Furthermore, according to a study by Cooperative Research Centres, investors would pay 16 percent more for a house near these locations.