Spa_Business_Handbook_2021-2022

Page 116

research

photo: Troon PacifiC

Troon Pacific CA: homes with wellness at the forefront

While hospitality, travel and spa took major hits in 2020, the crisis actually further fuelled growth for wellness real estate – which grew 22 per cent and general economic growth trends. The global wellness real estate market surged in the two years before the pandemic (2017-2019), growing 23 per cent annually, compared with 5.4 per cent growth for construction overall. And while hospitality, travel and spa took major hits in 2020, the crisis actually further fuelled growth for wellness real estate – which grew 22 per cent, even as overall construction shrank by 2.5 per cent. So from 2017-2020, the wellness real estate market essentially doubled: jumping from $148bn (€128bn, £109bn) to $275bn (€238bn, £203bn.) Seven countries account for 82 per cent of the market: the US, China, Australia, UK, Japan, France and Germany. But all of the top 20 markets have seen incredible 116 spa business HANDBOOK 2021 – 2022

recent growth across the board. Japan and Canada are the two standouts, with 360 per cent and 240 per cent growth respectively. But the US, China, UK, France, Netherlands, Denmark, Switzerland, Singapore, Norway, Italy and Finland all basically doubled their markets. The opportunity is almost everywhere. The sector has grown so fast that the projects are too numerous to properly count. If we estimated that there were 740 projects (either built, partially-built or in development) at year-end 2017, now that number is very conservatively 2,300.

Seize the opportunity Wellness living concepts are happening in every type of residential project imaginable: master-planned communities;

multifamily projects (apartments, condos); urban districts and mixed-use projects; resort/spa-based projects; affordable housing and all kinds of well senior living, co-living and eco-community concepts. Real estate developers are rushing in, but more spa and wellness industry providers need to make sure they’re fully seizing the opportunity to help deliver all the wellness being programmed into new real estate projects. There are big opportunities for wellness and spa hardware providers. All the wellness-focused designers, architects and landscape architects and spa, fitness and wellness equipment and facilities providers have huge new opportunities. At the high-end, whether in individual wellness homes, new urban wellness www.spahandbook.com