- The wellness trend is attracting investors seeking portfolio diversification.
- Recent M&A activity and strategic partnerships in wellness-related real estate make this a sector to watch.
Investors seeking to broaden their portfolios are identifying and capitalising on emerging asset classes. One example is wellness-related real estate. We expect increasing investor interest in this subsector in response to demographic changes and evolving consumer preferences. According to the Global Wellness Institute, the wellness-related real estate subsector is expected to grow at a 15.8% CAGR over the next three years and exceed $900bn in value by 2028. This will have implications for the entire commercial and residential real estate industry. Given the close ties between wellness and consumer preferences and the desire for enhanced experiences, this wellness trend is especially relevant in the residential, hospitality and leisure sectors.
An immediate indication of the enduring characteristics of this theme is the growth in wellness-oriented residential sectors, especially in senior housing. It’s no longer enough to simply have suitable accommodation—consumers are increasingly seeking high-quality living environments with design elements that promote holistic wellbeing and encourage social interaction.
The focus on wellness within the hospitality sector has already begun to grow. The hotel and travel industries are experiencing a robust increase in wellness-oriented services, with luxury wellness retreats leading the trend.
In the post-pandemic environment, consumer and industry awareness of how external environments can affect physical and mental wellbeing is driving demand for these retreats. For example, Therme Group, a developer of wellbeing resorts, plans to expand further in Europe as well as in the UK, North America, Asia and the Middle East. In December 2024, Therme announced the acquisition of Therme Erding, a wellbeing destination in Germany. The Well, a New York-based wellness club, partnered with hospitality group Auberge Resorts Collection to add wellness spaces to some of Auberge’s global locations. And the Maybourne Hotel Group has partnered with two prominent wellness experts to create an exclusive wellness offering.
As the wellness sector continues to evolve, we expect it to attract substantial investor interest and present opportunities for those looking to diversify their investment portfolios. The sector’s alignment with long-term demographic and health trends ensures its prominence in future investment strategies. Investors may want to focus closely on this theme.
