Formerly considered pseudoscience, the wellness sector could be worth $913 billion by 2028, according to the Global Wellness Institute. For a once-maligned industry, this is a big advancement and there are many ways to tap into the trend.
Wellness Luxury Defined
On Miami’s Bay Harbor Islands, The Well is a development under construction and will include 66 residences. A hydroponic herb garden will provide fresh produce that can be used to prepare meals utilizing the equipment provided by a fully-stocked pantry, which will include sous-vide cookers, an air fryer, and a Nutribullet. Replenishing the garden will be as easy as planting a pellet. In the kitchen, the water tap pours out sparkling or plain water at either room temperature or refreshingly chilled. Infrared panels provide an at-home sauna and showerheads can be used for lymphatic drainage. A meditation nook is the perfect spot to start the day with a quiet moment. A 13,000-square-foot wellness facility is the spot for yoga classes and more. It will also be the place to enjoy acupuncture, Vitamin Therapy, vibrational therapy, and other therapies.
“We’re going to survey everyone before they move in, and then six months later again. We think that will prove that we can make you healthier by living at The Well,” says The Well’s chief creative officer and co-founder Kane Sarhan.
Wellness Projects on Trend
This declaration won’t be put to the test until the middle of 2025, when the first residents will move into the immersive, 24/7 residential experience. The New York City-based company is embarking on a new, wider trend as it expands from a spa and gym to a residential wellness community. The Global Wellness Institute says “wellness real estate” is a growing market that increased worldwide from $225 billion in 2019 to $438 billion in 2023.
The Well has additional projects planned according to Sarhan. These include one in Mexico, another in Europe, and two in the United States. The model they plan to follow is that of SHA (which means sanus per aquam, Latin for “health through water”), a luxury wellness retreat in Spain on the Mediterranean coast, and Six Senses, a wellness-focused luxury hotel and resort chain owned by the InterContinental Hotels Group. Run by Neil Jacobs, who is based in Singapore, the InterContinental Hotels Group has two dozen wellness property developments either planned or already open across the globe. In the aftermath of the pandemic, Jacobs says there has been an increase in how many development partners have approached him to do business.
Responding to Client Demand
SHA in Alicante Spain opened its first outpost in 2008. SHA is a subsidiary of developer AB Living. Alejandro Bataller, vice-president of AB Living says that the frequent guests at SHA started to inquire if they could buy a villa or suite. Due to space constraints, only a dozen or so residences could be provided. Based on this experience, AB Living has made residences the focus of its new site in Mexico with the construction of 37 homes. A spa clinic that includes a fitness room, padel and tennis courts, and a private beach will be available to the residents alongside their own facilities.
The Drawbacks
Wellness real estate often commands a premium. The price of The Well projects is 30-40 percent more than the local competition’s $1,500 per square foot. Service charges for a residence can be pricey since they are expensive to operate. For example, The Well’s apartments have a service charge of $2 per square foot. Sarhan explains that the membership club will help “spread costs” and won’t be fully dependent on the residents.
Cindy Palusamy of consultancy CP Strategy argues that there are potential problems with this sort of project. With two decades of experience in the wellness industry, she receives numerous offers to work on residences.
“None have been interesting enough to get me to sign on yet, as most developers follow the simple trends. If you’re going to take two stories of a high rise and make it this ‘quote, unquote’ wellness center, how are you actually going to staff it with true experts? If you have the money and the best doctor is 10 miles away, you’re going to go to that doctor, so you’ll ask. ‘Why am I paying for that [on-site wellness center]?’ The idea that convenience in this space trumps all doesn’t hold for me,” she explains.
