Wellness communities are on the rise; real estate firms, investors and the public are starting to see the benefits – both financial and physical – of creating and living in areas dedicated health. But what are the challenges faced in this budding industry, and how successful will these communities be?

The Global Wellness Institute (GWI) estimates that wellness real estate was a US$118.6bn (€107bn, £95bn) sector in 2015 – a healthy 19 per cent increase since 2013. In response to this, the GWI launched an initiative last year focused on wellness communities – defined, in part, as those developed with proactive health and wellness, ecological sensitivity and social connectivity in mind. “Models for wellness real estate are evolving from places we’d like to visit, to places we can now work, play, heal, learn – and ultimately – places we can live,” says Mia Kyricos, who is chair of the initiative and founder of strategic advisory firm Kyricos & Associates.

Ingo Schweder, CEO of GOCO Hospitality, which is developing several wellness communities, says the movement is becoming more mainstream. “The demand for wellness communities is growing worldwide, because individuals are now seeking a combination of healthy lifestyle, sustainable environments and dedicated service at their fingertips,” he says. “We’re witnessing an increase in health and wellness consciousness throughout the world, which is creating and supporting this change of mindset.”

‘Major market opportunity’
Kyricos says she too expects to see growth in the sector, as both the health benefits and business opportunities become more apparent. “For the first time in years, there is authentic consumer demand, and there’s very little supply,” says Kyricos. “This isn’t just an under-served market for a select few; it’s a major market opportunity that spans all income levels and geographies.”

Wellness communities typically include facilities such as places to connect socially and outdoor fitness amenities, and are also usually built to environmental standards, but spa and wellness facilities still feature front-and-centre in every major development. “With the development of this market, spas and the spa lifestyle have the opportunity to serve at the heart of the community,” explains Kyricos.

The pivotal nature of spa in wellness communities also means that these communities are an untapped area of growth for spa operators and suppliers.

And importantly, this is a way for spas to move from being special-occasion pampering for the few, to being places of daily healing and preventative health for an entire community. “(Spas) will serve a critical role in wellness communities, and without them, it will be hard for the community to deliver on its overall value proposition of holistic health and wellness,” explains Kyricos.

A closer look at Asia
While there’s widespread interest from around the world in wellness communities, each region has its own nuances – and challenges. We begin this multi-part series in Asia, where we take a look at some of the biggest projects in the works.

Samantha Foster, director at Bangkok-based Destination Spa Management, says in China, pollution problems and a high-stress business culture have created a strong demand for wellness communities.

“China has the same wellness drivers as the rest of the world – but on steroids,” says Foster. But despite this demand, converting wellness communities from concept to reality is a slow process. “Developers feel that adding wellness to a development will provide them a competitive advantage in the increasingly tough real estate market,” Foster says.

However, part of the problem in Asia may be that there is a lack of evidence proving the success of the concept. “Investors get cold feet when they see the greater expense and complexity relative to a normal development, and want to see proof of return on investment – which of course doesn’t exist yet,” Foster explains. “I believe that as soon as the market sees the first true wellness community in action, many will quickly follow. The region just needs one champion project, and it will be solid growth from there.”