How Wellness Real Estate Can Boost Apartment's Value

That's why you can't afford to ignore tenant wellness if you're a developer or property manager. Here, we'll explore wellness real estate, focusing on how integrating health and fitness amenities can boost your property's value.

Understanding Wellness Real Estate

Wellness real estate is no longer just a fad. It's a growing trend, with the global wellness real estate market projected to reach $912.6 billion by 2028, up from $438.2 billion in 2023, as the demand for wellness-focused apartments grows.

But what is wellness real estate exactly? Well, wellness real estate focuses on designing, constructing, and managing residential and commercial properties that prioritize the overall health and well-being of occupants.

While that's a broad definition open to interpretation, here are some common aspects of many buildings designed with wellness in mind:

• Holistic approach: Prioritizing the physical, mental, emotional, and social well-being of tenants
• Healthy materials: Using non-toxic and sustainable materials such as recycled glass and bamboo during construction
• Biophilic design: Incorporating elements of nature into the design, such as indoor plants, gardens, and full-length windows that maximize natural light and provide expansive views
• Community spaces: Including shared spaces that promote social interactions, such as outdoor sitting areas and community gardens
• Fitness facilities: Providing amenities that encourage physical activity, such as swimming pools, yoga studios, and gyms

Key Trends Shaping Wellness Real Estate

Real estate is no longer just about providing visually pleasing, functional, and expansive spaces. As the wellness community grows and more consumers consider buildings that prioritize wellness as an essential rather than a nice-to-have perk, here are key wellness trends to keep an eye on:

Increasing Demand for Health-Centric Amenities

More tenants are prioritizing wellness features as they become more conscious about the impact of living spaces on their health. As a result, when deciding where to live, people are seeking buildings with health-focused amenities like fitness centers, yoga studios, and green spaces.

This presents a huge opportunity for developers and property managers who integrate health-centric amenities into their properties.

The Rise of Virtual Fitness and Digital Wellness Solutions

In recent years, particularly post-pandemic, there has been a spike in the popularity of virtual fitness programs. In fact, according to a Statista study, the number of digital fitness customers is expected to rise to nearly 227 million in 2029, up from 145 million in 2023 — an increase of nearly 57%.

The popularity of digital wellness solutions is also expected to rise as devices like wearable fitness devices and digital fitness apps become an integral part of daily life for most people.

Developers and property managers can capitalize on this trend by providing tenants with virtual fitness programs or fitness apps for flexible workouts.

Sustainability and Biophilic Design in Real Estate

Sustainability is becoming a top priority for many people, with 78% of American consumers stating that they consider a sustainable lifestyle important. As a result, biophilic design, which focuses on incorporating natural elements into living spaces, has become ubiquitous in new real estate developments.

Developers can take advantage of this wellness trend by using sustainable materials during construction, providing green spaces, and installing floor-to-ceiling windows that provide ample natural light to enhance the living experience.

The Role of Amenities and Benefits of Wellness-Enhanced Properties

Wellness amenities can be incredibly beneficial for both developers and tenants. Let's explore the key benefits of the integration of wellness in real estate design.

Attracting Health-Conscious Renters

Healthy living starts at home. That's why it should come as no surprise that nearly five out of ten renters want to reside in an apartment with a gym or fitness center, according to a RentCafe Survey. Additionally, about three out of ten renters consider the lack of a gym in an apartment a deal breaker.

Want to attract fitness enthusiasts? Providing apartments with fitness amenities can help you draw health-conscious tenants who wish to stay physically fit. To meet this demand, nearly seven out of ten large U.S. apartment buildings already have a fitness center on-site.

And that's not all. Renters also want to reside in healthy homes, with 65% of renters saying healthy building certifications would impact their leasing choices. Consider getting certifications like the Fitwell or WELL Building Standard to appeal to discerning house hunters.

Increasing Property Value & Market Competitiveness

Renters aren't simply looking for a place to live. They're also seeking homes that offer comfort and relaxation. Providing wellness amenities can help your apartment stand out in a competitive rental market and attract selective buyers.

And best of all? Offering wellness amenities can significantly boost your property's value. For instance, a Zillow report revealed that homes with meditation rooms sold for 1.7% more than similar properties.

So, while investing in wellness amenities may come at a high initial cost, it may also provide a massive return on investment in the long term.

Improving Tenant Satisfaction & Retention

Most people feel much better after exercising, interacting with others, or spending time in nature. Your tenants are no different.

Properties with wellness amenities that encourage regular physical activity and social interaction can significantly improve tenant satisfaction and quality of life. Some complex amenities that can have a huge positive impact on overall well-being include:

• Fitness centers
• Meditation spaces
• Virtual fitness solutions that offer on-demand fitness classes
• Community wellness programs

These amenities can also reduce the apartment turnover rate, as residents are more inclined to stay in apartments that fulfill their wellness needs. This can be a massive win for your business as the cost of losing a tenant is a whopping $4,000 on average, according to a recent Zego report.

Design Considerations for Wellness Real Estate

Designing a wellness-focused property isn't a single-step process. It requires a meticulous approach that takes into account various wellness aspects. While there are many things to consider, here are the key design considerations for wellness real estate:

Creating Spaces That Promote Movement and Relaxation

Nowadays, many people work desk jobs that require minimal movement. In fact, according to an American Heart Association study, over eight out of ten of all U.S. jobs are primarily sedentary, putting people at risk of heart disease.

Given that many people work from home nowadays, multifamily properties focused on wellness should provide spaces that promote movement to improve physical well-being. These spaces could include playgrounds, sports courts, and fitness centers.

Wellness-focused properties should also provide areas where tenants can take a breather from work or relax after a long workday to improve their mental and social well-being. These could include community areas and green spaces.

Integrating Nature and Sustainable Materials

Most people have an innate desire to connect with nature — a phenomenon known as biophilia. As a result, biophilic design is an essential aspect of wellness real estate.

Incorporate biophilic design elements into indoor spaces, such as indoor plants, sustainable materials, and expansive windows, to improve natural lighting. These elements can make your property more visually appealing and enhance tenant wellness by lowering stress levels and improving cognition.

Flexible Fitness Spaces for Diverse Wellness Needs

Many people consider fitness important. According to a McKinsey & Company survey, four out of ten Americans consider it a top priority. However, people's fitness needs vary. While some people may want to lose weight, others may want to build muscle. That's why it's crucial to provide flex spaces in multifamily properties that cater to different wellness needs.

For instance, some excellent resident wellness ideas for people looking to lose weight could include providing spaces for dance classes or cardio. On the other hand, people with demanding schedules looking to gain muscle might prefer on-demand fitness classes that offer flexibility.

Data-Driven and Technology Integration

Nine out of ten businesses consider data critical to their operations. And with good reason. Data helps companies make informed decisions. As a result, it's becoming an important consideration when designing wellness-focused apartments.

Integrating technology can enable property managers to leverage data and significantly improve occupant wellness. For instance, you could provide tenants with a fitness app that gathers vital fitness metrics and helps them monitor and refine fitness goals.

Successful Implementations: How Fitness On Demand Elevates Wellness Real Estate

As the global wellness economy grows rapidly, wellness real estate is no longer just a buzzword mentioned at real estate conferences — it's emerging as a new standard that promises to transform the real estate industry.

Integrating wellness amenities into your facility can be incredibly beneficial. It can help you attract health-conscious renters and boost your apartment's value. Wellness amenities can also improve tenant satisfaction and retention. So, you can't afford to treat them as an afterthought.

Fitness On Demand makes integrating fitness-focused amenities hassle-free. We offer various fitness solutions tailored for apartments, including a customizable fitness app, digital signage, and over 1,200 on-demand fitness classes from reputable fitness brands.

Ready to learn how our solutions can help you boost occupancy rates and improve tenant wellness? Schedule a free demo today to meet with one of our experts.