The shopping mall formula that worked for three decades is dying. Department stores are shuttering, multiplex footfalls are shrinking, and landlords across India are scrambling to fill empty retail bays. Into that vacuum, an unlikely tenant has emerged as the new crowd-puller: the fitness club. What was once relegated to basement floors and back corners now commands street-facing facades, premium square footage, and aggressive rent negotiations. For developers and asset managers rethinking their tenant mix, gyms and wellness centres have quietly become the anchor assets of the post-pandemic era. Rahull Raghuvanshii, Managing Director, Jetts Fitness India shares in an exclusive interaction how fitness clubs are the new real estate investment opportunity and why they are here to stay.
The foot traffic equation has changed
Anchors earn their status by pulling people through the door. Traditionally, that meant a hypermarket or a cinema destinations that justified the drive and guaranteed dwell time. But consumer habits have shifted. Groceries arrive via quick commerce. Films stream at home. The activities that still require physical presence are experiences: dining, socialising, and working out.
A well-run fitness club generates predictable, recurring visits. Members show up three to five times a week, often at off-peak hours that smooth out a property’s footfall curve. They arrive early morning, return post-work, and increasingly bring family on weekends for group classes or swimming. That regularity is gold for food courts, cafes, and lifestyle retailers nearby.
Developers have noticed. Mixed-use projects in Gurugram, Pune, and Bengaluru are now designing floor plates specifically to accommodate large-format gyms, complete with higher floor-to-ceiling heights, reinforced slabs for heavy equipment, and dedicated service lifts. The fitness tenant is no longer an afterthought it’s baked into the blueprint.
Wellness is a lifestyle, not a line item
India’s fitness market crossed ₹35,000 crore last year and shows no sign of slowing. A younger, urban demographic treats gym memberships not as discretionary spending but as essential self-care, on par with health insurance or a good mattress. Boutique studios spinning, pilates, CrossFit and martial arts command premium pricing and attract aspirational consumers who spend freely at adjacent retail.
This spending halo matters. A member who finishes a morning workout is likelier to grab a cold-pressed juice, browse athleisure apparel, or book a salon appointment in the same complex. Co-location creates convenience, and convenience drives transactions. Smart landlords are curating tenant clusters around wellness: physiotherapy clinics, sports nutrition stores, recovery lounges offering cryotherapy and infrared saunas. The result is a micro-ecosystem where fitness acts as the gravitational centre. Retailers benefit from a captive, health-conscious audience. The fitness operator benefits from visibility and shared amenities. And the landlord benefits from diversified income and stronger tenant stickiness.
Lease structures reflect the new reality
Fitness operators sign long leases, often ten to fifteen years, with substantial fit-out investments that make relocation painful. That commitment provides income stability in a market where fashion retailers may churn every three years. Lenders and investors view stabilised assets with gym anchors more favourably, translating into better valuations and refinancing terms.
Rental models are evolving, too. Revenue-share arrangements, common in multiplex deals, are gaining traction with fitness chains that want aligned incentives. Some developers offer rent holidays during fit-out, recognising that a flagship gym opening on day one of a project launch pulls marketing weight worth far more than a few months of forgone rent.
The bottom line for developers
Fitness clubs are no longer amenities they are demand generators. For a residential township, an on-site gym elevates pricing and absorption. For a commercial complex, it differentiates the asset in a crowded leasing market. For a struggling mall, it fills large vacancies with a tenant that actually wants abundant parking, high ceilings, and ground-floor visibility.
The playbook is straightforward. Identify operators with strong unit economics and brand equity. Offer flexible deal structures that acknowledge fit-out intensity. Design spaces that accommodate evolving formats, from traditional gyms to recovery-focused wellness centres. And cluster complementary tenants to amplify the lifestyle proposition.
As urban Indians prioritise health over accumulation, the buildings that house their aspirations must adapt. The treadmill, it turns out, is pulling more weight than the cash register. Developers who recognise this shift will anchor their portfolios not around what people buy, but around how they choose to live.
Source: The Times of India
