Demand for Thermal Complexes Surges by 8.1% Amidst High Returns
From January to August, requests for the construction of thermal spa complexes in Russia saw an 8.1% year-on-year increase, while demand for related franchises grew by 11%. This surge is attributed to rising consumer interest and the high profitability of such ventures. Investments in these projects typically recoup within three years, a significantly faster return compared to the average seven to nine years for commercial real estate. Experts predict this rapid growth in the thermal complex market will continue for another three to five years before reaching saturation.
Throughout January-August 2025, the number of inquiries for developing thermal complexes rose by 8.1% year-on-year, marking a substantial 57.5% increase compared to the same period in 2023, according to calculations by «Therms» Management Company, a specialist in urban resort development and management. Concurrently, Franshiza.ru analysts observed an 11% year-on-year rise in demand for thermal spa franchises over the same eight-month period.
Vladimir Chernys, Head of Retail Real Estate at IBC Real Estate, hails the financial model of thermal complexes as highly efficient, noting that investments can be recouped in as little as three years. He describes this as a «fantastic result,» with project profitability exceeding 30% annually. In contrast, liquid assets in the broader commercial real estate market typically yield 11-14% returns, requiring seven to nine years for payback, according to IBC Real Estate data.
This high profitability is driven by robust demand for thermal spa services. According to Rosstat, Russians spent 29.9 billion rubles on bath and sauna services between January and July 2025, marking a 4-4.5% year-on-year increase. Data from «Platforma OFD» (a fiscal data operator) indicates an 8% rise in the number of purchases for spa, bath, sauna, and thermal complex services year-on-year for the same period, with revenue from these facilities surging by 21%. The average check also increased by 13%, reaching 4.2 thousand rubles.
Analysts suggest that the growing popularity of healthy lifestyles, relaxation, and wellness programs has fueled Russians` increased visits to spa and bath complexes.
Anna Rozhdestvenskaya, an expert at Franshiza.ru, points out that investors are increasingly acquiring sauna and bath franchises for development within tourist clusters. Irina Vasilyeva, General Director of «Martial» resort, confirms that housing developers, commercial real estate owners, and hoteliers are now willing to invest in thermal facilities, viewing this business as a diversification strategy.
However, Ms. Rozhdestvenskaya notes that despite the growth, thermal complexes remain a relatively niche product. According to Nikoliers, Russia currently boasts only 74 thermal complexes, totaling 445,000 square meters. An additional 36 projects, including those from non-specialized investors, are expected to enter the market this year. For instance, «Malevich Baths» is slated to launch in the Moscow region in September, managed by a company associated with Alexander Zadorin, co-owner of the «Aromatny Mir» chain.
Anna Rozhdestvenskaya identifies the high cost of implementation as a significant limiting factor.
Yuri Bychkov, founder of «Therms» Management Company, states that investments for opening thermal resorts start at 80-100 million rubles for smaller formats (from 1,000 square meters). Larger resorts, exceeding 20,000 square meters, can cost upwards of 4 billion rubles to develop, he adds.
Despite the high costs, Igor Kokorev, Director of Strategic Consulting at Nikoliers, anticipates the emergence of 70 new thermal complex projects in the next four years. This expansion would increase the total area of these facilities 2.3-fold, surpassing 1 million square meters. He emphasizes that the market is still far from saturation. Bulat Shakirov, President of the Union of Shopping Centers, believes that thermal spas will continue their rapid development over the next three to five years, aligning with global trends. The Global Wellness Economy Monitor reported the thermal complex market reached $6.3 trillion in 2023, with projections to approach $9 trillion by 2028. However, Irina Vasilyeva cautions that a high pace of openings could eventually lead to market oversaturation and intensified competition.
