Sport Life Group

Excitement for the construction of gyms and pools is justified by demand

November 30, 2017
Commertial Property

Fitness is getting more popular every year and health industry experiences a great revival. Today ten largest fitness markets accumulate over 80% of market value.

In addition, one third of the global market monetary volume belongs to the U.S. 

The world trend of healthy lifestyle is flourishing bringing million profits. In this context sports clubs become an integral part of infrastructure and new construction projects. Developers choose network operators with a sound reputation. 

A number of investment analysts note: investments in construction of buildings with pools are optimal for profitable investments. And developers practically understand the importance of non-price instruments that would help to make their constructions competitive. This is about the related infrastructure of non-residential and office purpose that makes an object more attractive. 

Obviously, pools in one building with offices, residential space or shopping centre have a strong effect of extra cost for leaseholders who are attracted by space with “annex”. In addition, an owner wouldn’t come off the loser as pool spaces are not designed and couldn’t be rented for other purposes. Vitaliy Kuchynskyi, developer in Really Building company, considers that a good developer should attract partners who provide a quality level of infrastructure as this increases the customer loyalty and influences sales level. 

The problem is the operators of industry and sports cannot always offer a high-quality and affordable service. How can the developers not to be trapped? The recipe is simple: start business relationship only with the proven market players, firstly with large network operators with many years of experience and a good reputation. The network of fitness clubs Sport Life is of that kind and as a long-standing practice shows the partnership with it is profitable for both building owner and developer. 

“Looking at attendance our entertainment centre involves a certain difficulty as this is the day off complex, — informed Oleksiy Romanets, manager of the entertainment centre Blockbuster, where Sport Life fitness club is located. — Fitness helps to fill the complex during working days in the morning and evening when people do sport and generate a flow. Unfortunately, the operating costs of fitness centre are increasing and cost escalation exceeds income growth at the moment, as a jump in utility prices reduces consumer purchasing power that is a major drive of commerce. Efficiency suffers and we are constantly forced to apply energy saving methods. Having talked with the experts of Sport Life company it's a comfort to know that we deal with the professionals concerning the issues of energy saving and efficiency. Sport Life is a leader of fitness industry market and it’s difficult today to find more qualified company that could manage the club better”. 

In this context, it is important to note that the very fitness clubs possessing aqua zones are a powerful “anchor”. As there are very few pools in Ukraine: about half a thousand considering those that work intermittently. This is not enough for the country that has more than 40 million inhabitants. But in recent years the situation is changing. The pools with a clearly defined system that can not only attract people to sports, but also partners to business, join a number of pools working in different parts of the country. 

“Sport Life is the largest network of ultra-modern pools in Ukraine, — says Dmytro Yekimov, founder of the group of companies Sport Life. 

In the assessment of Dmytro Yekimov the network is rapidly developing despite the crisis. Sport Life is ready for both negotiations on a long-term lease of premises from 1 thousand sq. m and more and construction of new ones. According to forecasts of business analysts the future of business industry in Ukraine is quite attractive: potential available market may amount to billions of c.u., as demand is steadily growing by several % a year, profitability of fitness business — up to 25% per annum, and each new club of the network provides a full return after 3-5 years of work.