We have implemented this with us, even multiple times. On the one hand, we had to surround almost the entire bathroom with drywall (cable routing) and wanted to loosen it up with different heights, depths, and shapes. On the other hand, these niches are part of our "lighting concept."
In total, we equipped 3 niches (along with a spotlight at the tub and LED behind the mirror) with dimmable LEDs - so to speak, the romantic lighting (parallel/alternative to the conventional lighting). Apart from the material, of course, there is additional work during construction, which I would estimate at about 2-3 hours per niche for an experienced fitter - so it is not even particularly expensive.
Independently of the trendy feeling of the client, this results in a really cozy illumination of the bathroom and at the same time saves at least one piece of furniture, since you can of course also store towels or a few nice boxes with shampoo supplies in the niches.
When planning, be sure to consider in advance whether you want to use 12/24 volts; in that case, the power supply should still be installed somewhere.