Tier-II cities, spiritual hubs, emerge as new growth markets for senior living in India
Coimbatore, Vadodara, Ayodhya, Haridwar top choices: tier-2 cities offer affordable housing, slower pace; spiritual hubs preferred for cultural familiarity, community ties
India’s senior living market is expanding beyond major metropolitan centres, with Tier-II cities and spiritual destinations emerging as potential growth markets for retirement housing, according to a report by real estate platform Square Yards.
The report, 'Expanding Horizons: The Next Growth Markets for Senior Living in India', identifies 15 priority cities that could drive the next phase of senior housing development. The assessment considers factors such as healthcare access, connectivity, housing affordability, climate and social infrastructure.
India’s senior housing market is estimated to be worth $4.31 billion in 2026 and is projected to reach $11.43 billion by 2031, reflecting growing demand for organised residential options that combine independent living with access to healthcare, safety and community facilities.
The report attributes the shift to an ageing population, the increasing prevalence of nuclear families, migration and changing household structures.
Coimbatore, Vadodara among emerging markets
While Bengaluru, Hyderabad, Pune and Chennai remain important markets for senior living, cities such as Coimbatore, Vadodara, Nashik, Kochi and Mysuru are gaining prominence as potential destinations for older homebuyers.
The report also identifies Ayodhya, Varanasi, Haridwar and Tirupati as emerging retirement and second-home destinations, reflecting the appeal of spiritual centres among people planning their later years.
Also Read: South-West Bengaluru’s housing supply grows, but what does it mean for homebuyers?
Tier-II cities offer relatively affordable housing, improving healthcare infrastructure and a more manageable pace of life. Spiritual destinations, meanwhile, provide an additional draw through cultural familiarity, community connections and retirement preferences, the report said.
However, the expansion of senior housing into these markets will depend on the availability of reliable services. Healthcare partnerships, emergency response systems, dependable operators and transparent service models will be essential to building confidence among residents and their families.
Healthcare, wellness to shape project offerings
The report points to a broader shift in the senior living segment, with housing increasingly intersecting with healthcare, hospitality and wellness.
Developments offering only age-friendly apartments may fall short of the expectations of older residents seeking greater independence alongside access to care and social engagement. Future projects will need to address mobility, preventive healthcare and everyday support while ensuring that medical assistance is accessible when required.
Also Read: Affordable housing is real casualty of India’s property boom: Niranjan Hiranandani
Wellness-led amenities could also become a key differentiator as developers compete for a larger share of the market. Facilities and services such as physiotherapy, fitness programmes, nutritious dining, mental wellness initiatives and community activities could help meet the needs of seniors prioritising healthy ageing and quality of life.
Such offerings could also strengthen developers’ brand positioning, encourage resident retention and create recurring revenue opportunities through services, the report said.
Developers focus on autonomy, quality of life
“India is observing the emergence of a multi-billion-dollar asset class driven by a generation of seniors, seeking not only assistance but also autonomy, specialised wellness and a high quality of life,” said Tanuj Shori, founder and CEO of Square Yards.
He said the long-term growth of senior housing would depend on how effectively developments address care needs, accessibility and social connectivity.
Also Read: Why Bengaluru is facing a paying guest housing crisis
Sunita Mishra, vice-president of research and insights at Square Yards, said some homebuyers were willing to move to smaller cities for wellness-led communities offering better care, amenities and a comfortable lifestyle within their budgets.
The report suggests that the next phase of senior living growth will depend not just on where projects are located, but also on the quality of healthcare access, services and community infrastructure they provide.
