India’s senior living market is expanding beyond established metropolitan centres, with Tier-II cities and spiritual hubs emerging as potential growth destinations, according to a report by proptech firm Square Yards.
Titled Expanding Horizons: The Next Growth Markets for Senior Living in India, the report identifies 15 priority cities that could shape the next phase of growth in senior housing. The assessment considers factors such as healthcare access, connectivity, 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. The report attributes the rising demand to an ageing population, the growing prevalence of nuclear families, migration, and changing household structures. These trends are driving interest in organised residential communities that combine independent living with healthcare, safety and social engagement.
Tier-II cities and spiritual hubs gain traction
While Bengaluru, Hyderabad, Pune, and Chennai remain important senior living markets, cities such as Coimbatore, Vadodara, Nashik, Kochi, and Mysuru are gaining prominence as potential retirement destinations.
The report also identifies spiritual centres such as Ayodhya, Varanasi, Haridwar, and Tirupati as emerging retirement and second-home markets. These destinations offer an additional draw through cultural familiarity, community networks and spiritual aspirations.
Tier-II cities, meanwhile, offer relatively affordable housing, improving healthcare infrastructure and a more manageable pace of life, making them attractive alternatives to expensive metropolitan markets.
However, the expansion of senior living into new markets will depend on the availability of reliable healthcare partnerships, emergency response systems, professional operators and transparent service models. These factors will be critical to building confidence among senior residents and their families, the report said.
Senior living evolves beyond residential real estate
The expansion into new geographies reflects a broader shift in retirement preferences, with senior living increasingly emerging at the intersection of residential real estate, healthcare, hospitality, and wellness.
According to the report, developments that offer only age-friendly apartments may struggle to meet the expectations of an increasingly discerning senior population. Future communities will need to support mobility, preventive healthcare, social engagement and day-to-day independence, while ensuring access to medical assistance when required.
“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. The future of senior housing in India will be defined not only by unit count but by how intelligently developments respond to care needs, accessibility and social connectivity. Integrating reliable medical access with dignified lifestyle ecosystems will be the benchmark for the sector’s long-term scale and credibility,” said Tanuj Shori, founder and CEO of Square Yards.
Wellness-led amenities to drive differentiation
As older homebuyers increasingly prioritise healthy ageing, independence and quality of life, projects integrating preventive healthcare, physiotherapy, fitness programmes, nutritious dining, mental wellness, and community engagement into everyday living could gain a competitive advantage.
Such offerings can help developers build trust, strengthen brand positioning, improve resident retention and generate recurring revenue through services, making wellness a core business proposition rather than an add-on amenity, the report added. “Senior living is increasingly about value, not just location. Many people are willing to move to smaller centres for wellness-led communities with rich amenities, better care and a more comfortable lifestyle that fits their budget,” said Sunita Mishra, vice-president, Research & Insights, Square Yards.