India’s senior living market is expanding beyond major metropolitan cities, with Tier-II cities and spiritual centres emerging as potential destinations for retirement housing, according to a new report by proptech firm Square Yards.
The report, titled Expanding Horizons: The Next Growth Markets for Senior Living in India, identifies 15 priority cities that could drive the next phase of growth in the sector. The assessment considers factors such as healthcare access, connectivity, housing affordability, climate and social infrastructure.
India’s senior housing market is estimated at USD 4.31 billion in 2026 and is projected to reach USD 11.43 billion by 2031. The report attributes the growing demand to an ageing population, the rise of nuclear families, migration and changing household structures, which are increasing the need for organised housing that offers safety, healthcare access and community living.
Tier-II cities and spiritual centres gain ground
While Bengaluru, Hyderabad, Pune and Chennai remain established senior living markets, cities such as Coimbatore, Vadodara, Nashik, Kochi and Mysuru are gaining prominence as potential growth centres.
The report also identifies spiritual destinations, including Ayodhya, Varanasi, Haridwar and Tirupati, as emerging retirement and second-home markets. These cities could attract senior citizens seeking cultural familiarity, community connections and proximity to religious centres.
Tier-II cities offer relatively affordable housing, improving healthcare infrastructure and a slower pace of life compared with major metropolitan areas. Spiritual hubs, meanwhile, appeal to retirees looking for a combination of lifestyle preferences, cultural ties and a sense of belonging.
However, the report highlights the need for stronger healthcare partnerships, emergency response systems, reliable operators and transparent service models to build confidence among senior residents and their families.
Healthcare and wellness to shape project development
The expansion into new markets reflects a shift in senior living from conventional age-friendly housing towards integrated residential, healthcare, hospitality and wellness services.
According to Square Yards, developers will need to look beyond accessible apartments and incorporate features that support mobility, preventive healthcare, social interaction and independent living. Access to medical assistance and dependable care services will also be important in meeting the expectations of residents and their families.
“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 added that the sector’s long-term growth would depend on how effectively developments address care requirements, accessibility and social connectivity, with reliable medical access and lifestyle amenities becoming key benchmarks.
Wellness-led amenities emerge as differentiators
With the market projected to reach USD 11.43 billion by 2031, wellness-focused amenities could become a key differentiator for developers seeking to expand their presence in the segment.
The report identifies preventive healthcare, physiotherapy, fitness programmes, nutritious dining, mental wellness and community engagement as features that could help projects stand out. Integrating these services into everyday living could also strengthen resident retention and create recurring revenue opportunities for developers.
“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 of research and insights at Square Yards.
The report suggests that the next phase of growth will depend on developers' ability to combine affordability with quality healthcare, dependable services and opportunities for active social living. As demand evolves, the sector is likely to place greater emphasis on integrated communities designed around the changing needs of India's ageing population.
