News: Senior Living: Luxury Metros vs Value Tier-2 Markets-23-09-2026

India’s senior living sector is moving away from a single template, with Tier-1 and Tier-2 cities serving different buyers and offering different opportunities to developers and operators, a report by Colliers India in association with Primus Senior Living said on September 23.

The report, titled The Future of Ageing and Longevity Economy in India, 2026, said the sector is at an inflection point, shifting from a real estate-led model to a longevity ecosystem combining housing, healthcare, hospitality and community building. India’s population aged 60 and above is projected to grow from nearly 149 million (10.5% of the total) in 2022 to 347 million (20.8%) by 2050, a CAGR of approximately 3%. The market is estimated at $12 billion.

Two markets, two models

Tier-1 cities suit luxury senior living, the report said, since high land costs are matched by demand from high-net-worth individuals, affluent retirees, former CXOs and NRI parents who are less price-sensitive on healthcare, convenience and quality of life. The metro service model involves high capital and operating expenditure and pairs five-star hospitality with clinical care: concierge services, valet parking, fine dining with personalised geriatric nutrition, smart-home automation and dedicated 24/7 ICU stabilisation bays.

Tier-2 cities offer lower land costs, quality tertiary healthcare, moderate climates and less congestion. Buyers there are upper-middle-class households, successful local professionals and seniors returning to hometowns from metros. They want premium living but watch long-term cash flows. The model typically involves moderate capex and moderate-to-high opex, with a focus on active ageing through health clubs, preventive wellness programmes and tie-ups with multispecialty hospitals.

Colliers India named Coimbatore, Kochi, Mysuru and Visakhapatnam in the south, and Jaipur, Chandigarh, Mohali, Panchkula and Dehradun in the north as promising Tier-2 markets, with Goa, Bhubaneswar, Siliguri, Guwahati, Indore and Nagpur as other potential destinations. Demand is driven by ageing demographics, children migrating to metros and overseas, greater financial independence among seniors, smaller families and a preference for community living with healthcare support.

What the industry says

Adarsh Narahari, founder and Managing Director, Primus Senior Living, said senior living is moving "from necessity to aspiration", with seniors and families seeking community, dignity and an active life.

Digbijay Das, Senior Director, Valuation, Advisory Services, Colliers India, compared the moment to what organised retail or co-living saw a decade ago. He said the opportunity calls for a different underwriting approach that puts micro-market readiness, operating capability and long-term trust ahead of land economics and development margins. Colliers expects branded and listed developers to step up participation in both tiers, across active retirement communities, assisted living and higher-care facilities.

Das told Hindustan Times Real Estate that Tier-2 buyers tend to be more value-conscious and have stronger emotional ties to their hometowns or regional culture, while metro buyers prioritise lifestyle amenities, quality and quick access to professionally managed healthcare. In most Tier-2 cities, the mass-premium sweet spot is likely to be units priced meaningfully below comparable Tier-1 communities while remaining affordable for financially independent retirees and NRI-linked families. Buyers increasingly weigh the total cost of living, including healthcare, maintenance, wellness and care services, he said, so pricing must align the real estate with the service offering.

He added that long-term value comes from occupancy stability, recurring service revenues and operational brand strength, and that investors should treat the asset class as a long-duration operating platform, not a short-term real estate play.

Aakash Ohri, MD and CBO, DLF, said rising life expectancy and better healthcare are producing a financially empowered, digitally connected group that seeks purpose, connection and independence beyond comfort and care. DLF is expected to launch a luxury senior living project in Sector 63, Gurugram, with estimated sales potential of around Rs 2,000 crore.

Who is buying

Narahari said that in Bengaluru or Mumbai, many residents are seniors whose children have moved away, often abroad. In Tier-2 markets it is almost the reverse: NRI families or children settled in metros want a safe, well-run home for parents in their city of origin. The buyer is often an adult child living elsewhere, for whom healthcare response time matters more than brochure amenities.

Primus currently operates in Bengaluru, Mumbai, Pune, Chennai and Hyderabad. Narahari said Tier-2 is on its radar and any entry would be designed around those markets, not a scaled-down metro product.

Rishabh Periwal, Senior Vice President, Pioneer Urban, said Tier-1 hubs such as Gurugram are seeing luxury, service-led communities, while Vrindavan, Coimbatore, Dehradun and Varanasi offer opportunities because of lower land costs and improving healthcare.

Anil Godara, Managing Director, J Estates, said enquiries largely come from people aged 50-65, including couples and seniors whose children live in other cities or overseas, drawn by a secure, socially engaging community, preventive healthcare, hospitality-led services and professional support.

Ankur Gupta, JMD, Ashiana Housing, said senior living is no longer confined to a specific age or life stage but is about living well through the journey of ageing.

Challenges and ownership models

The biggest hurdle in Tier-2 cities is not land but building a sustainable operating ecosystem. Many such cities have gaps in specialised geriatric healthcare, emergency care integration and trained caregiving staff, and recruiting, training and retaining skilled employees is a major challenge.

The report said outright purchase still appeals to Indian consumers because of a deep-rooted preference for wealth preservation, but rental, lease and deferred-ownership structures could improve affordability and widen the addressable market. Allowing family members above a reasonable age threshold to live in these communities could also help adoption, since many purchases are made jointly by couples. Colliers India expects hybrid ownership structures backed by transparent buyback, resale and service frameworks to prevail over pure rent-only or sale-only models.