Summary of this article
Retiring in big cities means higher living costs, including rent, education, and medical expenses, compared to smaller cities.
Social infrastructure, pollution, and traffic in big cities are key concerns for retirees.
Proximity to family and close relatives is crucial; staying near loved ones can be a deciding factor in choosing a retirement location.
By Anatharam Varayur
City infrastructure is often thought of in terms of offices and metros. Less talked about is how this same infrastructure wave is reshaping where India’s elders choose to live. In many Tier-2 and Tier-3 cities, roads, rail, expressways and civic upgrades are quietly turning into a new kind of enabler: the infrastructure that makes senior housing viable, desirable and future-ready.
The organised senior housing market in India is still modest in size but growing fast. Current estimates place the demand at 18-20 lakh units, with penetration around 1 per cent.
Meanwhile, top-tier developers report that some 60 per cent of senior living demand emanates from Tier-2 and Tier-3 cities.
This combination of demographic need and shifting geography opens a unique window: ageing becomes an asset, a rationale for building and living in places with strong infrastructure, comfort and community.
What makes infrastructure such a key driver? Consider three linked dynamics.
First, transport connectivity; a metro line or expressway within five to 10 kilometres of a residential enclave means elders have safe access to hospitals, social activities and family visits.
Second, civic infrastructure such as water supply, power reliability, walkable paths and local health centres reduces everyday friction, especially important for older residents.
Third, employment and mixed-use zones nearby ensure that the neighbourhood remains lively, secure and well-maintained, rather than isolated.
Take the case of a city like Coimbatore, which is emerging as a senior-living hub. As one industry observer notes, “its accessibility to medical facilities as well as its climate” are drawing senior communities. Combine that with expressway links and upcoming service-sector investment, and the infrastructure story becomes apparent.
In parallel, housing demand in smaller cities is rising. Across India’s top 15 Tier-2 cities, housing sales rose about 4 per cent in 2024, while sales value grew 20 per cent to Rs 1.52 lakh crore and infrastructure development is singled out as a major underlying cause. For senior living, this translates into opportunities: lower land costs, better value, and quality of life that resonates with an ageing generation looking for community and convenience.
Why are Tier-2 and Tier-3 cities becoming favourite addresses for senior living?
The price-to-value ratio is more favourable. Homes cost less in metro peripheries.
It is vital that the pace is peaceful as seniors often seek a quiet environment coupled with strong support systems.
Multi-age designs, where children, parents and grandparents can live in proximate but distinct spaces, create inter-generational communities that thrive.
Infrastructure supports this by enabling movement, access and safety for all seamlessly.
From a design and operations perspective, senior living communities in these cities benefit greatly from well-planned infrastructure. For example, clear signage and gentle gradients for mobility scooters are of no use if there’s no reliable power or clean water. Likewise, an on-site healthcare partnership matters more in a district well-connected to specialist hospitals. Infrastructure upgrades make the difference between a well-intended senior community and a fully functioning one.
There’s also a broader investment story. The senior living market is projected to grow to about US$12 billion by 2030 with a compound annual growth rate (CAGR) of over 30 per cent, and perhaps 60 per cent of that demand coming from Tier-2 and smaller cities. This means that cities with strong infrastructure plans, metro extension, new highways, and planned satellite townships are attracting both developers and policy interest.
What then should developers (urban planners and policymakers) focus on? For developers, the choice of location matters: not just cheap land, but land close to future infrastructure, hospitals and mobility corridors. For planners, it means creating senior-friendly protocols: buffer zones from heavy industry, walk-paths, micro transit, and healthcare nodes. For policy-makers, it means linking schemes like Atal Mission for Rejuvenation and Urban Transformation (AMRUT) or Smart Cities to senior housing and not treating elders as an afterthought, but as part of city-wide infrastructure design.
In short, senior living in India’s smaller cities was a niche, but now it is becoming part of an infrastructure-led preference shift. Now, age is backed by roads, rails, services and community; it becomes an asset. In these rising cities, ageing can mean living well, living connected and living with choice.
The author is the Co-founder of Manasum Senior Living
(Disclaimer: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)
