Is Chennai overtaking Pune and Coimbatore in the senior living market?
Once regarded as ‘pensioners’ paradise,’ Coimbatore in Tamil Nadu and Pune in Maharashtra were long seen as two of India’s most attractive senior living destinations, thanks to their salubrious climate, affordability, and established retirement communities. However, real estate experts say that both cities are now facing growing competition from Chennai, which is rapidly emerging as a leading hub for senior living.
Chennai’s rise is driven by its strong healthcare ecosystem, a residential market increasingly tailored to retirees, and relative affordability. Senior living projects in the metro city typically range from ₹70 lakh to ₹2 crore, with most homes offered as 1BHKs (500–700 sq ft) or 2BHKs (750–1,000 sq ft). Experts note that compared to metros like Bengaluru and Hyderabad, Chennai’s more affordable real estate makes it easier for developers and senior living operators to expand.
Shubhankar Mitra, co-founder of Holistic Group, said that southern India, as a whole, has become the country’s strongest senior living market, with cities like Ooty, Mysuru, Coimbatore, and Chennai attracting organised players in recent years.
“The predominant IT/ITeS workforce, smaller nuclear household sizes, and constant travel, often overseas, have made caring for ageing parents difficult. This volatility has driven families to choose serviced senior living,” he said.
Chennai also benefits from strong connectivity to major IT hubs and township-led development along the OMR–ORR belt, where senior living is now an add-on component in many new projects.
According to a report by JLL and the Association of Senior Living India, in 2024, southern Indian cities like Chennai, Coimbatore and Bengaluru accounted for about 45% of the overall 20,000 senior living stock in India, while Pune and Ahmedabad accounted for about 13% of the total stock.
Mumbai-based Niranjan Hiranandani Group recently entered the segment with a ₹300-crore senior living project at Hiranandani Parks in Chennai’s Oragadam, spanning 1 million sq ft. The development will offer compact 2BHK homes of around 700 sq ft, starting at ₹60 lakh, signalling growing confidence among major developers in Chennai’s long-term demand for retirement-focused housing.
According to Adarsh Narahari, founder of Primus Senior Living, Chennai stands out because seniors are “deeply aware of the value proposition of organised senior living. The city’s strong nuclear-family culture has accelerated the adoption of senior living communities. Tamil seniors understand that structured care improves health and delays ageing,” he said.
The cost of developing a senior living project in India is typically 5–10% higher than that of a standard residential project due to the inclusion of technology, medical centres, and specialised common areas. Land availability remains a challenge, but demand is rising fast.
Ankur Gupta, joint managing director of Ashiana Housing, noted that Chennai has the second-highest percentage of seniors in southern India and a high NRI population, which naturally raises awareness levels. “Chennai offers better affordability than many metros, and quality-wise, it often surpasses other markets. Entry-level senior living starts at around ₹70 lakh, but we see rising demand for premium projects,” he said.
A recent Savills India report further reinforces Chennai’s growing appeal in this segment. The study places the city in Cluster 2, a category defined by strong healthcare access and proximity to key transit nodes within 10–20 km, factors that make such locations highly suitable for senior living communities. The report notes that Cluster 2 markets, such as Chennai, offer “strong investment potential,” combining the strengths of fast-growing metros with nearby non-metro towns that provide low-risk, high-demand opportunities for independent retirees. This positioning, Savills says, makes Chennai one of the most strategically placed cities for both near-term and long-term capital deployment in the senior living sector.
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Investing in senior living projects
Real estate experts noted that in Chennai, senior living homes typically start at around ₹70 lakh and can range up to ₹2 crore, depending on the amenities and the overall positioning of the project. Most units are either 1BHKs of 500–700 sq ft or 2BHKs ranging from 750–1,000 sq ft.
Among the developers, Primus alone plans to add 2,000–3,000 homes in Chennai over the next two years, including a 1,500-unit project on Chennai’s East Coast Road starting from ₹80 lakh onwards.
Gupta said Ashiana has already completed one senior living project, with two more underway along the ECR stretch. “Across our five developments, we’re offering nearly 4,500 units. While our current entry-level homes start at around ₹70 lakh, future projects will span the ₹1 crore to ₹2.5 crore range as we see rising demand for more premium, high-touch, tech-enabled living experiences,” he said.
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Things to keep in mind before investing in a senior living project
While investing in such homes, elders should closely evaluate whether the facilities truly cater to senior needs, Mitra said. “Grab bars, anti-skid flooring, accessible washrooms, CCTV surveillance, all of these are essential. Buyers should also verify whether dining services, attendants, medical support, and transportation are actually provided. In some cases, developers market units as ‘senior living’ without offering these critical services,” he cautioned.
Mitra said that seniors may be better off choosing a pan-India operator rather than a local one, although maintenance fees are typically higher with larger players.
Beyond end-use, he is also seeing strong investor interest in the senior living sector. “Many elders buy these properties and eventually pass them on to their children, who may keep them or resell them. Appreciation is similar to that of regular apartments, but the rental income potential is higher. Senior living units in metros can fetch rental yields of 5–6% annually, compared to 3–4% for standard apartments,” Mitra said.
Are cities like Pune losing their charm as senior living destinations?
Once known as a “pensioners’ paradise”, Pune was historically one of India’s most desirable senior living destinations thanks to its climate, affordability, and established retirement communities. However, experts say the city is facing increased competition from southern markets.
Mitra explains that Pune’s climate has changed over the years, and its real estate prices have risen, diluting some of its earlier appeal. “It may have lost a bit of its old charm, but senior living is still strong there,” he said.
Gupta agrees that Pune remains a relevant market but says it did not originally have the scale or quality of senior living development seen in Chennai. “Chennai is ahead in terms of consistency and quality, but Pune is catching up,” he said. New projects continue to be launched, especially on the outskirts where land parcels are larger, he pointed out.
Mitra said that new cities, such as Ahmedabad, Surat, Mumbai, and even Mahabaleshwar, are emerging as future hotspots as senior living expands beyond traditional hubs. However, southern India, particularly Tamil Nadu, continues to lead the market, driven by factors such as education, awareness, affordability, and large-scale township development.
