The site, located on Otley Road, will be transformed by the McGoff Group, who will deliver a 74 bedroom care facility and six bespoke two bedroom bungalows.
The care facility will be operated by New Care, part of the McGoff Group, and will be the first care home in Yorkshire for the company.
The bungalows will be available for private sale, appealing to homebuyers looking for a luxury property that also offers some domestic support at home to enable continued independent living.
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McGoff Construction, also part of the McGoff Group, has made an immediate start on site with the groundworks well underway.
Chris McGoff, Director at the McGoff Group, said: "This site in Adel is superb. It benefits from amenities in nearby Headingley, just 750 metres away, and overlooks open countryside.
"The size and location of the site really suit our proposed scheme, with bespoke two bedroom bungalows built in a picturesque setting and an expertly designed, purpose-built care facility in the heart of the community.
"The development itself will be nestled away and largely invisible from the road, adding to its appeal. We are very much looking forward to bringing the New Care brand to Yorkshire and are confident the care home will exceed all expectations. The bungalows with domestic support on site and the option for additional support packages when required, complete the development and perfectly compliment the care facility."
