Ribble Park Lodge in Liverpool Road, Much Hoole, near Preston, will be comprised of three two-storey linked blocks.
A total of 53 beds are being provided to offer residential and nursing care, including specialist dementia care.
A spokesman for developers Athena Healthcare Group said between 70 and 80 new jobs could be created.
Lesley Malone, Events Ambassador at Athena, said: “It’s going to have superior nursing for people living with dementia.
It’ll have a beautiful dementia-friendly environment where families can relax and have a meal with their loved ones.”
Letters of objections were received over concerns that the housing is to be built on what is farmland, stating that it was out of character with the area.
But South Ribble planning officers said that the build was ‘acceptable for the site’ and ‘would not have a detrimental impact’ on the area and the development was approved late last year after the council heard that the demand for care facilities in the Western Parishes was 39 per cent higher than the national average.
Ms Malone said: “To age well you need an active lifestyle. It keeps you away from doctors and hospitals and that’s what we on the whole we do.”
The lodge is set to open at the end of 2019.