Indoor amusement centres to occupy 11 msf of space in India by 2028: JLL | News
Indoor amusement centres (IACs) are estimated to occupy 11 million square feet (msf) of space by 2028 in India, a 67 per cent increase from current levels, as per a report by JLL, India. Presently, India has about 6.6 msf of operational IACs across over 500 centres in 83 cities.
The number and the stock of IACs are higher in Tier-I cities due to factors like “heightened consumer demand, greater spending ability, and an increasing appetite for experiential offerings,” as per Samantak Das, chief economist and head of research and REIS, India, JLL. These cities account for 57 per cent of the total IAC stock in the country, with Delhi National Capital Region (NCR) leading the pack at 0.90 msf across 68 centres.
However, according to Das, an emerging shift in demand for IACs gaining momentum in Tier-II and Tier-III cities has to be noted. “Operators are capitalising on this opportunity by establishing large-scale centres in these emerging markets, attracted by competitive real estate rentals and land availability. Tier-II and Tier-III cities have 2.8 msf of operational IACs,” said Das.
The report further stated, “As developers recognise the importance of IACs in attracting visitors and boosting overall retail performance, the entertainment category is increasingly being integrated into initial mall design phases.”
The majority of the IACs in India are located in South India, primarily in Bengaluru, Hyderabad, and Chennai. North India has the second-highest concentration of IACs in the country, led by the NCR and followed by Ludhiana and Lucknow. Western India ranks third, with the Mumbai Metropolitan Region (MMR) and Pune leading the pack.
According to Rahul Arora, senior managing director and head, retail services and office leasing advisory, India, 1.43 msf of space was leased by IAC operators in the last 20 months, where Delhi NCR secured the largest share at over 0.3 msf.
Moreover, by the end of 2024, 0.61 msf of new IACs, which have already leased spaces, are expected to become operational.
“It is interesting to see that emerging formats such as ‘eatertainment,’ competitive socialising, and edutainment are also gaining traction apart from the growing stock of gaming arcades and trampoline parks,” Arora added.
Here, eatertainment refers to an integrated dining and entertainment experience, hosting multiple games and attractions under one roof.
Additionally, “both homegrown and international operators are fuelling the rapid development of IACs throughout India. Notably, some Indian operators are introducing premium formats that offer high-end gaming and dining experiences,” the report stated.
First Published: Sep 16 2024 | 4:21 PM IST
