India’s Indoor Amusement Space Set to Surge

MUMBAI, SEPTEMBER 16, 2024: India’s Indoor Amusement Centers (IACs) are poised for significant growth, with projections indicating an increase of 67% in space by 2028, according to a new report by JLL India. The current 6.6 million square feet of IAC space is expected to expand to approximately 11 million square feet, reflecting a booming sector driven by the experience economy and a burgeoning demographic dividend.

Regional Distribution and Growth Dynamics

India’s IAC landscape is predominantly concentrated in South India, which accounts for 35% of the total IAC space, with key locations in Bengaluru, Hyderabad, and Chennai. North India follows with 31% of the space, led by Delhi NCR, while the West, including Mumbai and Pune, holds 25%. Tier 1 cities dominate the sector, housing 57% of the IAC stock, though Tier II and III cities are emerging as key growth areas due to attractive real estate and land availability.

Leasing Trends and Future Projections

In the past 20 months, 1.43 million square feet of space has been leased for new IACs, with Delhi NCR leading the charge, securing over 0.3 million square feet. Bengaluru follows with 0.23 million square feet. By the end of 2024, 0.61 million square feet of newly leased IAC spaces are anticipated to open. The rise of formats such as eatertainment, competitive socializing, and edutainment is also notable, contributing to the overall growth.

Impact of Global and Domestic Operators

Both international and homegrown operators are fueling the expansion of IACs across India. Global players are establishing a presence while domestic operators are aggressively entering new markets with premium formats offering high-end gaming and dining experiences. This trend highlights the evolving preferences of Indian consumers and the diversification of entertainment options available.

The Future of Retail and Entertainment

India’s retail landscape is evolving, with malls increasingly integrating entertainment options to drive footfall and engagement. The growth of Indoor Amusement Centers reflects a broader trend towards immersive experiences in retail, setting the stage for malls to become dynamic social hubs and entertainment destinations. With a projected addition of 3.5 – 4.2 million square feet of new IACs in the next four years, the sector is on a trajectory of robust expansion and innovation.