South Indian cities have maximum number of indoor amusement centres at 2.3 mn sq ft, Bengaluru takes the top spot

In terms of regional concentration, the majority of the IACs in India are located in South India, primarily in Bengaluru, Hyderabad and Chennai. As much as 0.6 mn sq ft of space is present in Bengaluru, 0.58 mn sq ft in Hyderabad and 0.31 mn sq ft in Chennai, the report showed.

North India has the second highest concentration of IACs in the country, led by the National Capital Region at 0.90 mn sq ft followed by Ludhiana and Lucknow at 0.18 mn sq ft each.

IACs are large format gaming zones located in shopping centres.

Western part of the country ranks third, with Mumbai Metropolitan Region (MMR) and Pune leading the pack at 0.66 mn sq ft and 0.34 mn sq ft respectively, the report showed.

India currently boasts 6.6 million square feet of operational indoor amusement centers (IAC) space across 523 locations in 83 cities. South India leads with 35% of IAC space, followed by North (31%) and West (25%), the report showed.

Here’s why IACs are gaining traction

Tier 1 cities account for 57% of IAC stock, with Delhi NCR leading at 0.90 million square feet across 68 centers, it said.

Experience economy and the substantial demographic dividend have led to the growth of the entertainment sector in the country. There is a significant shift in the Indian retail landscape, with indoor amusement centers (IACs) emerging as a key driver of footfall and consumer engagement, said the JLL report titled ‘Game on! Entertainment as the new frontier in Indian retail’ to be unveiled during the MAPIC India (formerly IRF) event on September 18-19 2024.

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“Tier I cities are the leaders in both number and stock of IACs, driven by a confluence of factors including heightened consumer demand, greater spending ability, and an increasing appetite for experiential offerings. These cities account for 57% of IAC stock (3.75 million sq ft), with Delhi NCR leading at 0.90 million square feet across 68 centers,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

“However, a noteworthy shift is emerging as demand for amusement centers is gaining momentum in Tier II and Tier III cities. Operators are capitalizing on this opportunity by establishing large-scale centers in these emerging markets, attracted by competitive real estate rentals and land availability. Tier II and III cities have 2.8 million sq ft of operational IACs,” he said. 

By the end of 2024, 0.61 million square feet of new indoor amusement centers, which have already leased spaces, are expected to become operational, the report noted. 

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“It is interesting to see that emerging formats such as eatertainment, competitive socializing, and edutainment are also gaining traction apart from the growing stock of gaming arcades and trampoline parks. We foresee an addition of over 3.5 – 4.2 million square feet of new entertainment centers in the next four years, taking the total IAC stock to over 11 million square feet,” said Rahul Arora, Senior MD and Head – Retail Services and Office Leasing Advisory, India.

The report noted that IACs are evolving to provide expansive spaces and activities for all ages. These centers diversify entertainment options, from arcade games to virtual reality and interactive attractions. India ‘s retail market evolution points towards malls transforming into social hubs and entertainment destinations. The surge in demand for varied experiences will likely spur the rise of standalone indoor amusement centers nationwide, offering multiple entertainment concepts in single locations.