According to a new report by JLL India, the Indoor Amusement Center (IAC) sector in India is set to experience substantial growth, with total space expected to increase by 67% to 11 million square feet by the end of 2028. Currently, the sector occupies 6.6 million square feet across 523 locations in 83 cities.
The report, titled “Game On! Entertainment as the New Frontier in Indian Retail,” highlights the transformative role of IACs in the Indian retail landscape. As shopping malls increasingly incorporate IACs, these centers are becoming crucial for driving foot traffic and enhancing consumer engagement.
South India currently leads in IAC space with 35% of the total, followed by North India at 31% and West India at 25%. Delhi NCR stands out with the largest concentration of IACs, accounting for 0.90 million square feet across 68 centers. Tier 1 cities dominate the sector, holding 57% of the IAC stock. However, there is a notable rise in IACs in Tier II and Tier III cities, driven by competitive real estate prices and land availability.
In the past 20 months, 1.43 million square feet of space was leased for IACs, with Delhi NCR securing over 0.3 million square feet of this new leasing activity. Bengaluru followed with 0.23 million square feet leased. By the end of 2024, 0.61 million square feet of newly leased IAC spaces are expected to open.
Emerging formats like eatertainment, competitive socializing, and edutainment are gaining popularity, alongside traditional gaming arcades and trampoline parks. The sector’s expansion includes both global and domestic operators, with premium formats offering high-end gaming and dining experiences reflecting evolving consumer preferences.
Dr. Samantak Das, Chief Economist and Head of Research and REIS, India at JLL, notes, “The rise of IACs in Tier II and III cities signifies a shift towards more widespread entertainment options, driven by lower real estate costs and growing demand.”
Rahul Arora, Senior MD and Head of Retail Services and Office Leasing Advisory at JLL, adds, “We anticipate over 3.5 – 4.2 million square feet of new IAC space in the next four years, further highlighting the sector’s potential to reshape retail environments.”
The report suggests that as consumer expectations evolve, malls are likely to transform into entertainment hubs, with IACs becoming integral to their design and operation. This shift is expected to bolster India’s retail sector and cater to a growing demand for diverse and immersive experiences.
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