Mumbai, September 18, 2024 — A significant shift is underway in India’s retail sector, as Indoor Amusement Centers (IACs) are emerging as pivotal attractions that drive foot traffic and enhance consumer engagement. This trend, highlighted in JLL India’s newly released report titled “Game on! Entertainment as the New Frontier in Indian Retail,” was unveiled today at the MAPIC India event in Mumbai.

The report underscores the growing importance of IACs, which offer a diverse range of entertainment options designed for individuals and groups. These centers, found either in standalone venues or integrated within retail developments, provide a mix of games, attractions, and food and beverage options, appealing to shoppers seeking immersive experiences beyond conventional retail offerings.

Currently, India boasts approximately 6.6 million square feet of operational IAC space across more than 500 centers, with projections suggesting this could expand to around 11 million square feet by 2028. These entertainment hubs attract visitors of all ages, significantly enhancing the allure of shopping destinations.

“Larger retail developments and malls are expected to house more expansive and innovative IACs in the future,” said Dr. Samantak Das, Chief Economist and Head of Research and REIS at JLL India. “Standalone centers offering diverse entertainment concepts are also on the rise, with one-fifth of IACs now exceeding 50,000 square feet, reflecting the growing demand for premium entertainment options.”

The Rise of Premium IACs

Over the past two decades, IACs have evolved significantly, with both international and local operators introducing premium formats that require larger spaces to deliver comprehensive offerings. These upscale centers combine high-end gaming with luxurious lounges and dining experiences, catering to consumers seeking quality and exclusivity.

Notably, concepts like “Eatertainment,” which integrate dining and entertainment within one venue, have gained popularity, especially among teens and office-goers. This model, which hosts multiple games and attractions, is now featured in over 50 centers across 0.85 million square feet in India. Additionally, the concept of competitive socializing, which blends entertainment with a competitive edge, is also on the rise, often accompanied by upscale dining options.

As the boundaries between retail, entertainment, and dining continue to blur, it is anticipated that larger malls will allocate more space to innovative IACs. This shift is expected to redefine the retail landscape, transforming shopping centers into holistic lifestyle destinations that offer more than just shopping.

The ongoing evolution of Indoor Amusement Centers in India exemplifies the changing dynamics of consumer experiences and the adaptability of the real estate market. As this trend progresses, it promises exciting developments for consumers and opens new avenues for investors and developers within the burgeoning experience economy.

Also Read: Indoor Amusement Centers in India to Expand by 67% by 2028

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