New and premium formats are gaining traction in IACs

MUMBAI, SEPTEMBER 19, 2024: A transformative shift is happening in India's retail landscape as Indoor Amusement Centers (IACs) emerge as key drivers of foot traffic and consumer appeal. This trend reflects a broader evolution in consumer preferences, with shoppers increasingly seeking immersive experiences beyond traditional retail offerings, according to JLL India’s report "Game on! Entertainment as the new frontier in Indian retail," launched today during the two-day MAPIC India (Formerly IRF) event on held on 18^th -19^th September 2024 in Mumbai.

The report deep dives into why and how the Indoor Amusement Centers (IACs) are becoming increasingly important in the Indian retail landscape. Indoor Amusement Centers offer a variety of entertainment options for individuals or groups. These centers feature a combination of games and attractions to provide recreational and leisure experiences. They are located either in standalone properties or located inside a retail development/commercial complex. In some formats they also offer a variety of attractions as well as F&B options.

The Indian market currently boasts approximately 6.6 million square feet of operational IAC space spread across more than 500 centers nationwide. These entertainment hubs have become integral to retail developments, attracting visitors of all age groups and enhancing the overall appeal of shopping destinations. By 2028, IAC stock could reach ~11 million sq. ft.

“Larger retail developments and malls are expected to accommodate more expansive and innovative centers. Further, standalone Indoor Amusement Centers that offer a variety of entertainment concepts under one roof are expected to become increasingly popular in the coming years. Interestingly, these centers are also seeing a shift towards premiumization, evidenced by the fact that one-fifth of Indoor Amusement Centers now occupy spaces larger than 50,000 square feet, showcasing the growing demand for premium, expansive entertainment avenues.” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

Indoor Amusement Centers have transformed over two decades, with international and new local operators introducing premium formats. These premium formats require bigger spaces to provide a holistic offering.

Premium indoor amusement centers that combine high-end gaming, upscale lounges and dining experiences are indeed emerging as a growing trend in the entertainment industry. With a focus on quality and exclusivity, these centres offer luxurious amenities, top-tier games, and carefully curated atmosphere for elevated entertainment experience.

“Concepts like Eatertainment that provide an integrated dining and entertainment experience, hosting multiple games and attractions under one roof, has been become widely popular amongst the teens and the office goers. So has the concept of competitive socializing, which combines the elements of entertainment and competition to create a unique social experience. Typically, it focuses on a single game and generally include an elevated bar, microbrewery and food options. Currently, Eatertainment* formats are present in 50 plus centers, spread across 0.85 million sq ft in India” said Rahul Arora, Head - Retail Services & Office Leasing Advisory, Senior Managing Director (Karnataka, Kerala) India, JLL.

As the lines between retail, entertainment, and dining continue to blur, in the coming years, it is anticipated that larger retail developments and malls will allocate more space to accommodate expansive and innovative IACs. This shift is expected to redefine the retail landscape, transforming shopping centers into holistic lifestyle destinations that offer far more than just retail therapy.

As Indoor Amusement Centers continue to reshape India's retail and entertainment sectors, they stand as a testament to the evolving nature of consumer experiences and the adaptive capacity of the real estate industry. This trend not only promises exciting developments for consumers but also opens up new opportunities for investors and developers in the burgeoning experience economy.

*Eatertainment: Provide an integrated dining and entertainment experience, hosting multiple games and attractions under one roof.

JLL is India’s premier and largest professional services firm specialising in real estate. The Firm has grown from strength to strength in India for the past two decades. JLL India has an extensive presence across ten major cities (Mumbai, Delhi NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Ahmedabad, Kochi, and Coimbatore) and over 130 tier-II and III markets with a cumulative strength of over 15,000 professionals. The Firm provides investors, developers, local corporates, and multinational companies with a comprehensive range of services. These include leasing, capital markets, research & advisory, transaction management, project development, facility management and property & asset management. These services cover various asset classes such as commercial, industrial, warehouse and logistics, data centres, residential, retail, hospitality, healthcare, senior living, and education. For further information, please visit jll.co.in