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Indoor amusement centres emerging as key drivers for consumer appeal: JLL

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According to the report, indoor amusement centre stock could reach around 11 million sq. ft. by 2028

Mumbai: A transformative shift is happening in the domestic retail landscape as Indoor Amusement Centers (IACs) emerge as key drivers of foot traffic and consumer appeal, a report by commercial real estate and investment management firm JLL said on Wednesday.

According to the report, this trend reflects a broader evolution in consumer preferences, with shoppers increasingly seeking immersive experiences beyond traditional retail offerings.

The report titled “Game on! Entertainment as the new frontier in Indian retail,” deep dives into why and how the IACs are becoming increasingly important in the Indian retail landscape.

The Indian market boasts of about 6.6 million sq. ft. of operational IAC space spread across more than 500 centres nationwide. These entertainment hubs have become integral to retail developments, attracting visitors of all age groups and enhancing the overall appeal of shopping destinations, as per the report.

By 2028, IAC stock could reach around 11 million sq ft, the report said.

These IACs, which offer a variety of entertainment options for individuals or groups, 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, JLL report stated.

“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,” Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, said.

Interestingly, according to him, these centres are also seeing a shift towards premiumisation, which is evident by the fact that one-fifth of these centres now occupy spaces larger than 50,000 sq ft, showcasing the growing demand for premium, expansive entertainment avenues.

Noting that these facilities have transformed over two decades, with international and new local operators introducing premium formats, the report stated that these premium formats require bigger spaces to provide a holistic offering.

“Concepts like eatertainment that provide an integrated dining and entertainment experience, hosting multiple games and attractions under one roof, are becoming widely popular amongst the teens and office-goers,” said Rahul Arora, Head of Retail Services & Office Leasing Advisory, Senior Managing Director (Karnataka, Kerala) India, JLL.

“So has the concept of competitive socializing, which combines the elements of entertainment and competition to create a unique social experience,” he said.

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