|
The indoor amusement centers (IACs) in India are expected to register a strong growth by 2028. As per a report by JLL India, the sector will surge from the current 6.6 million square feet of operational space to 11 million square feet by 2028.
The report noted that the expansion reflects the growing importance of IACs in the country's retail landscape, driven by an experience-based economy and a favorable demographic dividend. Currently, India has 6.6 million square feet of operational IAC space across 500 centers in 83 cities. Over 90 malls across the country now host multiple IACs, indicating their critical role in enhancing overall retail performance. "India currently has about 6.6 million square feet of operational IACs across over 500 centers in 83 cities. This stock is expected to grow significantly, potentially reaching around 11 million square feet by 2028, representing a 67 per cent increase from current levels" said JLL. As per the report geographically, South India leads with 35 per cent of the total IAC space, followed by North India (31 per cent) and West India (25 per cent). It also added that Tier 1 cities dominate the market, accounting for 57 per cent of the IAC stock, with Delhi NCR emerging as the largest market, with 0.90 million square feet of space across 68 centers. "In terms of regional concentration, majority of the IACs in India are located in South India, primarily in Bengaluru, Hyderabad and Chennai. North India has the second highest concentration of IACs in the country, led by the National Capital Region and followed by Ludhiana and Lucknow" added the report. The report also highlighted that the demand for IACs is also growing in Tier II and III cities, which now account for 2.8 million square feet of operational space. By the end of 2024, an additional 0.61 million square feet of IAC space is expected to become operational, fueled by the rise of entertainment formats like eatertainment, competitive socializing, and edutainment. "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" said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL. The report suggested that demographic trends, economic stability, and the continued development of retail infrastructure will further boost the growth of the IAC segment over the next five years. (ANI)
|
