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Entertainment segment leasing witnesses 179% Y-o-Y growth in 2023; Bullish momentum likely to continue in 2024
There would also be continued expansion of luxury retail brands across the country, reaching beyond Tier I cities to tap into Tier II locations in 2024
The growing consumer demand for entertainment experiences within retail spaces has led to a 179% Y-o-Y surge growth in entertainment segment leasing across seven Indian cities in 2023 and the momentum is expected to continue in 2024 as well.
There would also be continued expansion of luxury brands across the country, reaching beyond Tier I cities to tap into the high-potential markets of Tier II locations in 2024. This expansion will serve to build brand awareness, strengthen customer engagement, and facilitate in-person entertainment experiences, said a report by CBRE South Asia Pvt. Ltd, a real estate consulting firm.
There has been a 179 per cent annual surge in entertainment segment leasing of retail spaces across 7 Indian cities in 2023 to 0.66 million square feet, from 0.24 million square feet in the previous year, said real estate consultant CBRE.
The seven cities included Delhi-NCR, Mumbai, Chennai, Bengaluru, Hyderabad, Ahmedabad and Pune.
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The entertainment segment comprises various facilities, including movie theaters, gaming arcades, and kids' play areas. The heightened footfall in malls translated into increased visitors to other entertainment zones like gaming arcades, clubs, etc. This trend contributed to a significant rise in the overall absorption rate within the entertainment sector.
The entertainment segment increased with a 9% share of overall retail leasing in 2023, up from 5% in 2022, the CBRE report said.
In 2023, urban cities completely transitioned back to normalcy following the withdrawal of COVID-19 protocols.
The entertainment segment leasing in Bengaluru in 2023 stood at 0.33 mn. sq. ft, with notable brands like PVR, Bounce Inc, Sky Jumper, and Fun City securing space in retail spaces. In 2022, leasing in Bengaluru stood at 0.17 mn. sq. ft, with notable brands like Tridom, PVR, Kids Jungle and Hallucinate securing retail space within the city, said the report.
Chennai saw a leasing of 0.11 mn. sq. ft, with brands such as Timezone, PVR, Play ‘N’ Learn, NASSAA, LED, Hamleys Play, and Airborne acquiring retail space. The city recorded a leasing of 0.004 mn. sq. ft in 2022, with LED as a notable brand foraying into the city, the report said.
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Delhi-NCR recorded a leasing of 0.07 mn. sq. ft, with PVR and Timezone among the brands securing retail space. Delhi-NCR recorded a leasing of 0.06 mn. sq. ft, with Time Zone and INOX among the top leasing brands in 2022, it said.
Additionally, Mumbai saw a leasing of 0.06 mn. sq. ft, with INOX and Cinepolis as notable brands. Pune witnessed a leasing of 0.05 mn. sq. ft, with Timezone, Puno Advance, and Fun City securing retail space, it said.
Ahmedabad saw a leasing of 0.03 mn. sq. ft, with brands like Timezone, Fun City, and Adjustment - Entertainment securing retail space. Hyderabad leasing stood at 0.01 mn. sq. ft, with Funtura being one of the notable brands, the report said.
“Fuelled by rising demand and evolving consumer preferences, the Indian entertainment industry is experiencing a surge in leasing activity, presenting a lucrative opportunity for developers and stakeholders to shape the future of entertainment. Strategic partnerships with leading entertainment brands will further elevate these spaces, fostering increased footfall and brand loyalty,” said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.
