Shifting leisure preferences cheer entertainment segment leasing in 2023 with 179% Y-o-Y growth
Key highlights of the report:
· The entertainment segment experienced impressive growth, with a 9% share of overall retail leasing in 2023, up from 5% in 2022
· Total leasing in 2023 in the entertainment sector stood at 0.66 mn. sq. ft, recording a 179% Y-o-Y increase
· 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
· Technology like digital ticketing and immersive experiences, alongside sustainable infrastructure has attracted visitors and also reduced costs and environmental impact
CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm, reported a 179% Y-o-Y surge in entertainment segment leasing across 7 Indian cities in 2023. Total leasing in 2023 in the entertainment sector stood at 0.66 mn. sq. ft, recording a 179% Y-o-Y increase. This uptick in leasing reflects the evolving leisure preferences post the COVID-19 pandemic. The entertainment segment comprises various facilities, including movie theaters, gaming arcades, and kids’ play areas.
The entertainment segment experienced impressive growth, with a 9% share of overall retail leasing in 2023, up from 5% in 2022, indicating growing consumer demand for entertainment experiences within retail spaces, potentially indicating a shift in people spending leisure time and money. Furthermore, 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.
In 2023, urban cities completely transitioned back to normalcy following the withdrawal of COVID-19 protocols. Enthusiasm emerged among the populace, eager to return to theaters and indulge in the immersive experience of watching movies on the big screen. This resurgence in interest was met with a strategic and timely response from the film industry, which unveiled a series of blockbuster hits, including Gadar-2, Jawan, KGF, Pathan, RRR, Animal, and others. The release of these highly anticipated films resulted in a notable increase in attendance at theaters.
In 2023, entertainment segment leasing in Bangalore stood at 0.33 mn. sq. ft, with notable brands like PVR, Bounce Inc, Sky Jumper, and Fun City securing space in retail spaces. 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. Delhi-NCR recorded a leasing of 0.07 mn. sq. ft, with PVR and Timezone among the brands securing retail space. 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. 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.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “The entertainment sector’s surge in leasing activity reflects evolving consumer preferences. Embracing innovation and sustainability in design and operation is key to maximizing appeal and longevity. Technology like digital ticketing and immersive experiences, alongside sustainable infrastructure, not only attracts visitors but also reduces costs and environmental impact. Collaborations with entertainment brands can further differentiate spaces and drive footfall.
Bimal Sharma, Executive Director & Head – Retail, CBRE India, said, “Prioritizing customer satisfaction through a vibrant and sustainable destinations will be key to success in this evolving market. We have seen a notable increase in foot traffic to entertainment zones, indicating a strong desire for shared entertainment experiences, and people are now seeking out experiences that bring them together.”
In 2022, leasing in Bangalore stood at 0.17 mn. sq. ft, with notable brands like Tridom, PVR, Kids Jungle and Hallucinate securing retail space within the city. Similarly, Delhi-NCR recorded a leasing of 0.06 mn. sq. ft, with Time Zone & INOX among the top leasing brands. Additionally, Chennai recorded a leasing of 0.004 mn. sq. ft, with LED as a notable brand foraying into the city.