Dubai-based real estate brokerage Union Square House (USH) is set to launch Metaverse mansions in the MENA region this year. The company plans to develop and sell ultra-luxury digital properties as NFTs, with or without their physical twins.
The initiative comes at a time when Dubai’s public and private sectors are at the forefront of Web3 adoption. The real estate sector is considered one of the primary beneficiaries, standing first in line to benefit from Web3 applications, which run on the blockchain technology using decentralised, peer-to-peer networks.
According to recent market data, real estate sales in the metaverse reached $500m in 2021, and the sales volume is expected to double in 2022. The metaverse real estate market is projected to grow at a CAGR of 31 per cent from 2022 to 2028.
Most recently, Dubai World Trade Centre has launched MetaIncubator, the first metaverse incubator in the Middle East. The Ministry of Economy also hosted the world’s first ever economic summit, Investopia Investment Summit, in the metaverse. The Ministry of Health and Prevention has also developed a new metaverse platform, allowing people to access medical care and receive health-related support virtually. Within the private sector, Dubai-based metaverse startup Eikonikos has recently raised $2m in pre-seed funding.
Gaurav Aidasani, Founder and MD, Union Square House (USH), commented:
“Our foray into the metaverse stems from our strong belief in a prevalent virtual world that is set to transform many sectors, on top of which is real estate. In the long term, owning virtual assets such as real estate will benefit those with access to the metaverse, leaving others behind. In futuristic cities like Dubai, which thrives on a predominantly young generation, people understand the value and potential of digital assets.”
In addition to ownership, investing in digital mansions allows buyers to view their properties in augmented reality form, and interact with other users and digital neighbours.
“We believe digital real estate has already gone mainstream. A number of lenders are even offering mortgages to support customers in buying virtual properties. All these developments give fresh momentum to digital properties, presenting investors in the metaverse with an opportunity to multiply the value of their virtual assets over the coming few years,” Gaurav added.
News Source: Gulf Business