Union Square House (USH), the most awarded, multi-billion-dirham real estate brokerage in Dubai, is set to launch the first Metaverse mansions in the MENA region this year. The initiative comes at a time when Dubai’s public and private sectors are at the forefront of Web3 adoption.
The adoption of Non-Fungible Tokens (NFTs) in Dubai has been snowballing. The real estate sector is considered one of the primary beneficiaries, standing first in line to benefit from Web3 applications, which run on blockchain technology using decentralised, peer-to-peer networks.
According to recent market data, real estate sales in the Metaverse reached $500 million 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% from 2022 to 2028.
Leveraging Dubai’s astute investor community and a relatively young population, which is characterised by high levels of familiarity and comfort with the concept of virtual worlds and its prospects, USH plans to develop and sell ultra-luxury digital properties as NFTs, with or without their physical twins.
Ultra-luxury virtual properties to be traded as NFTs with or without their real-world counterparts
Most recently, Dubai World Trade Centre has launched Meta Incubator, the first metaverse incubator in the Middle East. The Ministry of Economy has hosted the world’s first-ever economic summit, Investopia Investment Summit, in the Metaverse. The Ministry of Health and Prevention (MOHAP) 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 $2 million in pre-seed funding.
Gaurav Aidasani, Founder and Managing Director, 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.”
Metaverse real estate market is projected to grow at a CAGR of 31% from 2022 to 2028
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.
The consistent growth of the UAE economy and the nation’s remarkable response to the pandemic bolstered Dubai’s global appeal among investors, residents and visitors. The positive sentiment and market appeal continue to attract investors, not least those investing in virtual worlds.
Capitalising on the government’s efforts and leveraging a team of value-driven professionals with a collective focus on customer satisfaction have paved the way for USH to venture into the metaverse.