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 the blockchain technology using decentralized, 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 characterized 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.
Gaurav Aidasani, Founder & 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.”
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 neighbors.
“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.