Over the past several months, the concept of the “metaverse” has risen from the depths of obscurity to the forefront of reality. This year, it is predicted to see a significant rise in digital real estate sales in the Metaverse. Despite the increased attention, there is little agreement on what “metaverse” implies or how this new technology will affect the economy and society. It is claimed that commercial real estate market can benefit greatly from the introduction of Metaverse digital real estate.
Suppose you and your loved ones decided to go for a walk and, while being there, you decided to do some window shopping. But it is all done in a virtual setting using a realistic-looking avatar. That is the way things are now.
The web is a dynamic space where people make significant advancements. The users’ experiences are continually morphing from mundane and monotonous routines to something thrilling and exciting. And metaverse fever is right now in the centre of it all.
Several well-known companies operating in Dubai real estate sector, including Emirates and Damac Properties, have placed significant bets in this sector. It is anticipated that many more will jump on the bandwagon in the near future. The emirate has laid out its plans to become the regional and global centre of the Metaverse. As a matter of fact, the metropolis is already preparing the groundwork for the next stage of humanity’s virtual future with XR (extended reality).
A few months ago, Dubai’s Ministry of Health and Prevention (MoHAP) built a new metaverse platform, providing consumers virtual access to medical treatment. MetaIncubator, the region’s first metaverse incubator, was unveiled last month at the Dubai World Trade Centre. Over in the private sector, company Eikonikos recently raised $2 million in pre-seed capital. A lot is going on here, and it is getting exciting and interesting with every passing day.
Modern technology has blurred the line between the physical and digital worlds. With the accelerated advancement of technology and the force created by the pandemic outbreak, the whole communication paradigm has started shifting towards online platforms and channels. Virtual spaces like video games, social media platforms and other virtual realities are crucial in people’s lives. In Metaverse, the digital and physical worlds are intertwined. Therefore, this technological revolution will open the doors to limitless imaginations and opportunities in every business sector, especially Dubai real estate.
Dubai Metaverse, as a part of the Metaverse Global family of NFT platforms, is based on the same features and infrastructure as Metaverse Thailand. Due to virtual reality’s dependence on META Chain, META Token is the only acceptable currency for in-game purchases. Investors and residents alike will have the freedom to buy, sell, rent, and alter the properties in Dubai Metaverse as they see fit. The cityscapes of Dubai are the components of the Metaverse Dubai Map. The major locations of Dubai, like Downtown Dubai, will be featured in the Metaverse, which aspires to become the virtual hub of cutting-edge real estate development. The properties in Dubai Metaverse will be available for buying and selling.
The concept of building wealth through Dubai real estate is shifting in light of the Metaverse. Non-Fungible Token (NFT) sales of virtual homes are being investigated by many developers and Dubai real estate companies. There is significant interest from investors. Individuals who have access to the Metaverse will gain from the inclusion of virtual assets like real estate in their investment portfolios, while those who do not will be left behind.
The property market is one of the industries that stand to gain the most from Web3 applications. In 2021, sales of Metaverse real estate topped $500 million, which is predicted to double in 2022. From 2022 to 2028, the market for property in the Metaverse is expected to expand at a CAGR of 31%.
In the United Arab Emirates, the use of NFTs is increasing rapidly. The property agents in Dubai and the investors will use NFTs for virtual real estate transactions. The Investopia Investment Summit was the first economic summit ever held in the Metaverse, and the Ministry of Economy organised it. Metaverse is a new platform created by the Ministry of Health and Prevention (MOHAP) to facilitate remote consultations with doctors and other health-related services. Private sector metaverse startup Eikonikos, situated in Dubai, has acquired $2 million in pre-seed funding. Also, the first Metaverse mansions in the MENA area will be introduced this year.
In the beginning of 2022, the Dubai Government takes a new step in developing metaverse strategy. It has also revealed its plans to work with private sector companies to create a human-oriented version of a city in the metaverse called One Human Reality. The global attractiveness of Dubai real estate among investors, residents, and visitors was boosted by the UAE sustained economic growth and an outstanding reaction to the pandemic. A positive outlook and market attraction continue to draw investors, including those interested in virtual worlds.
Dubai has a young population and a community of savvy investors. This results in a large number of people feeling at ease with the idea of virtual worlds and the possibilities they present. To maximise their returns, investors are taking advantage of the current “enabling climate”.
The move into the Metaverse is driven by the conviction that the popularisation of the virtual world would revolutionise numerous industries, with Dubai real estate being on top. People in Dubai, a city of the future populated by a youthful workforce, are well aware of the possibilities of digital assets.
Buyers of virtual properties in Dubai have the added benefit of being able to explore their investments in augmented reality and communicate with other users and virtual neighbours. It is easy to dismiss these developments as fanciful, but the Metaverse is making real, promising headway around the world right this very second. For example, Metamall is a corporation presenting over 6,000 virtual properties for sale of all sizes in the shape of cubes, cabins, clubs, chalets and chateaus. Those interested in buying properties in Dubai can do so in the form of NFTs and put the premises to use as online stores.
Apart from the property agents in Dubai providing services for the real estate services in Metaverse, numerous mortgage companies are offering to finance the acquisition of virtual homes. All of these trends bode well for the future of digital real estate, offering Metaverse investors a chance to see significant returns on their virtual holdings in the years ahead.
Increasing numbers of people are beginning to view investments in digital properties for sale as a viable option for the long term. Virtual reality (VR) experiences, particularly VR real estate, offer “green” locations without the environmental or financial constraints normally associated with their physical counterparts.
In a nutshell, the property rights in Metaverse are practically unrestricted, allowing owners to do whatever they like with their virtual holdings. Owners of digital real estate can put up workplaces, run retail establishments, rent out spaces for special events, and install billboards to advertise their businesses.