Metaverse is a trailblazing technology that enables corporations to develop novel digital experiences to take their consumers on an interactive journey into the digital realm. The Metaverse is more than NFTs, crypto, and VR gaming. It can promote goods and services and foster engagement between companies and their clients. There are endless ways in which Web 3 and the Metaverse might change the business world and society in the United Arab Emirates. Dubai has already unveiled a new Metaverse Strategy, which would completely alter the state’s economy and even trigger a revolution in the property market.
Have you ever speculated about the size of the metaverse property market? You’ll have a hard time finding any details about it. However, since their launch, real estate transactions have totaled $1.9 billion on the ten biggest virtual world marketplaces. Further, the virtual real estate industry is predicted to grow by $5.37 billion between 2022 and 2026. The real estate industry in the United Arab Emirates (UAE) is also beginning to explore the Metaverse, with major stakes from Emirates and Damac Properties.
The Metaverse As A Force: Transforming The Real Estate And Construction Industries In The Years To Come
In the not-too-distant future, Dubai will emerge as a hub for millions of dollars worth of luxurious houses, villas, five-star hotels, stylish flats, and gigantic malls in the Metaverse. MetaMetrics Solutions reports that in 2021, sales of metaverse real estate totaled $500 million, and that number is likely to quadruple in 2022. Further, estimates for the period between 2022 and 2028 indicate a CAGR of 31% for the metaverse property market. Utilizing Dubai’s Metaverse Strategy, the emirate is heading towards capitalizing on the $30 trillion industry. Dubai’s government anticipates creating more than 40,000 new employment opportunities and a contribution of $4 billion to the economy by 2030 due to this strategy.
A Mega Investment In The Metaverse: Damac Group Invests $100 Million In Digital Cities
The Damac Group has budgeted Dh367 million (about $100 million) to construct virtual cities in the well-known digital space called the Metaverse. Damac has created a new department, D-Labs, to focus only on its metaverse project. The company is eager to leverage metaverse opportunities to engage and interact with its consumers on a deeper level. Damac Homes has been giving potential purchasers 3D virtual tours of its properties using VR and AR technologies for the last year. The Damac Group also plans to expand into the digital space with virtual real estate, wearables, and jewelry projects.
A Recent Uptick In The Sale Of Metaverse Mansions: Where Does Dubai Stand?
Metaverse mansions are programmable environments where users interact with one another, have meetings, play games, buy and sell non-fungible tokens (NFT), join virtual events, and participate in many other activities. In 2022, Dubai plans to introduce the first Metaverse mansions to the Middle East and North Africa (MENA) region. USH, a Dubai-based brokerage firm, is building and trading premium virtual properties as NFTs with or without their physical counterparts. The company is pinning its hopes on the fact that more than 80 percent of Dubai’s young generation is already aware of digital real estate.
The Groundbreaking Power Of Web 3.0
Increased interest in Web3 and NFTs among Dubai’s business community is the primary factor propelling the city’s real estate market into the Metaverse. The majority of the Dubai population is under 30 and possesses a substantial investment mindset. They are also comfortable with the concept of a metaverse and web3 technology. With its booming Web 3.0 and Metaverse sector, Dubai is an emirate diving deeply into the digital future of innovation. Web 3.0 will serve as a springboard for artificial intelligence and virtual reality and will profoundly impact business and trade. Gamification, NFTs, virtual reality (VR) activations, and next-generation technologies all play a vital role in bridging the real and virtual gap.
Mortgages Against NFTs: Enabling Young Participants To Climb The Property Ladder
Metaverse mortgage loans are currently being made available by companies to customers who want to use them to buy virtual property. As additional lending options become available, this might profoundly impact the digital world. Many individuals cannot afford to invest in property of any kind. However, young individuals can now get mortgages backed by NFTs from different lenders to own virtual property, enabling them to climb the property ladder in the long run. These developments indicate a promising virtual property future, giving investors an opportunity to reap enormous profits on their Meta real estate investments.
The Bottom Line
The real estate industry will benefit immeasurably from the advent of the Metaverse. More and more individuals are starting to see digital trading assets as long-term financial opportunities. In addition, virtual properties pose fewer adverse environmental effects, and people view them as a sustainable and lucrative investment. The Metaverse and its integrated architecture may have a significant impact at every stage of the home building process, from initial construction to final resale years later.