Dubai-based Union Square House (USH) 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.
According to USH, 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.
METAVERSE IN DUBAI
As a result of Dubai’s active investor community, USH plans to develop and sell ultra-luxury digital properties as NFTs, with or without their physical twins.
Real estate sales in the metaverse reached USD 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.
Dubai World Trade Centre has launched MetaIncubator, the first Metaverse incubator in the Middle East, while 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 USD 2 million in pre-seed funding.
“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,” said Gaurav Aidasani, Founder & Managing Director, Union Square House (USH).
“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.
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