The real estate market in Dubai may be booming, with families like the Ambanis reportedly snapping up enormous villas in upscale neighborhoods for top dollar, but away from the hot spots, the UAE is at the forefront of a quiet revolution that is expected to soon overtake other countries as the new rage in the industry.
And it is all happening in the virtual world – the metaverse.
The virtual real estate market in the UAE – which began as a novelty at first – has been growing spectacularly of late, with virtual land and apartments selling out fast, with their prices hitting new highs.
Tech-savvy, innovation-focussed ventures such as Crypto House Capital are driving the new virtual real estate assets in the UAE, attracting investors and corporate brands equally to the emerging metaverse sector.
Global tech giants such as Apple and Meta are said to be in the race to come out with new devices – Ergonomic 4K VR devices – to fast pace public viewing and adoption of these new digital assets.
“Virtual real estate investments have been blooming in the UAE and the larger MENA regions. As a result of the current investments, virtual properties are becoming more attractive to the public, resulting in unprecedented market growth,” Tomas Nascisonis, chief executive officer of Crypto House Capital, told Arabian Business.
“As UAE is continuously investing in the metaverse, new virtual projects are rising. It is making Dubai a pioneering entity in tech creation. I believe Dubai is one of the top places in the world right now for virtual assets due to its business-friendly environment,” Nascisonis said.
For beginners, virtual real estate is sold in the form of non-fungible tokens (NFTs) and it generates revenue in the form of cryptocurrency.
Properties can be sold or leased for specific periods of time, just like in real life.
Real estate properties in metaverse can be used for a wide range of purposes including cosy gatherings to parties, NFT shows or even concert purposes.
Industry insiders said a virtual apartment can act as a hub that opens up new opportunities as the needs develop. The space can grow with the user.
“For businesses, it is a practical means to assure one’s presence in the digital realm, have an active ground for marketing operations and day-to-day activities, or be a means for an open gallery-type of use.
“For private buyers, owning a virtual apartment opens the doors to creating a perfect metaverse nook. It can be designed as one wishes, and continuously re-purposed,” Nascisonis, a self-proclaimed ‘tech-addict’, said.
Nascisonis said virtual land plots were currently selling out fast, with Sandbox’s top-selling plot, LAND #48766, getting acquired for $57,171 and Decentraland’s top seller, EST #1965, getting purchased for $758,250.
“The current investments by tech giants are pointing to something vast, adding more fuel to the fire,” Nascisonis said, pointing to the growing acceptance of the latest innovation in the virtual property space.
Nascisonis said the process of developing virtual real estate is fairly similar to building physical structures.
One starts with an idea, proceeds with a precise path of financing, purchases a land plot, and establishes the architecture, making adjustments all up to the construction phase.
“The big upside is that we do not have to deal with the labour challenges attached to physical real estate.
Nascisonis said his venture’s current focus was on building the MetaReal City.
“Our latest project, Skylum, is the first residential skyscraper in the metaverse.
“Going forward, we aim to focus on developing virtual schools, universities and other arenas to move towards realising our vision of MetaReal City,” Nascisonis said.
He said ultimately they aim to bridge the gap between real and virtual life with the help of technology.
Industry experts said the new set of virtual real estate creators were moving to establish a flourishing economy inside and around their digital assets by organising entertainment events, art shows, social events and lots more.
“It is an ambitious vision that will take a while to materialise, but the innovating companies are passionate about making it happen,” said a senior executive with a Dubai-based real estate company, who wished not to be identified.
Nascisonis said the growing interest of leading corporate brands to get associated with digital real estate assets is proof for the growing acceptance of this new asset class.
Industry experts consider that the metaverse could very well become the leading marketing avenue of the future, as the new platform – web3 – helps combine social media, gaming and entertainment into one all-encompassing experience.
The major brands implementing these changes include Nike, Zara, Samsung, Disney, Pepsi, McDonalds, and Burberry, according to Nascisonis.
