Virtual reality in the metaverse creates opportunities. Would anyone buy a virtual property for $200,000? Indeed. Already, many have.
PwC, Samsung, and HSBC have bought virtual estate, not only Snoop Dogg. JPMorgan built a metaverse branch. According to MetaMetric Solutions, metaverse real estate acquisitions surpassed $500 million in 2021 and could treble this year.
Xclusiverse bets on this demand. The company connects brokers, owners, sellers, and purchasers of digital and real-world properties.
Unicorp Capital’s first phase of the platform allows land brokers and developers to market their properties online. The next step, in September 2022, will allow metaverse property purchases.
Real estate is challenged by tech and digital transformation. Realtors lack inventory and scalability. Florina Onetiu, co-founder of Unicorp Capital, told Arab News they don’t see rich digital marketing tactics, improved sales methods, or immersive learning experiences.
“The real estate business can address actual challenges online by developing a community to buy and sell property securely,” she said.
Realtors can buy a yearly membership to Xclusiverse, which includes virtual office space. Individual business demands can be met.
When? Metaverse business is booming. Onetiu predicts annual sales growth of 44%.
The increase is due to its popularity, COVID-19, augmented or virtual reality, and the practical usage of metaverse to buy digital assets with crypto and non-fungible tokens. Everything skyrocketed when Facebook released metaverse last year, she noted.
Facebook rebranded as Meta in October 2021, focusing on the metaverse. November real estate sales rose to $113 million, according to MetaMetric. Grayscale, a crypto asset management, anticipated a $1 trillion digital market.
According to a JP Morgan research, the average price of virtual land doubled in six months in 2021, reaching $12,000 across the four largest metaverse platforms in December 2021. According to Republic Realm, approximately 60% of virtual land transactions in 2022 were in Sandbox. Warner Music, Gucci, and Snoop Dogg bought Sandbox virtual assets.
Buying virtual land is anchored on blockchain, a decentralized concept where no bank or government may enforce laws. Dubai is enacting legislation to protect virtual assets and assist this emerging industry.
Nadim Bardawil, a partner at BSA Legal, expects more virtual asset startups to select Dubai as a launchpad or important market.
“The UAE is among the authorities willing to regulate fledgling technology used to produce, buy, or sell virtual assets. This boosts our plan.”
The UAE’s Virtual Assets Law does not explain how virtual assets would be controlled, he said. The Virtual Asset Regulatory Authority’s mandate is to regulate virtual assets, and “we expect the first set of regulations by Q2 2022.”
Self-funded startup Xclusiverse is seeking capital in June to scale business operations and bring real estate into the digital age. The proposal involves making it easier to buy virtual assets online and closing real-world deals virtually. Every member broker will have a metaverse office.
“We established these venues to allow our members to grow their portfolio to global leads and clients, mingle, and take their virtual relationships into the real world,” said Onetiu. “Metaverse is social media”