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  • Metaverse and NetxGenFDI will also impact real estate opportunities
Metaverse and NetxGenFDI will also impact real estate opportunities
Nov 4, 2022
Metaverse and NetxGenFDI will also impact real estate opportunities Dubai
By   Internet
  • City News
  • Metaverse
  • NextGenFDI
  • Technology companies and real estate
Abstract: Metaverse and NextGenFDI are designed to attract tech talent and new startups

Approximately 60% of the 470+ million entrepreneurs believe that AI is the most promising innovation technology.

 

Prior to the pandemic, statistics showed that of the 305 million startups created each year globally, more than 1.3 million were supported by technology. This number has increased dramatically in the past two years.

 

About 30 percent of startups operate in the fintech, life sciences, healthcare, artificial intelligence, gaming, adtech and edtech industries.

 

While such statistics may not be entirely accurate, it is clear that today's startups are becoming more focused on connectivity, the Internet and digital solutions.

 

According to the World Bank, SMEs account for approximately 90% of global businesses and 50% of employment. In the MENA region, the reality is no different, with SMEs considered a major contributor to job creation and economic development.

 

As most SMEs today are technology related - at least to some extent - the recently launched NextGenFDI and Dubai Metaverse strategies will attract a large number of entrepreneurs, startups, technology and Metaverse talent, which could drive further demand for housing and commercial real estate in the UAE.

 

The influx of organizations and talent driven by these two government initiatives will have a ripple effect that will be felt across all sectors, especially as NextGenFDI will offer commercial and residential real estate incentives to companies relocating to the UAE.

 

Real estate growth will also be boosted by the release of the latest Royal Decree providing incentives for commercial real estate funds. These incentives will include the provision of workspace, warehouses and other industrial facilities.

 

According to the decree, the establishment of a "Property Investment Fund Register" at the Dubai Land Department is essential to provide a framework for regulating commercial property funds.

 

Digital startups are at the forefront of innovation. They often originate from "innovation hubs" such as the US, India and other countries. By scaling up or relocating to the UAE, they will need to provide offices and housing for their leadership and staff.

 

In 2018 alone, 50,000 startups came from India, with more than 18 percent of them being technology-based. A year later, another 1,300 tech startups were launched in the country, which means 2-3 new tech startups are being launched every day.

 

Nearly 90% of all startups fail. Success depends heavily on where the business is based. Establishing a base has a lot to do with the enabling infrastructure of the country or city in which the founders and their teams operate.

 

For a digital startup, efforts to avoid failure include ensuring a business base where advanced digital infrastructure, facilities and incentives are prevalent.

 

In addition to the government's latest initiatives, the UAE has strengthened its position as an attractive destination for tech companies. According to the World Bank, the UAE is one of the most connected countries in the world, with an Internet penetration rate of more than 99 percent.

 

Technology companies are increasingly opening up real estate opportunities to buyers without the need for real estate agents or by automating transactions for investors, brokers and property managers. Artificial intelligence and machine learning are providing predictive analytics and bringing a higher level of transparency to the real estate ecosystem.

 

Dubai's adoption of NFT is increasing and there is no doubt that the real estate industry will benefit from Web3 applications. sales of Metaverse properties reached $500 million in 2021 and are expected to double this year. The virtual real estate market is expected to grow at a compound annual growth rate of 31% through 2028.

 

The proliferation of digital real estate is unprecedented. Financial institutions are now lending to support clients interested in purchasing virtual real estate. As market dynamics of this nature continue to evolve, digital real estate will further increase in popularity.

 

These developments ultimately benefit Metaverse investors as the valuation of their virtual real estate assets increases.

 

The new wave of talent entering the UAE as a result of these two new initiatives is likely to invest in real estate, which offers a higher return on investment compared to other markets.

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