Ali Sajwani is convinced that the real estate industry is uniquely positioned to combine digital and physical assets as more than 4,000 of his followers share their insights.
Dubai, UAE: Real estate is most likely the first sector to widely adopt non-fungible tokens (NFTs) for real-world applications. That’s the opinion of respondents to an online survey conducted by Ali Sajwani, managing director of operations at DAMAC Properties, headquartered in the United Arab Emirates.
The three-day poll, which garnered 4,225 responses from Arabic- and English-speaking Twitter users, saw almost a third of its participants (30%) portray the real estate sector as the most likely to capitalize on the potential physical applications of NFT.
Sports and entertainment ranked second (26%), while the automotive and luxury industries ranked third and fourth, receiving 22% and 21% of the votes respectively.
Commenting on the poll results, Sajwani said, “While I don’t think the real estate industry is ready to massively migrate to the metaverse just yet, I do think we are on the verge of a breakthrough. My Twitter followers have reason to identify the real estate sector as the first to combine digital and physical assets on a commercial scale.
Currently, NFTs, which perform a function similar to traditional authentication certificates, are typically used in conjunction with digital assets. Due to their “non-fungible” nature, they cannot be exchanged for one or more equivalent tokens, which means that each NFT is unique.
In recent years, however, the number of uses for NFTs have grown dramatically, with applications ranging from digital asset ownership and artist labor protection to real-world activities.
“Today, NFTs are most commonly tied to virtual art and collectibles, but there are several examples where digital tokens have been deployed in tandem with physical assets,” Sajwani said. “We’ve seen this before in the real estate industry, with TechCrunch founder Michael Arrington selling his Kiev apartment in the world’s first NFT real estate auction.
“An advantage for the real estate market is that royalties can be embedded into these tokens, meaning they have the potential to be used alongside Real Estate Regulatory Authority (RERA) title deeds, or for the automatic collection of levies such as the 4% Dubai Land Service Charge (DLD), for example.
“I have no doubt that traditional ownership deeds and mechanisms will continue to be used for many years to come, but I certainly see blockchain-based technology, like NFTs, as the future of our industry,” he said. he concluded.
#NFTs are already being used in conjunction with physical assets outside of the #metaverse, but these innovations are still the exception rather than the rule. In the longer term, which industry do you think will be the first to widely adopt NFTs for real-world applications?
Categories and results
The above poll was conducted via Ali Sajwani’s Twitter account from January 17-20, 2022. Published in Arabic and English, the poll attracted a total of 4,225 responses.
About Ali Sajwani:
Ali Hussain Sajwani oversees the day-to-day operations of global property developer DAMAC Properties. He holds a BA from Northeastern University in Boston, Massachusetts, where he majored in economics. Having inherited the entrepreneurial spirit of his father, founder of DAMAC Properties Hussain Sajwani, Ali is eager to explore new frontiers keeping an eye on strategic business investments, especially in technology, sustainability and energy. startup ecosystem.
Ali established several private businesses, including a luxury transportation business, which he left in 2020, delivering a 200% return on equity. He then established a specialized facilities management company with 1,500 employees, which provides services to the upscale hotel segment. Ali’s most recent entrepreneurial initiative is the establishment of a highly focused short-term rental company in Dubai.
Ali sits on the board of the family office for investments, with a focus on US stocks and venture capital funds. In this capacity, he was involved in the acquisition of global fashion brand Roberto Cavalli in 2019. Ali is also a founding board member of the Emirates Angels Investors Association, a non-profit organization that strives to make positive contributions to the early-stage investment ecosystem.
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