30% of a Twitter poll think the property sector will capitalise on NFTs
Ali Sajwani is confident the real estate industry is ideally placed to combine digital and physical assets, as more than 4,000 of his followers share their views
Dubai, UAE ـــ 14 February 2022: Real estate is most likely to be the first sector to widely adopt non-fungible tokens (NFTs) for real-world applications. That is the opinion of respondents to an online survey conducted by Ali Sajwani, General Manager – Operations at UAE-headquartered DAMAC Properties.
The three-day poll, which garnered 4,225 responses from both Arabic and English-speaking Twitter users, saw almost a third of its participants (30%) tout the property sector as the most likely to capitalise on the potential physical applications of NFTs.
Sports and entertainment ranked second (26%), while the automotive and luxury goods industries placed third and fourth, securing 22% and 21% of the vote, respectively.
Commenting on the results of the poll, Sajwani said: “While I don’t believe the property industry is ready to migrate to the metaverse en masse just yet, I think we are at the verge of a breakthrough. My Twitter followers are right to identify the real estate sector as the first to combine digital and physical assets on a commercial scale.”
At present, NFTs, which perform a similar function to traditional certificates of authentication, are typically used in conjunction with digital assets. Due to their ‘non-fungible’ nature, they cannot be swapped for an equivalent token or tokens, meaning each NFT is unique.
During recent years, however, the number of uses for NFTs has grown significantly, with applications ranging from the ownership of digital assets and the protection of artists’ work to real-world activities.
“Today, NFTs are most commonly tied to virtual art and collectables, but there are several examples wherein digital tokens have been deployed in tandem with physical assets,” said Sajwani. “We have already witnessed this in the real estate sector, with TechCrunch founder Michael Arrington selling his Kiev apartment as part of the world’s first NFT property auction.
“One advantage for the property market is that royalties can be built 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 Department (DLD) fee, for example.
“I have no doubt that traditional property deeds and mechanisms will continue to be used for many years to come, but I certainly see blockchain-enabled technology, such as NFTs, as the future of our industry,” he concluded.
To learn more about Ali Sajwani’s NFT-related views and ventures, as well as his other passions, follow @ali_sajofficial.
#NFTs are already being used in conjunction with physical assets outside the #metaverse, but these innovations still represent 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
- Real estate: 29.95% (1,265 votes, approx.)
- Sports and entertainment: 25.8% (1,090 votes, approx.)
- Automotive: 22.15% (936 votes, approx.)
- Luxury goods: 22.1% (934 votes, approx.)
The above poll was conducted via Ali Sajwani’s Twitter account from 17-20 January 2022. Published in both Arabic and English, the survey attracted a total of 4,225 responses.
About Ali Sajwani:
Ali Hussain Sajwani oversees day-to-day operations at global property developer, DAMAC Properties. He holds a BA from Northeastern University in Boston, Massachusetts, where he majored in economics. Having inherited an entrepreneurial mindset from his father, Founder of DAMAC Properties Hussain Sajwani, Ali is keen to explore new frontiers with an eye on strategic business investments, especially in technology, sustainability and the startup ecosystem.
Ali has set up several private business ventures, including a luxury transport business, which he exited in 2020, delivering a 200% return on equity. He went on to establish a specialised facilities management company with 1,500 staff members, which provides services to the high-end hospitality segment. Ali’s most recent entrepreneurial endeavour is establishing a highly targeted, short-term leasing company in Dubai.
Ali sits on the board of the family office for investments, with a focus on US equities and venture capital funds. In this capacity, he participated in the acquisition of global fashion brand Roberto Cavalli in 2019. Ali is also a founding board member of Emirates Angels Investors Association, a non-profit organisation that works to make positive contributions to the early-stage investment ecosystem.