Smart City Real Estate in the Metaverse Era

Abstract

Real estate in smart cities and the metaverse is being reshaped by NFTs, tokenization, blockchain, AI valuation models, digital twins, and cybersecurity. Tokenization enables fractional ownership, access, and liquidity, while NFTs provide immutable rights that reduce fraud and enhance transparency. AI valuation uses machine learning, predictive analytics, and computer vision to improve pricing and integrate with blockchain for auditability. Digital twins link physical and virtual assets, supporting predictive maintenance, energy efficiency, and immersive walkthroughs. Yet adoption faces risks from smart contract exploits, market manipulation, and quantum computing, requiring quantum-resistant cryptography and privacy tools like zero-knowledge proofs. Case studies highlight Dubai's NFT registry, U.S. pilots, Europe's blockchain registries, and Asia's metaverse platforms. Economically, the market is projected to grow from USD 2.33 billion in 2025 to USD 67.40 billion by 2034, underscoring the need for harmonized laws, ethical AI, and sustainable frameworks.