The reason God began creating the physical world was to bestow His perfect kindness upon His creations. If there were no creation, to whom could He show His  perfect and loving kindness to?

Apart from that, He created mankind specifically to be partners with Him in creation. To be a partner of Hashem means to act according to His will and to endeavour to the best of our abilities to make the world a better, more perfect place for future generations and all who dwell within it.

Because He is the embodiment of mercy He understands we weren’t created with perfect character traits, so His patience with us gives us time to repair ourselves and the world around us.

We are obligated to rectify our sins and fix our mistakes, fulfilling our mission here on earth, and in doing so correct all our neshamot (souls), which is the sole purpose of our existence in this physical plane.

When Hakodesh Baruch Hu eventually returns to us, He will dwell in this world also, in a tangible and recognisable way.