Over the past couple of years, the real estate industry has seen great technological disruption. Increasingly, advancements in technology are poised to revolutionize the real estate industry as virtual land transactions gain significant momentum. Accelerated adoption of technology has increased the popularity of the Metaverse across the world, and real estate in the Metaverse is making waves!
Real estate in the metaverse is a virtual ecosystem, a replica of real-world conditions. It combines technologies such as augmented reality, virtual reality and video to create a digital space where users can interact, play and communicate virtually as they do in the real world. Each plot of land in the metaverse is unique and non-repeatable. These assets are digital and programmable creations, and allow users to meet, socialize, develop, play, hold meetings, and transact as they do in real-world scenarios.
There has been a gigantic increase in global interest in the real estate metaverse and the segment is becoming popular. Today, various metaverse platforms offer opportunities to buy properties very easily using digital wallets. In the real estate metaverse, land can be purchased as non-fungible tokens (NFTs) using cryptocurrencies. Interested buyers can choose a property and purchase it by linking their portfolios to the platform.
These are treated as tradable digital assets with ownership recorded on the blockchain, which is a decentralized immutable ledger to record the provenance of a digital asset. Due to its intrinsic nature and design, data on a blockchain is immune to modification. This virtual land can further be sold through a third-party exchange or the metaverse ecosystem.
However, the metaverse has already caught the interest of crypto enthusiasts, even big companies, brands, celebrities and other investors are catching up with the trend of the new digital world fast. Virtual land is gaining popularity significantly because here owners can also monetize their content, and brands can advertise their products and hold events like product launches to provide superior customer experience.
The sector is in the development stage and investors should carefully assess all risks before investing to obtain maximum returns and benefits. Investors should also be aware that in this digital world they do not physically acquire the spaces and the properties owned may become non-existent if the meta-platform goes offline or becomes inaccessible.
At first glance, the concept of virtual real estate or owning virtual land may seem far-fetched. However, there is no denying how technological advancements have revolutionized the world we live in today and continue to do so. According to experts, the metaverse could emerge as a fully functioning economy in the future, providing us with a virtual life experience integrated into our daily lives like social networks are in today’s era. Also, the way blockchain has evolved and changed the world is no longer foreign.
Blockchain technology has been the main macro-level disruptor. Likewise, real estate in the metaverse would bring seismic change in the years to come and investors across all industries have begun to recognize this. Forerunners advancing towards marketing in the metaverse might be on the verge of exploring the unique business opportunities and tapping into its potential in the future.
The real estate metaverse is poised to be the next big thing. It’s a relatively new trend, a new world, but in the coming period it will unlock a myriad of opportunities for investors that will be both exciting and rewarding.
The opportunities in the segment are huge, as real estate sales on major metaverse platforms reached $501 million last year, according to a report. Also, according to Bloomberg’s analyst report, the metaverse is set to become an $800 billion market by 2024, with global tech giants investing a lot of money to make it a reality.
(By Jatin Goel, Director, Omaxe Ltd)
Disclaimer: This is the personal opinion of the author. Readers are encouraged to consult their financial planner before making any investment.