In an increasingly technological world, even the real estate market cannot escape digitization. Experiencing new (and intense) realities of impulse in the wake of the recent covid-19 pandemic.
While we’re completely accustomed to our avatars in various businesses on social networks, online shopping, and digital platforms, in real estate, this kind of thinking seems less common. But what is indisputable is that developments in technology have opened up the possibility of a deeper experience that is starting to spark the real estate boom: Metaverse.
In this sense, in 2022 and beyond, the approach is expected to be more technical and futuristic, embodying a new global trend in virtual worlds, namely the possibility of commercializing virtual houses and land. With rapid expansion, Spain already has the first metaverse in the field, Uttopion, which sells digital land for between 2,000 and 2,000 euros.
Values are nothing new to this field and convince those who want to get into it. Last year alone, real estate sales on Metaverse’s four main platforms reached $501 million, according to a recent study by MetaMetric Solutions published by CNBC. On the other hand, January sales were $85 million and could even hit $1 billion by the end of the year, according to forecasts in the same study.
In addition to the interactive environment in the digital society, Metaverse also announced that it will offer a 3D virtual world in which activities such as shopping, attending performances and holding work meetings can be carried out in increasingly realistic ways. Another report prepared by BrandEssence Market Research states that the real estate market in virtual worlds will grow at an annual rate of 31% between 2022 and 2028.
But how does it work?
Despite all that has been said and the growing value of the real estate market in the Metaverse, the truth is that this is only just beginning to take off. It is now starting to become well known to large real estate investors and seen as a valid alternative. In any case, it will still take some time before the market fully understands the concept and its mechanics.
In any case, the simple possibility of creating a village or city in a virtual world is a promise left by the Metaverse; here it is possible to buy and sell properties, replicate businesses, and even host events or jobs. It is also possible to enjoy any other environment, such as parks, shows, shopping malls, or even visit companies whose headquarters exist in the real world, but their virtual versions can provide new tools for customers and internal employees. Basically, it’s nothing more than an effective parallel reality that allows life to run concurrently with the everyday life of physical reality.
If it is true that existing land in a virtual world is limited to a limited number of parcels, it also does lead to more interest in investors dabbling in virtual worlds.
The virtual property presented on these platforms has a real deed of sale in the form of tokens (NFTs), so the corresponding purchases are recorded on the blockchain and the NFTs are transferred to the new owner’s digital wallet.