In recent years, there has been a growing interest in the concept of the “metaverse”, a virtual universe where people can interact and engage with one another in a shared space. The metaverse, being hailed as the next evolution of the internet as it combines the elements of augmented and virtual reality, is changing the way we interact with technology and the way we live, work, and play. This new and exciting digital space has the potential to revolutionize our approach to property investment as well, as it’s changing the face of the industry via real estate in metaverse. Real estate has always been a lucrative and stable investment option, but with the rise of the metaverse, the world of property investment is about to enter a new era.
The concept of virtual reality (VR) has been around for decades, but it is only in recent years that technology has advanced to the point where it is becoming a viable tool for professionals of real estate in metaverse. For the investors, real estate in metaverse provides an exciting opportunity to explore a new and untapped market, with the potential for high returns and a lower risk profile. Let’s check out these opportunities in detail.
Prospects of the Metaverse Real Estate Market
One of the most intriguing topics we’ve been dealing with recently is metaverse real estate. It is virtual real estate where land portions are sold. It’s also not as new as you believe. People have been working on it and creating entire universes for a very long time. People are uncovering fresh use cases for business in the digital arena as mainstream adoption spreads. Some of them are as follows:
How Buyers benefit from Real Estate in Metaverse
One of the most obvious ways that the metaverse will impact real estate is by making it easier for buyers to view properties. In the past, buyers had to rely on photographs, videos, and physical tours of properties to get an idea of what a property looked like. But with VR, buyers can now walk through a property virtually, getting a much more accurate sense of what it’s like to live in that space. This is especially useful for buyers who are not able to physically visit a property due to geographical constraints or any other reason.
The metaverse also has the potential to change the way we approach property investment as a buyer. The ability to invest in virtual properties and to experience properties in a virtual environment is changing the game, and it’s providing buyers or new investors with a new way to diversify their portfolios and minimize risk. This is especially valuable in today’s volatile market, where investing means looking for new and innovative ways to minimize risk while maximizing returns.
How Investors can cash in from Real Estate in Metaverse
One of the biggest benefits of the metaverse is the ability to create digital versions of real-world properties. These properties could take many forms, such as a house, an apartment, an estate, or a virtual land in the metaverse, virtual office spaces in a metaverse city, or virtual storefronts in a metaverse shopping center. This allows investors to explore properties in a virtual environment before they make a real-world investment. This is a huge advantage, as it provides investors with a low-risk and low-cost way to test the waters and better understand the market.
Decentraland is a wonderful showcase of the investment potential of real estate in metaverse. When their lands were originally auctioned, they were all sold out for $20 a pop, as per Sam Hamilton, Creative Director of Decentraland Foundation. Currently, the lowest price of land in Decentraland is around $3,500 so it can easily be said that the speculators have already made a lot of money. A 116-parcel tract of virtual property in Decentraland’s Fashion Street sector was purchased for a record €2.49 million (in BTC) in 2021 by Tokens.com to boost the company’s development into the digital fashion business.
Another advantage of the metaverse is that it allows for the creation of virtual communities. These communities can be built around specific themes or interests, and they provide a platform for people to connect and interact with others who share their interests. This will open up new opportunities for real estate investors, who may not have had the resources or the inclination to invest in virtual properties, as it provides them with a new way to build and maintain relationships with potential customers for the sustainable investment business of the real estate in metaverse.
How Sellers can make the most out of it
Another way that the metaverse will impact real estate is by making it easier for developers to showcase their projects. In the past, developers had to rely on drawings and renderings to give buyers an idea of what a building or development would look like. But with VR, developers can create virtual models of their projects that are highly detailed and accurate. This will allow them to showcase their projects in a way that is much more immersive and engaging for investors and buyers. Textures, which are pictures that are added to a 3D object, provide the appearance of various materials, such as translucent glass and wood, and also lend depth to pixelated sceneries for an outstanding experience.
The metaverse will also change the way that real estate is marketed and sold. In the past, real estate agents had to rely on traditional methods such as print ads, billboards, and open houses. Now, agents can create highly immersive and engaging virtual tours of properties which can attract new customers and increase visibility. Real estate in metaverse is especially valuable for properties located in remote or hard-to-reach locations, as the metaverse makes it possible for buyers to explore these properties from the comfort of their own homes. They will also be able to create virtual open houses, where investors and buyers can walk through properties virtually, and talk to agents in real-time.
Following such a wide range of business opportunities, over 300 specialists gathered in September 2022 for the two-day Dubai Metaverse Assembly (in the UAE) to examine the potential of the virtual world. In the following five years, Dubai’s overarching metaverse plan, as per these prospects, seeks to boost economic growth by more than $4.33 billion and generate 40,000 new employments.
From making it easier for buyers to view properties to opening up new opportunities for investors, the metaverse is set to change the way we think about and invest in real estate. From virtual property tours to virtual communities, the metaverse is providing investors with a low-risk and low-cost way to explore new markets and diversify their portfolios. It’s important to note that the metaverse is still in its early stages, and there are many unknowns when it comes to real estate investment. However, the potential for growth and innovation is enormous. We can expect to see more and more real estate professionals incorporating VR and the metaverse into their businesses soon. It’s clear that, as technology continues to advance, real estate in metaverse will play an important role in shaping the future of property investment.
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