metaverse is booming and causing a crucial transformation in real estate industry

While Mark Zuckerberg claims that the Metaverse is the future, others believe that it has already arrived. In his 1994 novel, Snow Crash, science fiction author Neal Stephenson invented the term “metaverse.” Hiro, the primary character, traverses through the virtual space within the sheets.

Since 2003, millions of people have studied, explored, and socialised in the online Second Life world’s Metaverse. While the game, which peaked in the early 2000s and had some blocky graphics, is a long way from the present Metaverse vision laid forth by firms like Meta and Microsoft, the concept of a virtual metaverse where humans connect is not new.

Decentraland is presently the most well-known modern-day metaverse, with a worldwide network of users, motivating them to purchase digital estate, research, communicate, and play online games. The Decentraland Foundation was founded in 2015, and its initial coin offering (ICO) in 2017 raised approximately $26 million. While Decentraland is large and has a lot to offer, it has attracted a lot of attention to the profitable and rapidly rising digital real estate market.

According to media sources, the nonfungible token (NFT)-based Metaverse Group real estate company bought a block of Decentraland “land” for $2.43 million on Nov. 25, according to media sources, to aid with intentions to enter the digital fashion.

The real estate business is being spooked by metaverse monetization.

It’s becoming evident that commercial real estate in the metaverse will play a significant role in the global real estate market in the coming generations. Tokens.com signed a letter of intent in September 2021 to purchase a 50% share in Metaverse Group’s digital real estate portfolio, with the latter planning to advertise the offer as the first REIT for digital real estate. A public listing, according to the Metaverse Group, could happen in 2022 or 2023.

Because of the popularisation of purchasing and selling digital property, organisations like the Metaverse Group perform many of the same functions as a traditional real estate firm in terms of purchasing, trading, and advertising. Some are sceptical that investments in digital real estate would appear to be sensible down the line as values climb and bidders appear crazed about virtual land.

Despite the high costs, interest in metaverse real estate continues to grow, particularly as the coronavirus outbreak has brought more people online and increased their willingness to virtual mingle. Those interested in metaverse real estate face competition from celebrities who have been vocal about their digital real estate endeavours.

The Sandbox collaborated with famed rapper Snoop Dogg in late September to build up his residence and NFT collection in the metaverse. Paris Hilton partnered with Decentraland and Genies the following month to perform as one of the headlining performers at the first Metaverse Festival, which took place in late October.

How are real estate investors shifting their focus to virtual properties?

Other corporations, including Meta, formerly Facebook, and Microsoft, have noted the interest and attention in the Metaverse and are keen to join in.

Metaverse assets, like traditional real estate, continue to flourish amid the waxes and wanes of Bitcoin (BTC) and other cryptocurrencies.

The prominence of NFTs, in tandem with the increase in popularity of online settings, clashes with the restricted amount of land available in digital environments within the metaverse, driving up costs. Decentraland, for example, contains only 90,000 land pockets.

Even investment firms are wetting their hands in the Metaverse and learning more about how they can participate. The Metaverse will be more than a catchphrase because of its high values, acceptance, and ease of purchasing and selling virtual land (in contrast to traditional real estate). As more individuals enter the metaverse, skilled investors and buyers who scoop up homes in prime locations will look very smart, similar to the domain name frenzy at the dawn of the internet.

Digital real estate will develop and extend as the Metaverse grows and expands. Buyers and investors who are way ahead of the game should believe that the metaverse real estate boom will continue.