What is ‘Virtual Real Estate’ in the Metaverse?
As we've always known them so far, real estate deals have been about conveying rights to brick-and-mortar buildings and the finite ground they occupy on this big rock spinning around the sun. Humans live, shop, work and play in places shaped by a system of real property rights to very real properties.
But it’s 2022, and in many instances, humans also do a lot of these things on their electronic devices — which are getting faster, smarter and more technologically adroit every day. These advances have culminated in what’s emerging as the next frontier of our digital lives: the metaverse.
Many bright minds still don’t quite grasp the concept — that the metaverse is simply an increasingly immersive and decentralized version of the internet — because no one really does. It’s still being shaped.
As it evolves, we’ll all start to understand more about how property rights to these virtual frontiers will come into play: who will hold and make use of them, what will they offer, and why; how they’ll be guaranteed, valued and traded; and how we’ll navigate what could be another dot-com boom, bubble or bust.
This is especially true for real estate professionals and businesses who are beginning to hear more about the metaverse's possible implications for the industry. In these metaverse worlds, millions of dollars are already trading hands for what’s being called “virtual real estate,” complete with land grabs, developers, architects, brokers and even tenants with leases.
As an astute real estate professional, you have every right to be skeptical. We keen observers here at LoopNet are as well. But why not get a jump on what to expect with this three-part series that asks and tries to provide an answer for just about every question concerning virtual real estate, starting with ones like “what is the metaverse?” and diving into hard-hitting ones like, “someone paid how much to be Snoop Dogg’s digital neighbor?”
Commercial Real Estate Industry, Meet the Metaverse
While it's easy to be indifferent or even dismissive of the metaverse and the associated concept of "virtual real estate," shrewd investors and businesses still want to have a pulse on the concept — and guides like this one are a good place to start.
3 Ways Metaverse ‘Land’ Acts as Quasi-Commercial Real Estate
If you’re still skeptical, you’re in good hands. LoopNet has narrowed down several broad uses for the metaverse that may be relevant to the commercial real estate industry, at least for now.
Investors Should Know These 5 Things About Virtual Real Estate
While it may seem like a game, the metaverse zeitgiest is riding a wave of serious cash. Investors clamoring to grab virtual real estate should understand a few key caveats to the digital land rush to help determine whether they might want to ride the swell or simply stay on the shore.
