It’s something entirely new in the real estate world – it’s the Metaverse. It melds both the virtual and physical worlds and is a complex combination of virtual space, content, experiences, and more. Don’t worry, though, if you haven’t heard about it or don’t understand it. You’re not alone in that. In fact, the Metaverse likely won’t be fully realized for years to come (maybe even decades) owing to the current limits in technology. But it just may wind up shaking things up . . . a lot. So let’s examine how the Metaverse may change the real estate world for buyers and sellers in Riverside.
What Is the Metaverse?
It has been said that the Metaverse has the potential to be a successor to the Internet. And therein lies an important way it may profoundly impact real estate.
The Metaverse “makes use of virtual reality, augmented reality, the internet, and other tech to create shared digital experiences, spaces, and content. People can access the Metaverse from devices like smartphones, laptops, and VR headsets.” But it remains a fairly “nebulous concept that’s impossible to completely define because it hasn’t been realized yet.”
Still, there are some identifiable core attributes. “The Metaverse will be always on (much like the internet). It will also be a living experience that exists in real-time. And, it will have no limits on users, while possibly providing each user with a unique digital identity.”
In addition, it “will have a fully functional economy and provide an experience that exists in both digital and physical realms.” Interoperability will be a central aspect of the Metaverse. “Instead of digital spaces being completely separate, people will be able to move digital items, data, content, and more across the Metaverse. For example, instead of items being confined to a single game, the user can move any item between any game.”
The thing to keep in mind about the Metaverse – which currently is abstract and largely undefinable – is that it isn’t just a virtual world or games or virtual reality and spaces or a platform for user-generated content. It is none of these individually because they all have a place in the Metaverse.
How Does/Will It Impact Real Estate
So how is the Metaverse impacting real estate and how may it change the real estate world for buyers and sellers in Riverside?
Real estate is becoming increasingly digitized, and, owing largely to the Metaverse, virtual real estate investing is beginning to supplant traditional methods like in-person showings. “It is a cost-effective option to invest in out-of-state properties without the need for travel. It can also simplify the process of scouting for off-market properties, without having to drive around neighborhoods. To start as a virtual real estate investor, all you need is the right tech and resources.”
But there’s more . . .
Buyers and sellers can further than using the Metaverse to interact with physical properties. “[T]he Metaverse also houses virtual properties you can buy and sell. In virtual worlds like Decentraland, you can buy and sell properties in the form of NFTs.”
And there’s huge opportunity there too. “With interest in virtual property skyrocketing, sellers can make as much as 500% more selling virtual property vs. physical property.”
Now, let’s look at some illustrative figures to see the Metaverse is impacting real estate . . .
According to industry watchers, Metaverse real estate sales “topped $500 million last year and could double this year . . . Real estate sales on the four major Metaverse platforms reached $501 million in 2021, according to MetaMetric Solutions. Sales in January topped $85 million, the metaverse data provider said. It projects that at this pace sales could reach nearly $1 billion in 2022.”
A lot of this recent surge is attributable to Facebook’s announcement that it was rebranding as Meta for a concentrated Metaverse focus. Facebook made its announcement in late October, and “[r]eal estate sales surged nearly ninefold, to $133 million, in November.”
Experts expect the Metaverse real estate market “to grow at a compound annual rate of 31% a year from 2022 to 2028.” The risks are big – but then so are the potential rewards.
Some Things Stay the Same
In a few ways, the Metaverse may not change the real estate world for buyers and sellers in Riverside much at all.
Some experts say that, just as with real estate in the real world, location in the Metaverse is everything when it comes to real estate.” For example, “[p]rices for parcels near Snoop Dogg’s planned partnership and virtual world in Sandbox are fetching a premium, along with parcels near the Atari development.”
And all the hype may be just that because “others say Metaverese land is just the latest iteration of the crypto Ponzi scheme, luring unwitting investors into projects that may eventually prove worthless. Real property involves natural scarcity, but “virtual land is easily created with code.”
Use a Tech-Savvy Real Estate Agent
The Metaverse may change the real estate world for buyers and sellers in Riverside. But then again it may not change it all that much in the long run. But either way, if you want to get in on this opportunity you better have a tech-savvy Riverside agent in your corner. If you want successfully use the Metaverse for real estate, be sure to contact us today at (866) 593 7012.