There have been a TON of news articles lately about people “buying real estate” in the Metaverse. As an agent here in the physical world, does this impact you? Should you even care? Let’s dive in.
Essentially, the Metaverse is a collection of 3D worlds, which exist virtually. A user can interact with these worlds with a virtual avatar, and they can be accessed via your computer. Although I definitely see a time, in the near future, where these worlds become accessible with virtual reality (or augmented reality) goggles, like Facebook’s Oculus Goggle.
Image credit: Ledger Insights
For now, the main “worlds” to be aware of are Decentraland and The Sandbox. There is a wild land grab happening within these worlds, which I relate to the gold rush back in the 1800s. Each world has only x amount of land plots within them, and there is a rush to get those parcels of land while things are still relatively cheap.
Why would anyone care about plots of “virtual” land?
My answer is that these could make a great investment IF the Metaverse continues to grow. As the world moves more and more into the Metaverse, more and more events will begin to happen exclusively online, and advertisers go where the eyeballs go. Check out how the world has shifted in just the past two years, fueled largely by the pandemic. A large chunk of the workforce is now exclusively work from home, and another significant portion is hybrid.
Can you imagine a large employer opening up a virtual workspace in the Metaverse where all of their employees would have access in order to “go to work?” What about concerts or events? Right now, if Kanye West wanted to have a concert, he can only be in one city and play for what… 20,000-30,000 people? What if he hosted that concert online, in the Metaverse, and people could “attend” using their VR goggles.
He could potentially play for millions of people per night. Now, imagine how valuable the billboards surrounding that Kanye concert would be to advertisers, knowing that millions of people are tuning in. How the Metaverse works, the advertisers would be paying the “land owner” of that Metaverse plot. That’s where the investment portion comes into play.
What does this mean for you?
I tend to think of what’s happening now as a land grab, as opposed to normal residential real estate as we know it.
If you don’t think the Metaverse is going to matter in your lifetime, then why did you read this blog? If you think that it’s going to explode and become the future version of the internet that we know and love today, then it’s absolutely worth paying attention to.