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What Is Metaverse and How It Will Change the Real Estate Industry

From RealChain’s Web3 Research Institute

What is metaverse? This question has been popping up more and more lately as the concept and ideology looks to potentially revolutionize the real estate industry. According to venture capitalist Matthew Ball, “The Metaverse is a massively scaled and interoperable network of real-time rendered 3D virtual worlds which can be experienced synchronously and persistently by an effectively unlimited number of users with an individual sense of presence, and with continuity of data, such as identity, history, entitlements, objects, communications, and payments.” 

These features allow for more streamlined and efficient buying or selling of property. However, will the metaverse be able to live up to its potential? Only time will tell. Here's a closer look at what metaverse is all about and how it could impact the real estate market.

What Is the Metaverse?

The definition of the metaverse varies with each person. The term was coined by Neal Stephenson in his science-fiction book “Snow Crash”, describing an online, virtual world where humans could connect and escape reality. Although a technical definition seems far-fetched as of now, owing to the expanding scope of the technology, the metaverse can be described as a spectrum of digital reality. Experts say that the metaverse is an interconnected collection of immersive, three-dimensional virtual worlds that will one day serve as the gateway to most online experiences.

According to Wikipedia, “In futurism and science fiction, the metaverse is a hypothetical iteration of the Internet as a single, universal and immersive virtual world that is facilitated by the use of virtual reality (VR) and augmented reality (AR) headsets”.

In simple terms, the metaverse is a collection of shared three-dimensional digital environments or spaces that can be utilized for a variety of purposes including but not limited to social interactions and commercial undertakings. Large corporations that majorly include gaming technology companies are fabricating the foundations of the metaverse at their best paces. Although juggernauts like Apple, Facebook, and Google are competitively attempting to create an outstanding immersive experience, the metaverse is primarily commercial.

Real Estate in the Metaverse

Plots of land or virtual residential and commercial buildings are called real estate in the metaverse. Any form of real estate, including public spaces, commercial areas, corporate headquarters for business activities, brand showrooms etc., may be built. 

In the simplest sense, digital real estate is made up of voxels; similar to pixels but representing a value on a regular grid, defining a point in three-dimensional space. They are programmable spaces in digital and virtual reality platforms. Users in the metaverse can engage in various activities like socializing, gaming, attending virtual concerts, etc.

Imagine a world without physical boundaries—where you could own land, build communities, and explore vast, virtual landscapes. Welcome to the world of the metaverse: a shared space that represents the convergence of digital and physical reality. This cutting-edge technology is now applied to real estate, offering unique opportunities for all investors. In the metaverse, housing units can be crafted as meticulously detailed 3D models instead of constructed on location—saving time, resources, and money. Buyers can fully understand their investment with an immersive virtual tour before committing to rent or purchase. Land owners can enjoy innovative rental experiences designed for the metaverse, such as renting out virtual office spaces or homes. With its diverse range of creative possibilities and disruptive applications, investing in real estate in the metaverse is brilliant for those looking to stay ahead of the future.

Impact of Metaverse on Real Estate

Currently, the housing or real estate market is increasingly becoming more complex . Renters or buyers are forced into bidding wars for comfortable and decent housing. However, there are no indicators that the real-estate demand in the metaverse will slow down anytime soon. Although investing in metaverse real estate seems hazardous, it is gaining traction with every passing day and every step forward in technology.

As a use case, we may create a programme that accurately maps out an identical digital twin of real estates  in the metaverse, helping engineers and builders to view an accurate representation of the real site from the comfort of their homes or workplaces. They would be able to spend less time traveling to these multiple site sites, allowing them to conduct site surveys, make more precise status reports, and make better planning. In comparison to conventional construction sites and related activities that involve site visits, measurements, and other factors that include possibilities of human error, metaverse promises a much better experience.

Recently, the metaverse real estate market has been developing in leaps and bounds. Some of the leading brands have already started purchasing land and creating virtual properties. These early adopters are eager to lay the groundwork in the metaverse to outpace their rivals by also creating immersive and engaging experiences for younger generations.

How to Invest and Win in the Metaverse?

Although the metaverse is still evolving, investments and commercialization have begun and are growing in scope. The metaverse offers multiple commercial opportunities from conducting virtual events to digital real estate. If you are looking to invest in the metaverse’s commercial spaces, here are a few investment opportunities you can consider to ensure that you are better-equipped:

Buying Land in Metaverse

In the Metaverse world, buying land is one of the easiest options. You can invest in leading metaverses such as: Decentraland and Sandbox, or opt for Otherside -a 3D MMORPG (Massively Multiplayer Online Role-Playing Game). You either can lease your plot of land as is or build virtual properties, such as hotels, shops, casinos, stadiums or arenas to name a few. Companies like Nike, Atari, Samsung and Adidas are some of the big names that own virtual properties in Decentraland and the Sandbox. Future metaverse landlords will want to watch this space for potential lucrative investment decisions.

Non-Fungible Tokens

Metaverse investments can range from renting or owning land in one of these virtual worlds to tokenizing properties with Non-Fungible Tokens (NFTs) and collecting royalties on digital assets. As more people commit their money to projects within the metaverse, investors should take the time to develop a strategy that considers long-term potential and short-term rewards. 

By tapping into data sources such as market analysis indicators, social media sentiment, and project roadmaps, investors can get an edge over the competition and make informed decisions about where to put their money for maximum returns. With the right approach, metaverse real estate investment could be an incredibly lucrative venture for years to come. Republic Realm, a leader in metaverse and NFT innovation & investment, provides regular reports on best buy of land. 

Get Ready for the Metaverse With RealChain

At RealChain, we have been analyzing these changes in the real estate industry for some time. With the rapidly changing technology, you can rest assured that we will always help you make the best decisions with your digital real estate needs.

With real estate agents and brokers at the center, we are opening up lucrative opportunities to assist early investors in both realms - the real world and the metaverse. Joining RealChain will enable you to make informed decisions based on data, not speculations. Ultimately, we want to empower our members and clients to become winners in the metaverse. 

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