Metaverse is a 3D virtual space where users can interact with each other and the virtual environment.
Recently, the metaverse has entered the real estate world.
Companies are offering real estate (virtual spaces) to buy, sell or rent. Individuals and institutions are wondering if it is really wise to resort to this new form of investment. Decryption of the Mobilis Group.
Real estate in the metaverse: what are the advantages and the main challenges?
The benefits are many:
- Flexibility: Internet users can visit virtual real estate properties from anywhere in the world. Owners can reach a wider target audience while buyers can save on travel costs.
- Affordability: The prices of virtual real estate are lower than traditional real estate. Indeed, the entry ticket is only 50 Eur. Transaction fees and taxes are lower.
- Security: An immutable record of all real estate transaction history remains.
- The removal of intermediaries from the value chain, the elimination or reduction of commissions for these different actors.
- The emergence of new levers to make his investment grow, various mechanisms of Decentralized Finance (DeFi) exist.
On the other hand, the challenges are :
- The "too new" character of this form of investment: the market is still young and the risks can be high. It is crucial to study the offers well before taking the plunge.
- The speed of adoption of these new technologies by the various players in the value chain.
- The regulations governing new technologies must evolve to avoid grey areas. The metaverse does not yet have clear regulations for real estate, which can lead to certain dubious commercial practices.
Where to start?
It is essential to understand and master the mechanics and tools to be used to explore these new types of investments.
There is a lot of online content available for serious research.
A real estate investment in the metaverse certainly represents a cost.
Conclusion
If you are interested in buying square meters in the metaverse, be careful and do thorough research before you make a decision.
The use of blockchain is making the real estate industry and transactions more efficient and open to all. Many blockchain-related concepts, technologies and startups are emerging. The fractionalization and digitalization of a property allows to own only a part of it (from 50 Eur).
