How the Metaverse Will Impact Impact Real Estate The metaverse is one of the hottest topics in real estate right now.
Opinions expressed by BIZ Experiences contributors are their own.
The emergence of the metaverse is creating waves across many industries, with big brands like Nike, Coca-Cola, and Walmart pioneering the virtual world.
The metaverse blurs the line between the physical and virtual worlds through sophisticated AR (augmented reality) and VR (virtual reality) technology. People who experience the metaverse can enjoy everyday activities with the benefit of exciting virtual features that aren't even possible in the physical world.
Ever thought about what it would be like to watch a baseball game from the pitcher's mound or swing through New York City with your favorite superhero?
Visionaries are saying that just about anything will be possible in the metaverse. What an exhilarating prospect. And even better, the metaverse was created to promote being social and coming together to build communities. From exploring virtual fashion districts to congregating at church, there's a corner in the metaverse world for everyone.
Because real estate can be a consumer's most cherished possession, the metaverse is one of the hottest topics in the real estate industry right now. It can give buyers another opportunity to feel the rewards of owning property.
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CNBC reported a 500% increase in plot prices across top metaverse projects. So while we're still in the early stages, the metaverse is already driving millions of dollars into virtual properties.
Digital storefronts, virtual gaming, entertainment and even private islands are among the most attractive investments today. But again, with big retail brands like Nike and Louis Vuitton getting into the game, and legendary artist Snoop Dogg hosting full concerts, who knows what will happen in the virtual shopping world.
While it seems there's endless potential and experiences to be had, many businesses may view the large investment of capital, in addition to bullish forecasts about financial growth opportunities, as an indication that the metaverse could be creating a bubble. At the same time, prices for space in this virtual land of possibilities have skyrocketed, with trends suggesting the virtual real estate industry will be a $5 billion market by 2026.
What does this mean for real estate investors? For starters, much like a traditional real estate investment, as the demand for these virtual plots of land rises, the value will also continue to increase. Virtual real estate investments have developed to the point where owners can now earn passive income through their virtual tenants.
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But there's more than just the swallowing up of land and property that we should all keep our eye on. Because real estate is a relationship business, the metaverse offers exciting opportunities for professionals and their buyers and sellers to interact, as well as for offices and entire communities of realtors to virtually come together.
This is something we've all grown more accustomed to given the restrictions of the Covid-19 pandemic. During the pandemic, real estate professionals adopted new technologies and became more comfortable interacting remotely with clients. This has built the foundation for realtors to open virtual doors in the metaverse.
Virtual education, communing, exchanging referrals and celebrating as a team could all become a part of a real estate office's overall culture, which would have added benefits for new and experienced real estate agents. This is the perfect opportunity for an organization to continue to build its vibrant culture in a new way.
It also gives us another way to train and engage our real estate professionals as we are committed to providing ongoing business coaching to ensure their success. Virtual training rooms? Absolutely. We checked that box during the pandemic, providing weekly accelerated training, and now we look to take that momentum into the new world.
But the drive to innovate must be tempered by realism. We shouldn't innovate for innovation's sake; we should do it to make lives better. We should continue to watch how the metaverse develops, learning from failed trends as they all bring some form of lasting change.
Only time will tell whether the metaverse truly takes off, weaving itself into the fabric of our technological future. Either way, we should all be watching and remain ready to explore and pioneer where we can to better the lives of our real estate professionals and our communities.
