Metaverse in Real Estate

The Metaverse is a concept that has generated some controversy among internet users. It is a diffuse and broad concept that refers to a type of virtual world that tries to replicate reality through digital devices. It is a shared collective and virtual space, constituted by the sum of “virtual reality”, “augmented reality” and “Internet”. Metaverse or MetaUniverse refers to something beyond (meta) the Universe and is closely related to the next generation of Internet, describing an immersive experience in the applied use of devices and technologies on the Internet.

Despite initial concerns regarding information privacy, user addiction and problematic use of social networks and some experts considering that the Metaverse could be used as an ‘escape’ from reality in a similar way to existing Internet technologies, the Metaverse is in vogue.

YouTube has already confirmed its interest in this new trend. Google’s video platform reveals that it wants to start creating new experiences in the Metaverse, starting with gaming (virtual reality games).

In a post on the platform’s official blog, Neal Mohan, YouTube’s Chief Product Officer (CPO), explains more about the company’s plans, detailing some of the new features in its roadmap for this year. The CPO explains that YouTube is thinking of new ways to make the content viewing experience more immersive.

But the trend is spreading to other sectors having already reached the real estate market. We all know that in 2020 the real estate market boosted its virtual era, starting to trade via video calls and virtual tours. However, the trend for this year is the commercialization of completely digital properties and land available in the Metaverse.

According to a study carried out by Bloomberg Intelligence, this virtual reality represents a market opportunity of approximately 800 billion dollars. The trend to commercialize virtual houses and land is expanding at high speed.

During 2021, the sale of properties in Metaverse reached 500 million dollars (about 444 million euros) worldwide, according to CNBC (Consumer News and Business Channel). This value appeared in a report prepared by MetaMetric Solutions, having been based on the four most important virtual platforms today: The Sandbox, Decentraland, Cryptovoxels and Somnium Space.

In fact, real estate is expected to continue to grow in this universe. The same report indicates that sales recorded in January 2022 alone reached 85 million dollars (75 million euros). And even if the trend continues, they could reach 1,000 million dollars (888 million euros) over the course of the year, that is, double what was achieved last year.

Neighbouring Spain already has its first Metaverse – Uttopion – which has recently started selling digital land with prices ranging between 2,000 and 20,000 euros.

So far, Uttopion has closed meetings with 1,000 interested parties in the 1,000 available slots. After making the purchase in Metaverse, Uttopion gives the owner a piece of land, which is an NFT ERC-721 with a unique code guaranteed by a digital contract. This property can be operated by the owner through rental or sale in accordance with the terms and conditions.

As for the type of available lands, Metaverso Uttopion offers different models and different prices:

• Content Terra: the “most basic” type of land used to generate content;
• Art Terra: reserved for concept art and NFTs;
• Delivery Terra: which is for companies with a ‘delivery’ service;
• Branding Terra: land for promotion and marketing activities;
• Finance Terra: for financial products, banks and cryptos;
• Shop Terra: for any type of store, mainly e-commerce;
• Insurance Terra: for products related to the insurance industry;
• Joker Terra: only for investors, as they are exclusive lands.

In the end, Uttopion’s metaverse is a reflection of the real world, where lands are also licensed.

Apparently, virtual reality seems to want to conquer the real world and it is an area to which companies can no longer remain indifferent.