The term virtual world or metaverse exists only in the pages of science fiction novels, nowadays, the word “metaverse” is one of the most popular words in technology and the cryptocurrency world. But could the metaverse have pros and cons for the real estate market?
Positives of the metaverse for the real estate market
- Increased prosperity and activity in the real estate markets, as digital real estate sales across the various Metaverse platforms reached nearly $ 500 million in 2021, and according to data and reports issued by MetaMetric showing that digital real estate sales in January of this year 2022 exceeded the $ 85 million barrier, and sales in general are expected to reach nearly $ 1 billion in 2022.
The availability of immersive virtual home tours that can be 3D virtual tours, or video-based presentations, coupled with the ease of use of virtual reality and augmented reality, makes Metaverse a real impact on real estate and the real estate market.
MetaMetric shows that January 2022 real estate sales are expected to reach $85 million.
- The emergence of the idea of housing exchanges as a global concept based on the disappearance of geographical borders between countries, and it will also entail the gradual disappearance of the role of real estate brokers, especially as the idea spreads.
- Facilitating the work of real estate developers by saving the inspection time for the customer and the company, as this period is expected to range between 30 and 60 minutes.
Cons of Metaverse for the real estate market
- The activation of Metaverse technology in the real estate market must be subject to regulated rules to ensure its safe use, especially since it will rely on the trading of a non-existent asset.
Metaverse for the real estate market
- The metaverse real estate market is an emerging market that does not have a large user base and real estate investment is risky.
If Metaverse is shut down or fails, the investor's investment will go down with it.
In the end, the question remains, will we see Arab investors pouring money into this type of investment?
*Architect and faculty member at King Saud University @Archesham
