The term virtual world or metaverse exists only in the pages of science fiction novels. But could the metaverse have pros and cons for the real estate market?
Positive 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 have exceeded the $ 85 million barrier and sales in general are expected to reach nearly $ 1 billion this year 2022.
- Providing an immersive virtual home tour that can be 3D virtual tours or video-based presentations, coupled with the ease of use of virtual reality and augmented reality, Metaverse is making a real impact on real estate and the real estate market.
- The emergence of the idea of housing exchanges as a global concept based on the disappearance of geographical borders between countries, 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 in the new technology.
Cons of Metaverse for the real estate market
- The activation of Metaverse technology in the real estate market should be subject to regulated rules to ensure its safe use, especially since it will rely on the trading of a non-existent asset.
- 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 closes 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
