What Does Real Estate on the Metaverse Look Like?

The metaverse can be home to virtual residences or act as a sales tool for very real properties.

our concept of the metaverse isn’t new to the 21st

century. The idea of a computerized dimension—an artificial realm in which human visitors could assume other identities, experience fictional adventures or live in impossible environments with other avatars—is as old as science fiction could manage.

The hotly competitive sphere of real estate interacts with that metaverse in two distinct ways—one rooted in a virtual domain of NFT (nonfungible token) ownership, and the other offering sales tools anchored to the very material business of real-world sales.

The Virtual World

A parcel of land or a private building closing for more than $2 million is rarely considered news—unless the property in question doesn’t exist in the realm of the five senses. Within the last six months, two virtual real estate deals ran north of that number for the first time in history.

In November 2021, a virtual plot in the blockchainfunded universe of Decentraland sold to the equally virtual real estate firm Metaverse Group for a very real $2.43 million. The Metaverse Group’s parent company, Tokens.com, reports the space will largely be used for virtual fashion shows.

Then, a playing environment for the videogame Axie Infinity sold for $2.48 million in February 2022 to a private buyer, who paid using cryptocurrency.

While bitcoin and other cryptocurrencies are experiencing instability, Rolf Illenberger, managing director of virtualreality developer VRdirect, said the adjustments of blockchain currency won’t stop the sales of metaverse properties.

“People have the desire to express their individuality and character through these luxury items in the real world,” Mr. Illenberger said. “A digital Rolex, ensured by NFT, will have the same status as a real-life Rolex. You are what you own.”

Daniel Yurcho, NFT consultant, insisted that a virtual real estate boom is under way and will continue through any blockchain uncertainty. “Virtual land selling for millions of dollars is wildly speculative at this point,” Mr. Yurcho said. “It’s a gold rush, and companies don’t want to be left out of these metaverse opportunities.”