In order to understand the digital real estate definition, we first need to cover the basics about virtual reality, also known as the Metaverse. The metaverse is a virtual reality that will allow you to interact with other people within the virtual reality space. While the metaverse is still developing, metaverse real estate is slowly starting to show up on the radar of real estate investors. Being intrigued about what this digital real estate means is to be expected with how fast this new reality is growing.
People who explore the virtual reality of the metaverse can build their dream digital spaces as there already are platforms where you can buy virtual real estate. These platforms are Decentraland, The Sandbox, Somnium Space, and CryptVoxels. Still, let’s see what digital real estate is and see where we can go from there?
The digital real estate definition is an asset that exists in the digital world and it can be owned and monetized. While some real estate agents usually close deals with the use of digital tech in the real world, soon they’ll start selling real estate in the digital world as well. As we mentioned above, the four platforms allow people to purchase digital real estate in the metaverse. So far things are simple. However, e-commerce stores like H&M,Facebook, the Guardian, and blogs are also types of digital real estate.
The difference between the two is that while H&M and the Guardian are websites that offer us a two-dimensional experience in the real world, digital real estate in the metaverse can be a three-dimensional virtual home, a virtual club, a virtual office. In other words, digital real estate in the metaverse is what real estate property is in the real world but for the metaverse.
Just like in the real estate market where real estate investors purchase properties with the intent to make a profit, digital real estate investors are investing in this new kind of real estate. This new market is slowly becoming a multi-million dollar industry.
Digital real estate in the metaverse is already available for purchase as the rapper Snoop Dog just proved through the $450,000 digital property he purchased named the Snoopverse. The property is located on virtual ground on the Sandbox. Major companies are also investing in lots, acres or plots in Decentraland or Sandbox.
The fact that we already know the amount of dollars Snoop Dog had to pay to become a digital real estate owner, tell us that there is value in digital real estate. Still, is that value attractive enough for people to start investing in digital real estate, or will it remain something that only very wealthy people will be able to afford?
Well, digital real estate acts similar to actual real estate. When you buy land in the metaverse, that piece of land is evaluated for a certain amount of money. Once you own the land, the value of the land can appreciate naturally based on supply and demand,or it can be forcefully appreciated by adding value. This is similar to how when you buy land in the real world, the land can appreciate due to demand and supply or by building something on it. The amount of virtual land that is available for purchase is, so far, limited. A growing interest in digital real estate will lead to digital real estate value appreciation.
But don’t forget! Even a blog is a form of digital real estate so you might already own digital real estate.