“Metaverse” is a term all of us are hearing quite often now, most of us still not sure what all the buzz and hype is really about. This term has now become a part of daily conversations for many, but how do you get yourself to take an active part in these discussions if you are not entirely sure about the concept of the metaverse and the theories that come with it?
To begin with, the question that arises is - what is the metaverse and how is it relevant in the real estate market?
Put simply, the metaverse is a virtual world where people can perform activities and tasks they would usually perform in real life. From holding meetings to buying property, everything is possible in this 3D world. Performing activities will lead to the creation of a parallel economy that will progress side by side with our real-world economy.
Is this not something that all of us have only witnessed in movies and wish to have experienced in real life too? Even though its creation will take a while and the tech industries are still at work to perfect the concept, experts feel it is important to understand this world before you enter it. While you perform similar activities in the metaverse too, the phenomenon is relatively new and making mistakes is a part of understanding such concepts.
Let us focus solely on real estate now. Real estate and the metaverse are related in a way that the metaverse is generating a lot of interest from investors, buyers, sellers, and other players in the real estate market. This alternate universe can become a source for finding real estate agents, probably buyers, and venture capitalists from all across the globe.
While there are a lot of unanswered questions and concerns about the metaverse, this uncertainty is leading to a lot of rumors too. There is so much information floating around that people have now started collecting information that is false or inaccurate. If you have ever been a part of the real estate market, you know that inaccuracy is not something that will take you a long way.
Currently, there are quite a few misconceptions about the relationship of the metaverse with the virtual real estate sector floating in the air. People usually mistake these rumors for facts and end up ruining all their research and plans. Let us clear these out for you.
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Myths about Real Estate in The Metaverse
Investing in Metaverse will Lead to Losing Money
If you do everything right, there is nothing that can lead you to lose money. Currently, there are 4 major metaverse platforms in play and their sales in 2021 prove that this assumption is just a myth and nothing more. Sales in 2021 reached 501 million dollars, and in January 2022 the sales crossed 85 million dollars! It is predicted that the sales can exceed 1 billion dollars this year, more than double what was seen last year.
While the stock market has experienced a dip and people have lost money, this has not affected the metaverse in any way. The virtual world has created a financial atmosphere that is healthy and yields profits for most.
The Metaverse has no Real Life Productive Uses and is just a Gaming World
This is probably one of the biggest misconceptions that people have about the metaverse. The moment you realize that the metaverse is a virtual platform and 3 dimensional, you automatically assume that it is nothing more than a video game.
The truth is that since last year, most people use this platform for professional work and in an attempt to increase their daily income. Every company in this virtual world is serious about delivering results and satisfying their clients. More and more brands are entering the metaverse in an attempt to increase their sales and revenue. Existing players have opened branches in areas where they have the majority of their customers to ensure that they can market their brands and persuade more people to access their company through the metaverse. Finally, some companies have also introduced a new feature where employees can interact with probable and existing customers through a platform (for instance, Virbela) that is strictly business-specific.
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You Cannot Access The Metaverse without a Virtual Reality Helmet
While it is true that there are platforms on the metaverse that give you an option of wearing gears like helmets, it is not at all a requirement to access the virtual world. If you have a liking or interest in owning a virtual reality helmet or any other specialized gear, you can go ahead.
However, most renowned real estate platforms only require you to have a laptop or a smartphone. The metaverse platforms are designed in a way that they can be accessed by a common man without spending money or time on anything extra.
The Metaverse Platform will Not Last Long
There are 4 major players in the metaverse world - Somnium, Decentraland, Cryptovoxels, and Sandbox. These platforms have lasted more years than was initially expected.
Let us take a look at players that are not too popular but are still operating. Second Life was discovered in 2003 and has more than 2,00,000 users that visit daily to sell, buy, rent and lease metaverse real estate. There are more than 50,000 active users logged in every second and the platform is currently planning expansion and introduction of more features. Do you think a community that is this diverse and this strong, will not last?
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Metaverse is Nothing but a Pyramid Scheme
You can consider this true if you want, but is this not the same case with investing in real estate in real life too? Will you call the real estate market in the physical world a pyramid scheme too? When you think of it, the real estate sector is all about gaining profits and increasing values till the time you end up losing interest in a particular city or a trending locality where a property is located.
If you trust real-world real estate, remember that the metaverse real estate has pretty much the same characteristics too. Be it uniqueness or scarcity of good properties, you will find it all in the metaverse. The competition is tough, the good properties are rare, and if you know how real estate works - the metaverse is guaranteed to yield you profits too.
While the creation of a united single metaverse is nowhere close, a lot of developments are taking place in the tech industry. As a buyer, seller, or even an investor - we suggest that you start integrating technology into your daily lives and familiarize yourself with the virtual world.
Yes, busting these myths may not have answered all your doubts and concerns. The reality is, there still exists a lot of vagueness and confusion when it comes to the metaverse and how it will operate. However, you cannot let this fear get to you. We feel that with time everyone is going to gain the clarity that they are looking for and when that time comes, you would want to be well researched and ready to dive into this new virtual world.
One thing is for sure - the metaverse is a great place to invest in real estate. People who think that this is just an artificial world or no less than a game have got it all wrong. The best thing is that you need to follow the same process that you would follow in the real world to purchase, sell, or invest in a property. The only difference is that the metaverse opens you up to a variety of opportunities that would not have been possible otherwise.
Now that you have an idea of which information is false and which is accurate, take the next step and choose your metaverse platform. Create your real estate world to buy properties, become a real estate investor, and sell to probable buyers with increased profits!