Luxury Real Estate in the Metaverse

Luxury also conquers the Metaverse, including real estate investments, virtual prestige homes and proptech: new buying and selling opportunities have advantages and risks. Let's see together which ones.

The luxury real estate market is constantly evolving, and the Metaverse is rapidly emerging as one of its new fronts. With the advent of immersive technologies and virtual reality, we are witnessing an unprecedented transformation in the way people buy, sell and interact with luxury properties.

Metaverse between Reality and Virtuality

Metaverse is a virtual universe inhabited by users represented by avatars. In this digital space, people can interact, work, play, and even own virtual properties. This is where the concept of luxury takes a new form. Virtual prestige properties offer investors a unique and personalized experience, allowing them to explore exclusive spaces from anywhere, at any time.

Thanks to virtual reality, potential buyers can explore luxury homes in a whole new way, through immersive virtual tours that allow them to view every detail with a maximum level of realism.  This is a way to accelerate the purchase decision-making process.

Investing in the Metaverse

As interest in the Metaverse increases, we are also seeing growth in investment in luxury virtual properties. Companies and investors are buying virtual land in premium areas of the Metaverse, anticipating an increase in demand and value over time.

For those interested in purchasing property in the Metaverse, it will be necessary to have specific cryptocurrencies in their wallets so that they can invest in virtual land on which they can build or undertake other transactions to increase the value of the acquired lot. Such properties can then be rented or sold, through consultants or specialized real estate agencies.

Real estate investments in the Metaverse are gaining in popularity, with platforms such as The Sandbox, Otherside and Decentraland offering unique opportunities for investors to own virtual land and digital properties.

Between building construction, virtual business development, or interactive experiences, some 270,000 metaproperty can be purchased on Cryptovoxels and Somnium, for example.

Major brands and companies have also entered the digital world to hold virtual events. Such as Gucci, Dolce & Gabbana, Louis Vuitton, and Etro, which have opened flagship stores in Metaverse Fashion Districts.

metaverse Virtual real estate Luxury real estate

Investing in Luxury Homes: the Real Estate Metaverse Trend

The term Metaverse evokes a 3D digital space enriched by augmented and virtual reality, enabling users to immerse themselves in personal and professional experiences in a digital environment. In the real estate context, the Metaverse includes properties that serve as a platform for buying, selling, and renting. Here, users can explore virtual properties and get a realistic experience of their design and layout.

Real estate in the Metaverse is experiencing increasing adoption by companies seeking to expand their digital presence. Thus we are seeing the creation of virtual spaces and property management through the use of “digital twins,” or virtual copies of future real estate. The technology allows users to show spaces and provide an idea of how buildings would function in reality, using models and algorithms.

The main trends that are driving the growth of the Metaverse market in luxury real estate include the growing popularity of digital assets and virtual property ownership.

Virtual real estate represents a new market segment based on the buying and selling of virtual land in metaverses. The first purchase was made in 2017 by Metakovan, an investor known to the cryptocurrency world, who bought a piece of land on Decentraland for $60,000 in Ethereum. The event marked the future of the entire market whose share-expected to increase by $5.37 billion from 2021 to 2026.

It is expected to grow to $828.95 billion by 2028, according to a PwC report on virtual land sales.

metaverse Virtual real estate Luxury real estate

Metaverse and Luxury Real Estate: Data and Projections

According to Expert Market Research, the value of the real estate market in the Metaverse reached a value of about US$1.14 billion in 2022. With a projected growth of 48.60 percent between 2023 and 2028.

Blockchain and NFT are further fueling the industry, with virtual real estate potentially reaching a value of $12.27 billion by 2028, adding a new market segment based on buying and selling virtual land in the Metaverse.

However, after an initial expansion, the virtual real estate market has reversed the trend. As of early 2023, land in the Metaverse has lost two-thirds of its value and transaction volume has declined by 87%.

Currently, there are about 30 Metaversi that deal with the sale of digital real estate. Platforms on which about 270 thousand digital real estate meta properties of different sizes are on the market. Into this scenario comes so-called proptech-a term born from the union of property and technology that indicates the use of technologies and tools in the marketplace in real estate.

metaverse Virtual real estate Luxury real estate

Who chooses Metaverse Realty?

Immersive solutions are used by real estate agencies or architects’ and designers’ studios to help buyers choose their ideal home or develop their own personal design. They offer the chance to preview through the Metaverse a home that does not yet exist.

These new real estate horizons will open up the industry to new economies and new ways for private individuals, home builders, and furniture suppliers to work together, but this is still a nascent market about which no firm predictions can be made.

Dreamer Real Estate’s team of experts is available to offer you personalized advice on buying, selling or renting luxury real estate in Tuscany.

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