WHY THE UN-REAL ESTATE MARKET IS HOT PROPERTY

A guide to navigating the virtual property market and assessing the risks involved.

It’s not just the real estate market on your front doorstep that’s booming, it’s also the one that’s inside your phone, laptop, computer, or virtual reality headset where property prices are rising by the minute.

Australians are investing in the newest non-fungible token (NFT) market frenzy, pixelated real estate that you can buy, sell, and rent without stepping foot in the door.

What is the metaverse?

The metaverse is a seamless amalgamation of gaming, social media, and e-commerce. It is a series of immersive digital worlds where users can play video games, buy digital commodities including real estate, go to school, work, conduct meetings and so on. Despite the world being intangible, the money being invested into these augmented spaces is very real. According to NOW.ai, over $100 million has been deposited into buying land plots in the metaverse.

What is virtual land?

Investors are entering the metaverse and using the environs’ digital assets – such as crypto currency – to buy cybernetic plots of land that they can buy, sell, or lease as they choose. The fundamentals of the ‘un-real estate’ market are akin to those in the physical world around us. Two primary factors in determining the value of land plots in the metaverse are: scarcity and location. However, capital gains through the appreciation of these properties aren’t the only way Australian’s have been making money from these computer-generated plots. They can also be rented out for a short or long time period and hired for specific events or functions.

What are the risks?

There’s always a risk to every investment and as with any experimental venture, real estate experts at Code Property Group strongly advise any potential investors to do their research before taking the plunge into cyberspace property ownership.

Are you interested in investing in the real world? Contact our team today. 

Sources: realestate.com, ABC News, Business Insider