Insight

Metaverse Real Estate: Here and Now

Metaverse Real Estate: Here and Now

Roy D. Oppenheim

Roy D. Oppenheim

December 4, 2021 02:12 PM

Looking to buy land? Want to invest in perhaps the most in demand real estate market? While one would traditionally scour specific areas to live, considering schools, zoning, work-life balance, cost of living, and other factors, the metaverse has attracted a frenzy of digital real property sales, setting records during the past few weeks.

Welcome To The Metaverse

What is the metaverse? While we had discussed real estate and the implications of the metaverse in a recent blog, the metaverse is an online world that stretches the corners of the internet into immersive, “four” dimensional experiences. The actual term metaverse comes from a 1992 science fiction novel by Neal Stephenson, and popularized by the Matrix, starring Keanu Reeves. This notion of science fiction is rapidly becoming front and center of our digital world.

Investment firms are actually acquiring land in the metaverse where gamers simulate real life, from shopping to attending concerts and other events. These virtual worlds, created by videogame developers, include cities where an individual’s avatar can spend time with avatars of real-life friends in their digital apartments or homes. The concept is this: as individuals and companies spend more money to use virtual homes and retail space in the metaverse, the values of such properties will increase as more and more people join.

Virtual Real Estate Development

Real estate investors are not only developing virtual residential real estate but also commercial spaces, where they will lease virtual retail space priced in either cryptocurrency or hard currency. Ownership of the land is recorded in nonfungible tokens, digital identifiers that serve as deeds. Sales of property are typically done in a cryptocurrency specific to each universe within the metaverse.

With Facebook changing its name to Meta Platforms Inc. last month and focusing on the metaverse, investment in virtual real estate is increasing. Republic Realm, a metaverse real estate developer, reportedly paid $4.3 million for land in the world of Sandbox, the largest virtual real estate sale to date, according to NonFungible.com, which tracks digital land sales. Headed by real estate investment executive, Janine Yorio, Republic Realm buys land from virtual world creators or third parties, pays architects to design virtual homes or malls and a game developer to build them. The Canadian investment firm Tokens.com Corp. reportedly paid approximately $2.5 million for land in the world of Decentraland’s Fashion District which it wants to rent out to fashion companies as event and retail space. Both Sandbox and Decentraland are two “worlds” within the metaverse.

Real estate in the metaverse, however, is risky. Unlike the “real” world, virtual real estate can fall to zero if people stop using the virtual world. Further, cryptocurrencies have been volatile, which effect the price and sale of virtual real estate. Zoning rules in the metaverse limit what and where a developer may build which also may lead to a market glut if there is too much development in a particular world. Just as in the real world, there will be contractual issues, easements, and boundary disputes.

As more and more individuals flock to the metaverse, the digital realms in which they “live” include artificial intelligence, virtual reality, streaming video, mobile gaming, and avatars that all combine into immersive digital experiences. Many in the tech space believe that the metaverse will grow into a fully functioning economy in a few short years that will be eventually integrated over time, fully into our lives just like e-mail and social networking does today.

Whether or not we are interested in the metaverse, the metaverse is here and growing tremendous momentum. How the “real” world will “connect” to the virtual world is evolving. Products and services in the metaverse may be then purchased and delivered to your “real” home or office. One may use a virtual drone in the metaverse to steer an “actual” drone in the real world to look at commercial or residential property. Real estate agents may use the metaverse to allow potential buyers to virtually experience walking through a home in the “real” realm. Furniture and interior design can also be scanned into the metaverse and uploaded to see how it would look within a real property.

What does all this mean?

The convergence of reality and virtual living is at cross-roads with the expansion and stretching of the internet to include the metaverse, a Twilight-zone place where we all can conceivably live, buy, and sell property, be social, and purchase goods. How the actual real estate market will evolve may depend upon our ability and desire to embrace it. While the metaverse is truly a “game” changer, there are opportunities that will continue to emerge as our real world, augmented reality and virtual reality begin to converge into one seamless existence for human civilization.

Originally posted at: https://southfloridalawblog.com/metaverse-real-estate-here-and-now/

Trending Articles

2025 Best Lawyers Awards Announced: Honoring Outstanding Legal Professionals Across the U.S.


by Jennifer Verta

Introducing the 31st edition of The Best Lawyers in America and the fifth edition of Best Lawyers: Ones to Watch in America.

Digital map of the United States illuminated by numerous bright lights

Unveiling the 2025 Best Lawyers Awards Canada: Celebrating Legal Excellence


by Jennifer Verta

Presenting the 19th edition of The Best Lawyers in Canada and the 4th edition of Best Lawyers: Ones to Watch in Canada.

Digital map of Canadathis on illuminated by numerous bright lights

Legal Distinction on Display: 15th Edition of The Best Lawyers in France™


by Best Lawyers

The industry’s best lawyers and firms working in France are revealed in the newly released, comprehensive the 15th Edition of The Best Lawyers in France™.

French flag in front of country's outline

Announcing the 13th Edition of Best Lawyers Rankings in the United Kingdom


by Best Lawyers

Best Lawyers is proud to announce the newest edition of legal rankings in the United Kingdom, marking the 13th consecutive edition of awards in the country.

British flag in front of country's outline

Announcing the 16th Edition of the Best Lawyers in Germany Rankings


by Best Lawyers

Best Lawyers announces the 16th edition of The Best Lawyers in Germany™, featuring a unique set of rankings that highlights Germany's top legal talent.

German flag in front of country's outline

Prop 36 California 2024: California’s Path to Stricter Sentencing and Criminal Justice Reform


by Jennifer Verta

Explore how Prop 36 could shape California's sentencing laws and justice reform.

Illustrated Hands Breaking Chains Against a Bright Red Background

Celebrating Excellence in Law: 11th Edition of Best Lawyers in Italy™


by Best Lawyers

Best Lawyers announces the 11th edition of The Best Lawyers in Italy™, which features an elite list of awards showcasing Italy's current legal talent.

Italian flag in front of country's outline

Combating Nuclear Verdicts: Empirically Supported Strategies to Deflate the Effects of Anchoring Bias


by Sloan L. Abernathy

Sometimes a verdict can be the difference between amicability and nuclear level developments. But what is anchoring bias and how can strategy combat this?

Lawyer speaking in courtroom with crowd and judge in the foreground

Things to Do Before a Car Accident Happens to You


by Ellie Shaffer

In a car accident, certain things are beyond the point of no return, while some are well within an individual's control. Here's how to stay legally prepared.

Car dashcam recording street ahead

The Push and Pitfalls of New York’s Attempt to Expand Wrongful Death Recovery


by Elizabeth M. Midgley and V. Christopher Potenza

The New York State Legislature recently went about updating certain wrongful death provisions and how they can be carried out in the future. Here's the latest.

Red tape blocking off a section of street

Tampa Appeals Court ‘Sends Clear Message,” Ensuring School Tax Referendum Stays on Ballot


by Gregory Sirico

Hillsborough County's tax referendum is back on the 2024 ballot, promising $177 million for schools and empowering residents to decide the future of education.

Graduation cap in air surrounded by pencils and money

Find the Best Lawyers for Your Needs


by Jennifer Verta

Discover how Best Lawyers simplifies the attorney search process.

A focused woman with dark hair wearing a green top and beige blazer, working on a tablet in a dimly

Key Developments and Trends in U.S. Commercial Litigation


by Justin Smulison

Whether it's multibillion-dollar water cleanliness verdicts or college athletes vying for the right to compensation, the state of litigation remains strong.

Basketball sits in front of stacks of money

Is Premises Liability the Same as Negligence?


by Jeremy Wilson and Taylor Rodney Marks

In today's age, we are always on the move, often inhabiting spaces we don't own. But what happens when someone else's property injures you or someone you know?

A pair of silhouetted legs falling down a hole with yellow background

Woman on a Mission


by Rebecca Blackwell

Baker Botts partner and intellectual property chair Christa Brown-Sanford discusses how she juggles work, personal life, being a mentor and leadership duties.

Woman in green dress crossing her arms and posing for headshot

Best Lawyers Celebrates Women in the Law: Ninth Edition


by Alliccia Odeyemi

Released in both print and digital form, Best Lawyers Ninth Edition of Women in the Law features stories of inspiring leadership and timely legal issues.

Lawyer in green dress stands with hands on table and cityscape in background