In recent years, assets such as NFTs and cryptocurrency have skyrocketed in popularity, with the potential to make (and sometimes lose) people large amounts of money. As digital markets evolve and grow, new investment opportunities continue to reveal themselves, some showing real signs of a promising future; one of which is digital real estate. In fact, some of the most famous celebs already have their own virtual properties!
So, what is digital real estate? Good question! And likely one that many people ask on a daily basis, especially as this ‘real’ estate is located in a virtual world. In this post, we’ll dive deep into the world of digital property to discover what it is and how you can use it to enhance your own brand.
What Is Digital Real Estate?
We’re all familiar with how real-life real estate works. An individual or business purchases property with the intent to use it or sell/rent for profit. Digital real estate works in precisely the same way. It just lacks bricks and mortar, which is where a lot of the confusion and lack of trust comes into play. In the metaverse, digital property is a virtual reflection of property in the real world and can be treated as such.
You can access the metaverse using a range of platforms, each with unique features and land with varying attributes. Some platforms offer a more realistic experience, which limits the variation to location and size, much like buying real land. However, some platforms offer a more gaming-focused experience and have a wide range of features to support it.
Despite being a digital environment, platforms have a limited number of plots or ‘parcels’ of land. This not only establishes exclusivity, scarcity and a competitive market, but it also helps to stabilize value. The world of digital real estate is still in its infancy and has plenty of time to grow. It really depends on how receptive broader audiences are to the metaverse and the willingness to invest in digital assets. However, if the interest and adoption of NFTs is anything to go by…
What Is Digital Real Estate Used For?
As we all know, digital real estate is really still in its infancy. Right now, the public is purchasing virtual property out of intrigue, hoping for future returns. However, it’s the business world where things are taking off. Businesses can use the most basic, small plot to create virtual billboards and advertising spaces which can be used to promote their own brand or sold to others for additional income. But, that’s just the tip of the iceberg.
Here are a few ways that businesses today can use virtual property to improve customer experience and engagement to support their business activities.
The fashion world is always at the forefront of culture and technology, and their presence in the virtual world reflects this perfectly. Much like the art scene, digital real estate provides the ideal platform to launch new ideas and products via virtual fashion shows. But this is where things get interesting. Fashion brands can use the metaverse to promote real-life products and also to sell digital assets. The former can be achieved with digital recreations and eCommerce integration, whereas the latter is a whole new category of its own.
After seeing the interest and scale of investment in the virtual world, brands are now creating designer digital assets for the metaverse. Meaning a user’s avatar can now be dressed head to toe in designer gear, such as a virtual Burberry bag. Of course, this will be an easier route for established and sought-after brands, but small brands can most definitely carve a lane for themselves in the virtual world.
It’ll come as no surprise to learn that the retail industry is already knee-deep in the virtual world and is exploring the possibilities it offers. Brands can use digital real estate to create retail properties to promote new products or simply market to a new audience. Virtual retail stores can be hosted on platforms such as Decentraland, Roblox, The Sandbox, and more. All with their own unique properties and features.
However, it’s eCommerce and digital wallet integration that offers the most exciting direction in the virtual retail space. This is because it allows consumers to purchase virtual assets on the spot rather than simply being a fun way to learn about new products or items. Combine this with the use of VR technology… people can pick up virtual products, examine their features, and use click-through processes to make a purchase immediately.
Another lane of retail that has the potential to be hugely profitable is the creation of large-scale retail properties, such as virtual shopping malls. By doing so, businesses or investors can rent retail spaces to brands, providing a regular and reliable income from the metaverse. Rather than relying on virtual product sales to bolster the company’s profits.
No, we’re not talking about a Zoom or Skype call with your colleagues. A virtual office can come in many forms and be used for a range of purposes. Businesses that purchase plots of land can and have used it to create a virtual version of their real-life office(s). For some, this is little more than a novelty. Whereas others see real potential in the metaverse and have created office spaces for staff and client meetings, daily work, events, and more.
Also, the ability to place artwork and even stream video content within a virtual property opens the door for conference calls and similar work activities to be a real possibility in the near future. Who knows, maybe your next job interview will be in a virtual office space.
NFT sales and investment have taken the world by storm. And to the surprise of many, it’s made individuals and brands a lot of money. Now imagine if there was a more exciting and engaging way to market NFTs. Well, that’s where virtual art galleries demonstrate their value. Virtual art galleries provide artists with a platform to promote and sell their artwork across several platforms. This engages not only art enthusiasts looking to get their hands on new works but also metaverse users who stumble upon a new property in their neighborhood.
Additionally, the use of NFTs provides artists with more ownership and return from their work, as well as the benefit of enhanced marketing opportunities. This extends to the creation of virtual galleries, as they do not have to rent the space or attempt to buy real property for themselves.
Keen to find out more?
We are partnered with The Metaverse Group who are the first vertically integrated Real Estate company focused on the metaverse economy in the world. Our partnership aims to build one-of-a-kind virtual reality experiences that communicate a brand narrative through interactive, immersive virtual experiences. The goal is to provide fashion and art retailers with a frictionless, guided process for establishing a retail store in the Metaverse.