Despite what many have heard about the Metaverse, it is still a relatively young concept on the Internet and in the digital world. It has most often been described as an amalgamation of virtual shared spaces, the Internet and new-age technologies – a premise that makes the Metaverse hold a lot of opportunities for different avenues. Yes, it carries room for possible risks, but given its strength and potential, the Metaverse could be well worth the peril for businesses, including investments and new endeavors.
The rise of the Metaverse can largely be attributed to two main factors. One is how online games and virtual interactions have grown, creating a space today where people are more open to interacting with others over the Internet in virtual environments. The second is the major push to digital media: That big tech companies like Facebook (now Meta), Microsoft, and Google have joined the fray, along with their iterations of virtually immersive equipment and software, AI and algorithms.
The Real Estate industry has also seen its fair share of technology and digital upheavals. Smart devices and solutions have helped seasoned realtors and young investors in how they function in real estate. Changes to how properties are acquired, how they get sold and change hands, determining other variables like ownership, lease and other significant aspects. And with more buyers turning to the Internet and digital technologies to start with their home search (around 44%), it is fair to say that the Metaverse will be integral for the Real Estate industry to adapt and evolve.
Web 3.0 and the Technologies Transforming the Real Estate Sector
Over the past many years, the real estate sector has seen major changes to the practices prevalent in the industry, most of which are due to how digital technologies have steadily grown into prominent use. Here are some examples that illustrate their impact on real estate and the market:
Virtual and Augmented Reality: The use of extended reality technologies, most prominently VR and AR, has transformed how people view properties in a very short period. Similar to exploring virtual spaces in a Metaverse for enterprises, VR enabled prospective buyers to experience other properties visually, from their own homes or from distant places. They could take virtual tours of the property. Moreover, AR applications started enabling buyers to view how the property and its surroundings will look in an immersive manner, allowing them to view the physical features and the relief in a more in-depth way.
Property Management:
New software powered by IoT solutions and several gadgets has made it a lot easier for landlords to be able to manage their properties at different times of the day – leaving them free to head out for their jobs, travel or in case they live afar. Depending on the tasks they are developed for, these property management tools or software can be automated to perform tasks like collecting rent, requesting maintenance, and renewing the lease. Additionally, it also allows landlords and property managers the ability to authorize house showings or private tours remotely without needing to be physically present to conduct the tour by themselves or collect the key after a usual session.
With the market for property management software expected to reach $5 billion by 2027 (Grand View Research), the impact of new digital technologies on real estate is quite visible in the industry and in the real estate market. It has made it easier for sellers, landlords, and property managers from across the world to navigate the markets, manage their properties, and make better decisions.
Opportunities for the Real Estate Sector in the Metaverse
The Metaverse and the technology powering Web 3.0 have evolved in the recent years. Today, it leads to advanced solutions for various use cases across other industries. Created using Metaverse development services, it can allow for a similar level of opportunities and potential for the real estate sector. For instance:
Virtual Staging in the Metaverse:
Similar to physical staging – used primarily to make properties appear more attractive for potential buyers, virtual staging in a Metaverse could make use of digital twin technology to make a replica of a seller’s property and then add new physical dimensions and features/décor to the house. Buyers can also transport their furniture and other elements virtually from inside their existing homes to see their new house’s appearance with similar settings.
Metaverse House Showings:
With the Metaverse enabling people to view any property in a virtual space at a remote location, the need for physical house showings would gradually decrease. It could even mean that a physical house showing could be more of a finalizing event than the first one while allowing buyers to explore three-dimensional replicas of one’s house in the Metaverse. Ultimately, this would save the time and effort one usually invests in hosting and attending house showings.
Virtual Property Ownership:
Although a relatively newer concept, virtual property ownership is one of the crowning features of what it would mean for the real estate sector to become a major part of the Metaverse as an industry. Similar to how people buy and sell physical real estate locations, users exploring the Metaverse would be equipped with the ability to buy and sell plots of land virtually. This could, in turn, lead to the creation of revenue streams that would benefit realtors, developers and even young investors in today’s digital age.
The Metaverse Market size is projected to grow from around $62 billion near the end of 2022 to around $427 billion by the end of 2027, with the online real estate marketplace already witnessing new active users by the millions every month.
The Metaverse would create new business models, opportunities, and quality-of-life improvements to various real estate operations. We have already seen how the real estate industry has warmly responded to new digital technologies. And adopting the Metaverse as it evolves will be a major and logical step for the real estate sector as it can significantly shape its future.
