The metaverse might not be a complete replacement for real estate but it will help meet the needs of customers in real estate and including hospitality and trading.

The value of buildings reflects many factors. The COVID-19 outbreak affected populations, income, and supply chains. People traveled less and spent more time at home because they had to work mainly online.

This may be one reason why real estate in the suburbs and provinces has risen in the past two years along with online and telecom usage. It also reflects new luxury values as people yearn for a break from the online world and a return to a simple offline life with more attention to interactions with people. Although people have to spend more time online, the quality of life in the real world is still important.

But the metaverse and Digital Twin concept could also be an opportunity to drive new business potential through aesthetics and entertainment that is seamless and virtually indistinguishable.

That might mean new forms of tourism such as going to distant places or a land of imagination through hotels or resorts where guests can experience natural attractions from their rooms or bedridden patients may be able to experience the sensation of bungee jumping, for example.

From this angle, the metaverse will play an interesting role in helping to enhance the tourism and hospitality industries.

But the metaverse and “intangibles” such as digital assets will shake up ideas and beliefs about the value of traditional real estate, both in terms of location and economic zones.

In the metaverse era each business can have the space it wants. Customers will be able to go anywhere in a fraction of a second. So an online place that people pass by or notice could also be a prime location or new economic region.

Businesses are buying land on various metaverse platforms. A JP Morgan report found that by 2021 the average price of a single digital plot of land doubled to $12,000 in just over six months.

It was reported that digital land sales on the Decentraland platform alone in November 2021 reached $2.43 million. That's more than double the sales of the previous five months combined (from $913,000 in original sales).

MetaMetric Solutions forecasts that digital real estate market capitalization will increase to $1 billion by 2022, with an annual growth rate of 31% in 2022–28.

The next challenge for landlords or business owners is how to get attention and beat competitor. When it’s easier for customers to switch brands, brand owners have to find a way to keep people's attention on their own online store. So it becomes a challenge and the metaverse will also be related to the commercial dimension.

Property developers will need to rethink their building concepts to meet the changing lifestyles and needs of people today and in the future, such as managing all outdoor errands in one location. This reflects a more versatile building project or comprehensive internet network coverage in the project area. This will become one of the criteria for selecting and valuing real estate in the future.

The strength of real estate in the real world lies in tangible physical assets. No matter how much the metaverse evolves, the quality of life in the physical world will remain the basis of people's lives. The question is how developers will choose to see and leverage the metaverse to grow their business and create a better society.

Implications for the future:

-Real estate companies may become key players in the metaverse as holders of assets and territories in both worlds and may play an important role in shaping the public's understanding of the metaverse world.

- Mixed-use projects will be the future of real estate industry because they can meet the diverse needs of consumers both as landmarks and tourist destinations with malls, hotels, office buildings, etc.

Mutual understanding and partnerships between the public and private sectors may be the key to upgrading national infrastructure to support the metaverse, such as 6G internet networks or online crime prevention.

Reference: https://bit.ly/3vaVzIn, https://bit.ly/3LjD9Lh, https://bit.ly/3vcCHJa

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