Purchasing Real Estate That Isn’t Real (Sort of?)

We had a tough time coming up with a name for this article. At first, we thought about calling it something along the lines of “Buying Real Estate That You Can’t See,”—but that might’ve given you the wrong impression. Although people buy houses without ever physically seeing them in person, that isn’t what we are talking about here. 

This article is about buying virtual land inside of the metaverse. There’s an old saying that you should invest in real estate because they aren’t making any more of it, but now people are. 

If you think that is outlandish, it’s about to get even more so. There is a decentralized virtual space called Decentraland. People can buy and sell plots of land within it, and they know their investment is protected because Decentraland uses Ethereum blockchain technology (cryptocurrency). Another reason why we are discussing this is because of how potentially valuable this real estate has become. The Metaverse Group, a metaverse real estate company, purchased a plot for $2.43 million. 

Another important distinction is that that purchase was not an isolated event. More than $500 million was spent on virtual real estate last year. Decentraland is not the only virtual space in which you can invest either. When Facebook rebranded itself as Meta, it played a prominent role in enhancing the market connected to the metaverse. Meta is working to build its own virtual world.  

Should I Invest?

Real estate bubbles occur when there is a rapid increase in the market that is unsustainable. These typically occur when the demand for property significantly outweighs the supply—thus driving up cost. Bubbles eventually grow beyond their capacity and pop. Is virtual property immune to bubbles? No, and that is why it may pay to be cautious. 

The argument people make against buying virtual real estate is that although there is a demand for it and it possesses value, there is no guarantee that the space will exist in the future. Others point out that virtual space is the biggest thing since the advent of social media. It could be a space where you hang out with your friends, go to shows, and meet with colleagues. We are doing this already through platforms such as Google Meet and Zoom, but this would be the next evolution of meeting spaces. 

Auricchio Law Offices

Although Auricchio Law Offices hasn’t entered the virtual market yet, we follow all real estate trends because our clients deserve that from us. Contact us today to schedule a consultation about buying or selling commercial or residential properties (that aren’t in the metaverse).

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Auricchio Law Offices

Auricchio Law Offices in Chicago provides a complete range of real estate services. We facilitate residential and commercial real estate transactions, advise and represent condominium associations, and represent property owners in real estate litigation. Whatever your real estate issue, we will work diligently to achieve your goals in a timely and efficient manner.

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