Advances in technology provides many conveniences for humans. Not only as a tool but can be a business opportunity for the future. Recently, the metaverse development makes humans change the concept of property in general.
In the metaverse world, humans can interact, work, have fun, and even own their own land or property. So does having properties in this metaverse have any benefit? The answer of course is yes.
The answer was answered by the Managing Director of Occupier Services Colliers Asia, Abhishek Bajpai.
“The metaverse will rise. That’s almost certain. The exact direction that will be taken has not yet been determined, but the possibility is massive,” said Bajpai in a written statement, Tuesday (19/04/2022).
With names like The Sandbox and SuperWorld, virtual communities are calling for investors, developers, residents, and an entire generation of digital natives who grew up inhabiting avatar-filled online games like Minecraft and Roblox. Despite the nascent concept, Metaverse is on the cusp of fomenting a property revolution with virtual land sales exceeding $500 million in 2021 and expected to double by 2022.
Many businesses also want to understand what the metaverse is for their operations and how it can be put to good use. The reason is, that virtual properties are relatively easy to create, modify, and update.
Hannah Jeong, Head of Valuation & Advisory Services at Colliers Asia, said developers, landlords and residents can explore the metaverse to complement their real-world offerings.
“The existence of the Metaverse is of great benefit to the property market, as it can offer potential buyers a wide range of choices and assist them in making informed decisions,” explains Jeong.
Privacy and cybersecurity risks also exist in the metaverse, which, for now, is not yet regulated. The fact that cryptocurrencies are widely used in transactions in the metaverse causes volatility issues and sustainability issues given the large computing power and energy consumption they require.
However, Jeong noted that regulators and private entities in Asia Pacific and elsewhere have made efforts to address these challenges.
In the coming years, the combination of technological advances in information technology such as 5G, VR, artificial intelligence, and blockchain, as well as the rise of the digital native generation, will propel the metaverse into a major property market. This means that every player in the property industry must formulate a metaverse strategy.
“There are a lot of opportunities in the metaverse. That’s why we’re focused on building the capabilities of our technical advisors so that we can explain to clients the advantages and challenges, and guide them through the process should they decide to take the risk,” said Bajpai.
While the metaverse will never replace real-world assets, Colliers sees it as increasingly capable of developing synergies with the physical world and supporting new solutions and business models that appeal to owners, residents, and investors.
“Metaverse will drive the property market in the future and bring more creativity to the world – especially as more potential risks are reduced and we have a more stable platform,” concluded Jeong.