I thought I would post this here since this is becoming a reality now. Curious how RE firms are going to approach this and develop a strategy for it. Initially, this will just be the mavericks and the big firms but curious how this plays out over the long haul with more local RE firms.

Personally, I'll never be engaged with this as I think it will just further degrade society, but we are going to have two entirely different worlds where people live in short order. IOW, people are going to have second or third homes in the Metaverse vs or in addition to the coast or the mountains going forward.

https://www.wsj.com/articles/metaverse-real-estate-piles-up-record-sales-in-sandbox-and-other-virtual-realms-11638268380

SoupNazi2001 said:

---

What? People pay for this.

---

Yep, it's actually not the first go at it either. Maybe a decade ago(?) there was a push to do this on the internet with a couple of different online universes getting built. People bought online RE thinking it was the next big thing only to watch it fizzle out and fail.

This time is going to stick though since it's virtual and society is vastly different even from a decade ago. I can't see myself participating in this at my ripe old age of 48, but it's going to be a reality.

SoupNazi2001 said:

---

What? People pay for this.

---

What people pay for website domains and online advertising?

This made me think of Second Life

johnrth said:

---

Am I that out of touch with technology nowadays but isn't this just basically make believe game stuff?

---

Perception is reality.

Facebook (aka metaverse; aka Zuckerberg) is putting his entire empire into this. He's going all-in as the next big thing. He's not wrong on the concept although there will be a ton of wrong bets inside of it as this thing takes off.

agnerd said:

---

There is unlimited digital real estate. Supply and demand doesn't apply and it has no real value. This is entertainment spending, not real estate spending and shouldn't be treated as real estate regardless of what Zuck says or thinks.

---

I'm 48 so I agree with you. However, these younger generations don't care or agree with us.

They want to live in VR world and if enough of them value digital RE then it will have value. Thus, perception is reality.

My guess is this will be a 1 step forward; 2 steps backward movement over the short to medium term, but I see it taking hold simply because younger people will make it happen.

TriAg2010 said:

---

YouBet said:

---

agnerd said:

---

There is unlimited digital real estate. Supply and demand doesn't apply and it has no real value. This is entertainment spending, not real estate spending and shouldn't be treated as real estate regardless of what Zuck says or thinks.

---

I'm 48 so I agree with you. However, these younger generations don't care or agree with us.

They want to live in VR world and if enough of them value digital RE then it will have value. Thus, perception is reality.

My guess is this will be a 1 step forward; 2 steps backward movement over the short to medium term, but I see it taking hold simply because younger people will make it happen.

---

The fundamental product of "virtual real estate" is basically like the in-app purchases for add-ons and customizations you see in the gaming world. There is probably money to be made for the same reason people make money selling Fortnite skins. Categorizing that as a form of "real estate" is spinning some supreme bull ****, undoubtedly crafted to associate these virtual spaces with the utility, scarcity, and value we place on real estate. This topic frankly doesn't belong here.

---

Well, we don't know that yet and I thought it would be interesting to hear if any actual RE people have thought about this. It's so bleeding edge it's probably too early to post it here but I was curious. We will find out in the next couple of years though if it was truly relevant or not.

JJxvi said:

---

Zuckerberg thinks he's gonna be James Halliday?

---

that was Jobs

People want to become The Sims......People are stupid

Where can I get a virtual blee jay?

Until then, I have no use for it

Maybe my second life shop will finally become profitable!

itsyourboypookie said:

---

Where can I get a virtual blee jay?

Until then, I have no use for it

---

Blee jay? go on

Came here to post basically OPs post but saw I was beat to it. I can't wait to see this crash and laugh at all the people that burned money on this

Buying pretend stuff with real money. It makes no sense to me.

I was giving my lender buddy **** about underwriting a virtual estate loan. What's the collateral?

Dumbs.