Originally published June 2022.
How the metaverse may impact on the real world.
Sweat streaming down my face, I landed a punch straight into his midriff. The force of the blow sent him stumbling backwards. Now was the time to finish this. Reeling back my right arm, fist clenched tight, I swung forward, my full weight thrusting towards his face. An intense pain came next. Pulling off my virtual reality headset, I realised, blood dripping down my hand, that I had punched the Christmas tree.
December last year I took my first steps into the metaverse and it seems I’m not alone. Despite evident supply chain issues, the Meta (formerly Facebook) Oculus Quest 2 was one of the top-selling gifts of the holiday season.
There has been much written about the metaverse over the past few months. Much of it slipping into hyperbole. However, as real estate investors, we should be looking closely at anything that could influence the way we interact with the world around us.
What is the metaverse?
Definitions can vary, but the metaverse may be broadly described as an evolution of the internet, merging virtual and physical reality. It blurs the line between real life, augmented reality and online interaction in both a computer-generated environment and on virtual platforms.
As devices such as virtual headsets develop, the metaverse may gradually augment users’ day-to-day physical lives, developing into a self-sufficient economic environment where users may work, play, attend events, and buy goods and services.
Estimating the dynamic and timing of the metaverse evolution is difficult, but some suggest that it may mirror that of the internet, mobile communication and the digital economy, developing into a multi-billion sector over the coming decades.
For real estate investors, analysing the potential evolution of the metaverse is of strategic importance for long-term value preservation, risk management and possibly also provide some form of first mover advantage if new investment opportunities emerge.