Is metaverse the future of property development?

In brief, these are computer programmes that create virtual worlds – reproducing the real world or creating imaginary worlds – in which users exist in the form of avatars who can move around, interact and even develop commercial exchanges.

The worlds of video games, of course, but also music and fashion have already seized on it to revolutionise their businesses. Last December, for example, Meta organised a series of virtual reality concerts, while March saw the first ever “Metaverse Fashion Week”[1]. A study by McKinsey, a consultancy firm, has already identified more than 3 billion metaverses worldwide[2]. Like these sectors, which are often at the forefront of trends, the property sector could well benefit from the unprecedented prospects opened up by the metaverse. There is no shortage of examples.

Metaverse, a solution developer for developers?

When, for example, will virtual meetings be organised with customers as part of a “phygital” approach, where discussions take place in a virtual meeting room and contracts can perhaps be signed remotely? Some developers are already holding part of their job interviews in the heart of a virtual plot of land totally modelled on their image, a plot of land itself purchased in one of the metaverses currently available. Unlikely? Not particularly. Buying virtual land is one of the major developments in the metaverse. The aim is to enable brands or companies to create a monetised virtual experience for loyal customers or curious visitors.

Others are focusing on the construction of assets that are unattainable in reality but feasible in the metaverse. Imagine building a house on an island where it is impossible to bring the right equipment, or constructing a building by the sea on a fragile piece of land: in the metaverse, anything is possible, offering incredible testing grounds for a large ecosystem of players in the sector.

But the most interesting short-term proposition is undoubtedly the construction of full-scale homes to enable customers to imagine themselves living there, with no geographical bounds or time constraints. In Cannes, a number of 3D digital representations of iconic sites (including the Palais des Festivals) are being auctioned off this month, with the aim of promoting the heritage of the city with its famous Croisette promenade far beyond France’s borders.

The absence of a solid, clear legal framework

The metaverse is still in its infancy, but it is developing fast, even more so since the Covid-19 pandemic, which accelerated the take-up of digital tools. By 2022, major companies and venture capitalists had already invested more than $120 billion[3], a sum almost double that of 2021.

Does that mean we should all scramble on board? It is a case of less haste more caution, as a solid legal framework and easy access conditions are still needed to make the metaverse a “tangible” reality. How can you build up a portfolio of cryptocurrencies to invest in the metaverse without taking inordinate risks? What happens to a virtual site if the platform that hosts it disappears? Can relationships between avatars ever replace the strength of social relationships in the real world? As with any innovation of this importance, opinions differ. The fact remains, however, that the metaverse warrants attention and that the coming years will undoubtedly reveal its full potential.

Which metaverse option interests and inspires you the most?

[1] https://fr.fashionnetwork.com/news/Metaverse-fashion-week-la-mode-face-aux-flamboyants-habitants-de-decentraland,1391297.html

[2] https://www.larevuedudigital.com/les-investissements-dans-le-metavers-sont-deja-colossaux-selon-mckinsey/

[3] https://www.larevuedudigital.com/les-investissements-dans-le-metavers-sont-deja-colossaux-selon-mckinsey/