What is Digital Real Estate & Why is It So Expensive?

For most people, buying a piece of real estate is a significant accomplishment with profound emotions attached to the experience. Often, a home is the mark of a marriage, a step in the process of becoming a parent or a fresh start in a new location. In a time in which everything is going digital, it appears the real estate industry has not been over looked by digital creators worldwide.

Enter, digital real estate.

Welcome to the Metaverse.

In October, Facebook announced they would be changing their name to Meta in the upcoming months as it will, “bring the metaverse to life and help people connect, find communities and grow businesses."

But what is the Metaverse?

"The metaverse will feel like a hybrid of today’s online social experiences, sometimes expanded into three dimensions or projected into the physical world. It will let you share immersive experiences with other people even when you can’t be together — and do things together you couldn’t do in the physical world."

Essentially, it is comprised of the websites, communities, and experiences that all exist online, but will be increasingly more life like. Between digital coins, digital human interactions, digital spaces and games, the development of digital real estate was a natural evolution.

What is Digital Real Estate?

Within the Metaverse, there are a myriad of different worlds one can exist in. That being said, having a place of your own, be it a digital plot of land or a digital home, brings an element of novelty to the experience with a price tag to match.

Axie Infinity is a NFT game where users can purchase land that is ranked based upon its rarity. In February, 9 of the 220 total existing plots of land in the game were sold for 880 ETH which is equivalent to 1.5 million USD. On November 24th, a record sale of 550 ETH went underway for one plot of land, described by the game as "extremely rare", equivalent to 2.4 million USD.

Are you interested in purchasing digital real estate? How do you feel about our world and the Metaverse? When it comes to change we generally have two options - recognize it and lean in, or recognize it and be forced to lean in eventually. How will you choose to adopt these changes?