Digital real estate in the form of digital parcels of land in virtual worlds is emerging as a new asset class and billion-dollar market. Similarly, to traditional, physical real estate, virtual land owners can build on it, use it, sell it or rent it out.
Like many new markets and innovations, digital real estate may be a difficult concept for newcomers to grasp. What is the point of owning land that I cannot physically walk on? Why should some piece of land be worth more than another? And can’t you just copy that land?
Our scientific report „LAND Ho! Digital Real Estate in the Metaverse as an Emerging Asset Class” sheds light on such questions, explores the motivation to own virtual land and examines its pricing.
Some highlights of the report:
- Digital real estate is a billion-dollar market: On the Ethereum blockchain alone, digital parcels of LAND have already reached a trading volume of over $1.2 billion.
- LAND prices do not correlate with other assets: While we find significant correlations among the prices of all other asset classes we investigated, the price of LAND does not correlate with any of them
- Location is a major driver of LAND pricing: Data on seventeen brand and other high-profile owners of LAND in The Sandbox show that the price of a piece of LAND significantly depends on its distance to these celebrity parcels.
- Digital real estate or virtual land is a high-performing asset: Compared to selected other assets or asset classes, such as Bitcoin, Ether, stocks, gold, traditional real estate or bonds, LAND performed excellently.
Download this free report HERE to learn more about digital real estate and virtual land.
If you have any questions, please feel free to contact us! We welcome any comments or questions.