Digital real estate in the metaverse as an emerging asset class; Omar Abdallah, leader of Rose Law Group’s Web 3.0 practice, highlights why ‘location, location, location’ still applies

By Blockchain Research Lab

This report highlights digital real estate (or virtual land) in the metaverse as an emerging asset class. It examines the price drivers of digital real estate and whether it represents a new and unique asset class. The analysis shows that, similarly to traditional real estate markets, neighborhood effects play a crucial role in the pricing of virtual land. Furthermore, the price of digital real estate has no significant correlation with those of other asset classes. Thus, it can be concluded that digital real estate is an emerging asset class in its own right and could potentially be used to diversify or optimize risk-adjusted portfolios.

“Even though users can teleport to their destinations in some metaverses, this report finds that the  location of digital land still plays a major role in its desirability and value. This suggests that metaverse land investors would be prudent to pay attention to which brands, companies, celebrities or developments are being established in their metaverse of choice, and where. It seems like the old adage of “location, location, location” applies in the metaverse too.”

Omar Abdallah, Rose Law Group Web3 Attorney