What’s happening with real estate NFTs, metaverse and blockchain technology?
In 2022, we have begun to see a continued surge of businesses that are supporting crypto-sales or accept mix-and-match currencies, according to Sotheby’s Luxury Outlook report. In 2021 and 2022 we will see a huge demand in digital assets especially within the luxury market, both buyers and sellers have shown interest and demand has grown across multiple markets.
The question is no longer asking how digital real estate transactions are taking place, it’s understanding demand and acceleration of technology and recognizing how quickly changes are already happening. With endless opportunities for wealth creation and lifestyle integrations across multiple industries it’s no surprise that real estate is heading toward blockchain adoption.
In November 2021, we saw a cryptocurrency company pay $700 million to rename LA’s iconic Staple Center. “In the next few years, people will look back at this moment when crypto crossed the chasm in the mainstream” stated Kris Marszalek of Crypto.com according to The Hill. Rebranding is really just the beginning of the shift toward digital currency and continued growth. More and more businesses are accepting it, and more and more individuals are investing in it.
Last May in Miami a record breaking $22.5 million dollar sale made headlines via Manson Global as it was the most expensive recorded residential real estate transaction made with crypto in the US. The wealth creation within the crypto-markets has spilled over into several industries and continues to gain further endorsements from wealthy individuals who purchased NFTs and transact with digital currencies. In early 2022 Justin Bieber purchased a Bored Ape NFT for $1.3M, which was originally worth 20K. Now, officially a member of the Bored Ape Yacht Club, this signifies the growing popularity of NFTs as a new culture that will continue to build trust and hype around NFTs. Sandbox, a community-driven platform where creators can monetize assets, recently partnered with Snoop Dogg which accelerated NFT collectors to pay $450,000 for land next to Snoop Dogg’s NFT House. The industry has mobilized very quickly gaining trust from influencers in art, music, fashion, and film.
As the transition to home ownership as NFTs has begun, pioneering real estate agents have begun to stake their own claims and build for the foreseeable future. Sotheby’s Luxury Reports “given the immense global interest in crypto, there’s no doubt in my mind that it will become increasingly popular as ‘consideration’ for real estate.” SERHANT, a New York based firm led by Ryan Serhant is one of the first to develop and launch a virtual world in preparation for mass adoption. Furthermore his firm predicts that “50% of all real estate transactions will be done in crypto currencies in the near future” according to Decrypt article.
Blockchain analytics company Chainalyis recorded that in 2021 overall people spend $44 billion buying and selling NFTs according to Fortune. Who recently reported on a home in Florida that has successfully been sold as an NFT with over 7,000 bids. The rapid adoption of blockchain technology could potential and in some cases already begin to streamline the process of buying and selling homes. In this instance the NFT (a digital token) would record that person’s ownership of a limited liability company on an online leger. Therefore the owner’s LLC’s only asset is the house. The demand and visibility for this particular NFT home was unprecedented, and further reveals the growing demand for NFTs and real estate integrations.
As the metaverse expands, so do the possibilities for digital land ownership and digital transactions. Digital land ownership and integration of physical and digital assets will continue to find innovative solutions to buying and selling real estate in the future. Leave a comment below to share your thoughts.
