The Commercial Real Estate Industry and Virtual Reality

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The U.S. sales of virtual reality (VR) headsets and augmented reality (AR) glass have fallen nearly 40% in 2023, a 38% difference from the 2% decrease in sales in 2022. What does this mean for the real estate industry? 

Virtual reality within the commercial real estate industry  has grown in popularity over the past couple of years. The primary use for VR and AR is showcasing an available property to potential buyers with a virtual tour. Additionally, companies have been able to purchase virtual plots of land to build in the Metaverse.  

Some companies that own land in the Metaverse are Adidas, Nike, Ubisoft, Warner Music, Gucci and more. Since purchasing their virtual real estate and creating retail stores and games, these companies have seen significant profits from their visitors in the Metaverse.

Even though the sale of VR headsets and AR glasses has declined during the year 2023, we still see that most homes own at least 1 of these already and are less inclined to purchase a new set because of the cost of their initial investment. The virtual real estate industry will continue to grow and see buyers as more homes have a virtual reality device to navigate these land spaces owned by major companies.

 

References

Essential Virtual Reality in real estate statistics in 2024 • zipdo. ZipDo. (2024, January 3). https://zipdo.co/statistics/virtual-reality-in-real-estate/#:~:text=During%202019%2D2023%2C%20the%20virtual,by%20up%20to%20two%20times

News, I. T. I. (2023, August 16). Metaverse virtual real estate market: A breakthrough innovation with new high-growth sectors in the markets. LinkedIn. https://www.linkedin.com/pulse/metaverse-virtual-real-estate-market-breakthrough/

Vanian, J. (2023, December 19). VR market keeps shrinking even as meta pours billions of dollars a quarter into Metaverse. CNBC. https://www.cnbc.com/2023/12/19/vr-market-shrinking-as-meta-pours-billions-of-dollars-into-metaverse.html

Ulanoff, L. (2023, December 19). Even the metaverse didn’t make you VR converts. you don’t love VR and that’s a huge problem for Meta and virtual reality. TechRadar. https://www.techradar.com/computing/virtual-reality-augmented-reality/even-the-metaverse-didnt-make-you-vr-converts-you-dont-love-vr-and-thats-a-huge-problem-for-meta-and-virtual-reality


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