Investment in Virtual Real Estate in the Metaverse, A Myth or Reality: Views of Investors in South Africa

Omokolade Akinsomi, Daramola Olapade, Kamogelo Mohlala, Deigo de Saldnha and Adam Trope

AfRES from African Real Estate Society (AfRES)

Abstract: The advancement in digital technologies such as cryptography, blockchain, artificial intelligence (AI), virtual and augmented realities has blurred the difference between reality and the digital world. Through the Metaverse, a 3D virtual environment that serves as a hub for all types of business, education, and leisure experiences; investment activities akin to those in real world are being carried out with the help of augmented and virtual reality services. People now invest in virtual real estate and other digital assets using Non-Fungible Token (NFT). It is however unclear how investors in developing economies such as South Africa view such an investment option. This paper examines the perception of investors in South Africa (SA) on investing in virtual real estate in the Metaverse. This study employs a mixed method approach involving questionnaire administration and interview. Questionnaire were administered on 20 selected investors in South Africa (SA). This was followed up by interview. The results were analysed using descriptive approach. The findings reveal that is a high awareness level (85%) among the selected SA investors on investment in virtual real estate, the willingness to invest in it is however lower (65%) and only 15% of the investors have investment in virtual real estate. The low entry rate of investment in virtual real estate in the Metaverse amidst a high level of willingness to invest shows that there are certain factors preventing investments in it. The study recommends that a robust governance should be put in place to allay the security concern and high volatility expressed by investors This paper is among the few studies that have considered investment in the Metaverse from a real estate perspective.

Keywords: cryptography; Digitalisation; Real Estate Technology; Virtual Real Estate (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2024-01-01
References: Add references at CitEc
Citations:

Downloads: (external link)
https://afres.architexturez.net/doc/oai-afres-id-afres2024-020 (text/html)
https://architexturez.net/system/files/afres2024-20_0.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:afr:wpaper:afres2024-020

Access Statistics for this paper

More papers in AfRES from African Real Estate Society (AfRES) Contact information at EDIRC.
Bibliographic data for series maintained by Architexturez Imprints ().