60% of Gen Z in the UK are more likely to buy digital land than physical property due to its affordability
With the cost of physical real estate at an all time high, Gen Zers in the UK are eyeing up the metaverse as their chance to get onto the property ladder, with over half (60%) revealing they are more likely to buy digital land due to it being more affordable.
A better ROI?
In fact, over half (51%) think digital real estate will provide a more significant return on investment than brick and mortar properties in five years’ time, according to new research conducted by metaverse platform Virtua, based on a survey of 2,000 British consumers.
Owning a piece of virtual land in the metaverse will allow users to build a customisable space to socialise, display their digital items and NFTs and generally interact with others and their surroundings through a 3D avatar. Landowners will also be able to build unique structures, and later landscape and personalise their environment, as well as play exclusive metaverse games.
Diving into digital
The data reveals that the younger generations with an opinion are the most eager to purchase digital property, with nearly four in 10 (39%) Gen Zers, and 42% of millennials, stating they feel ready to enter the metaverse, compared to just 7% of those over the age of 55.
The ability to be who you want to be, whether your real self or a modified version, is another reason people are excited about spending time in the metaverse. Nearly a third (32%) of all those surveyed believe it will provide an opportunity to reinvent themselves, while nearly half (46%) of Gen Zers think it will allow them to be their true, authentic selves.
Jawad Ashraf, CEO and Co-Founder of Virtua, said: “The metaverse presents a unique opportunity for future generations in digital real estate. Over the last couple of years the interest in owning digital land has increased considerably and just like property in the physical space, owning real estate in the metaverse is all about location, location, location.
“With high-profile celebrities building their own residences in the metaverse, fans are clamoring to ‘live’ near them, and our data shows that 47% of Gen Zers think purchasing digital land would enable them to live closer to, or within, like-minded communities.”
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The data also revealed that 78% of Gen Z, and 68% of millennials, feel they would have more control over their digital items in the metaverse than their physical ones, suggesting a confidence in decentralised blockchain technology may also contribute to their willingness to purchase digital land.
The new ‘dream home’
Over half (51%) of Gen Z believe buying digital items in the metaverse could be a good investment, showing that the younger generation is looking toward virtual reality as a potential channel through which to make profit.
Dr Janice Denegri-Knott, Professor in Consumer Culture & Behavior at Bournemouth University said: “Digital real estate provides an opportunity to experience the process of acquiring, developing and living in a beautiful and bespoke space, albeit in the virtual world. A big selling point of the metaverse is the ability to shape our self-ideals. Digital experiences like these allow for the actualization of these ideals by providing a wider range of opportunities to explore our dreams and ambitions – in this case a chance to create a “dream home”.”
This data follows research conducted by Virtua that looked at owning digital items in the metaverse. The study found that the majority (70%) of Brits would rather own digital items than stream them, while 34% of all respondents think buying digital items would be a good investment.