The Future of PropTech: metaverse, VR/AR, and Digital Real Estate

VR/AR in Real Estate Today

Virtual Reality (VR) enables virtual visits to properties. Applications: (1) Virtual Tours — a buyer/tenant from another country “walks” through an apartment wearing a VR headset; (2) Virtual Staging — demonstration of unconstructed space furnished; (3) Construction — virtual walkthroughs of buildings not yet launched, based on the BIM model.

Business Effect: Sotheby's International Realty: buyers using VR tours are 40% more likely to make an offer without a physical viewing.

AR (Augmented Reality) allows “overlaying” digital information onto the real world. An application for buyers: point your phone at a building → see data about residents, transaction prices, characteristics.

Digital Real Estate in the Metaverse

Metaverses (Decentraland, The Sandbox, Horizon Worlds) — digital worlds where you can buy “land plots” in the form of NFTs.

Hype of 2021–2022: Republic Realm paid $4.3 million for a land plot in Decentraland. Now — the market has shrunk significantly.

Real Applications: virtual showrooms (showing apartments in the metaverse); virtual offices (corporate spaces in the metaverse); digital twins of real properties.

City Digital Twin

Dubai Virtual Twin — the government of Dubai is creating a full digital twin of the city. Applications: simulation of consequences of floods; optimization of transportation flows; planning of new construction; emergency management.

Arup, Siemens, Bentley Systems — key players in City Digital Twin.

Practical Assignment

A developer is planning a new residential complex (200 apartments, completion in 2 years). Develop a PropTech sales strategy: (1) How to use VR for sales at the foundation stage? (2) How to use data for pricing? (3) Will you consider tokenization as a tool for attracting investments? (4) Which PropTech platform for management after completion?