Digital Real Estate Investing

By PropertyClub Team
May 12th 2023
Digital real estate is an exciting new asset class that has seen a surge in popularity in 2022. Digital real estate investing allows you to earn money without some of the hassles of owning physical property. Here is a closer look at digital real estate and how it works.  

hash-markWhat Is Digital Real Estate?

Digital real estate refers to any number of digital assets that can be bought or sold online. Common examples of digital real estate include websites, online stores, blogs, eCommerce brands, apps, NFTs, metaverse land, and other similar web assets that generate traffic. 

Digital real estate investing is an innovative technique that allows investors to earn passive income or flip assets without ever having to deal with the hassles of managing and maintaining physical real estate. But it can also be risky because it isn’t always clear if the digital asset is truly valuable. In particular, the value of NFTs and digital real estate in the metaverse is highly volatile. 

hash-markHow Does Digital Real Estate Work?

When you buy a domain, you have a right to control the content and development of any website built-on top. You also have the right to collect the revenue generated from the content or products sold on the same site. The same is true if you delve into buying virtual land in the Metaverse. When you buy the land, you have a right to utilize it and monetize it in any way you see fit, creating opportunities for new business ventures and opportunities.  

hash-markHow Can Digital Real Estate Be Used?

There are a variety of ways digital real estate can be used. If you opt for the more traditional method, you can purchase a domain, build an online store, create a blog, or sell ad space. If you buy a mobile app, you could sell downloads or offer upgrades that users can choose to purchase. 

When buying land in the Metaverse, you can monetize your virtual property in many ways. You can simply hold onto it in the hopes that it will appreciate so that you can flip it for a higher price. You can also rent it out to other Metaverse users or sell ad space on a digital billboard. There are many ways to leverage digital real estate, so you’ll have to find a particular strategy that makes sense for your goals. 

hash-markIs Digital Real Estate Valuable?

Yes, digital real estate can be very valuable, but there are plenty of worthless assets out there as well. Think of how valuable domains like Google or Amazon are and how much traffic and revenue they bring in daily. Yet that doesn’t mean every piece of digital real estate will have the same earning potential, and for every million-dollar NFT and top-performing website, there are thousands of duds.

The same is true with virtual land in the Metaverse. The market caps for land in popular Metaverse platforms like Decentraland and the Sandbox are both over $4 billion. But it’s still unclear whether this land will continue to appreciate or be disregarded as a passing fad.

hash-markHow to Buy Digital Real Estate 

  1. Choose Your Investing Strategy
  2. Research the Market
  3. Acquire the Necessary Tools
  4. Make a Purchase

1. Choose Your Investing Strategy

The first step is to decide what strategy you will adopt. Are you looking to flip domains, purchase apps, or become a Metaverse landlord? The method you use will determine what tools you need to make a purchase. 

2. Research the Market

Next, you’ll want to research the market you’re interested in. Determine what makes a good opportunity and create a strategy for monetizing the investment. Just like regular real estate investing, you’ll have to do your due diligence and have a clear exit strategy to ensure you will make your money back. 

3. Acquire the Necessary Tools

During the research phase, you’ll also want to find out what kind of tools you’ll need to purchase. You’ll need a hosting service if you want to buy domains. If you’re looking to buy land in the Metaverse, you’ll need a crypto wallet stocked with enough coins in a compatible currency. For instance, Decentraland requires investors to use its native coin, MANA, and most use the crypto wallet MetaMask to facilitate the purchase. 

4. Make a Purchase

Finally, once you’ve done the research and acquired the necessary tools, the final step is to make a purchase. You can simply buy domains through your hosting company. With land in the Metaverse, you can search for plots through whichever platform you’re interested in or use an NFT marketplace like Then once you think you’ve found a suitable opportunity, simply click purchase, and you’ll be the proud new owner of a digital real estate asset. 

hash-markHow Is The Metaverse Related to Digital Real Estate?

The Metaverse is part of what is commonly referred to as Web3. It’s an online universe that utilizes AR, VR, and blockchain technology to create an alternative world where users can interreact, play games, swap NFTs, and perform various other functions. Purchasing land and other assets in the Metaverse is the newest iteration of digital real estate investing.

While the term digital real estate can be applied to a wide variety of online assets, much of the conversation surrounding this investing technique is focused on these new developments in the Metaverse. While it’s still an emerging technology and land values are relatively volatile, the Metaverse presents exciting new opportunities for those who want to own digital real estate.

hash-markDigital Real Estate Bottom Line 

Digital real estate investing offers people various new types of digital property to invest in. In the same way you can buy a plot of land and either wait for it to appreciate or develop it with new construction, you can do the same with a domain or NFT. The internet is the new frontier, and purchasing digital real estate can generate consistent income without all the physical labor required to manage real estate in the real world. While it offers the potential for exponential returns, it can also lose value just as quickly. So be sure to do your research and understand the risks before investing.