Exploring the Role of NFTs in Shaping Virtual Real Estate Markets within the Metaverse

Abstract

With an emphasis on how Non-Fungible Tokens (NFTs) are changing ownership and economic relations in digital spaces, this study examines the revolutionary effects of NFTs on virtual real estate markets (VREMs) within the metaverse. The article examines the blockchain-based processes that support NFTs and demonstrates how useful they are for ensuring scarcity, facilitating smooth transactions for virtual properties, and prov- ing verifiable ownership. It looks into the commodification of digi- tal land, highlighting similarities and differences with markets for physical real estate, such as locational value, market dynamics, and legal frameworks. The study highlights issues including market volatility and ambiguous governance structures while ad- dressing economic implications like diversification opportunities and speculative investing patterns, drawing on current studies and case analyses. The results highlight NFTs’ dual function as economic assets and technical facilitators, transforming views of property and worth in the digital age. The study’s conclusion points out research gaps and suggests future lines of inquiry, notably in the socio economic, ethical, and regulatory aspects of VREMs.