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Everything You Need to Know About Digital Real Estate

May 13, 2022
Flowcode Team

Real estate isn't just about physical property — it's also about virtual land. Known as digital real estate, this type of property includes websites, domain names, URLs, and even digital plots of land.

If you have ever purchased a domain name, you are already familiar with digital property, but you might not know what it entails or how you can make money from it. With digital real estate in high demand, now is the time to get on board with the trend and learn how you can access more of it.

Digital Real Estate

What Is digital real estate?

Digital real estate is a term used to describe the process of buying and selling digital assets like domain names, URLs, and other digital property. The concept is similar to real estate investing, where people buy properties for the purpose of renting them out or reselling them for profit.

Digital property has been around for years, but only recently has it become highly desirable for investors. This is because of the growing popularity of online businesses, which rely on having domain names and URLs to market their products or services — which is especially true considering the pandemic and the growing shift to online work, entertainment, and entrepreneurial endeavors.

Who owns digital real estate?

Also known as virtual property, digital real estate encompasses not only domain names and other more well-known digital assets — which are widely available for anyone to own affordably — but also digital “landlords” like Facebook and YouTube, where people pay for ads to increase their audience base, leads, and sales.

Nowadays, there are even companies that will let you purchase virtual land to invest in the metaverse , a type of 3D simulated reality. In the metaverse, you’ll see digital assets known as NFTs, or non-fungible tokens , that are stored on a blockchain, or digital ledger, and can be traded or sold using cryptocurrency such as Etherium.

Popular virtual worlds with parcels available for purchase include The Sandbox and Decentraland , where you can find virtual shops, plots of digital land, and other digital experiences. In one well-known instance of digital property, someone paid $450,000 to be neighbors with Snoop Dogg in the metaverse, where the artist is replicating his California mansion.

With people living in both physical and digital worlds more and more, QR codes have become a bridge to enter digital universes. With digital real estate often being promoted in the “real world”, scanning a QR code allows for an instant connection to the product being sold.

Can you make money with digital real estate?

You can make money from digital property in the same way that you can make money from traditional real estate. The only difference is that instead of owning land and buildings, you own virtual spaces.

Digital assets have low barriers to entry because anyone with an internet connection can buy or sell them without having access to financial institutions like banks or other financial service providers. With many digital assets available at low prices, it’s possible to get started quickly and turn a profit.

One strategy used by domainers is to purchase domains that have the potential for high resale value and then “flip” the domain; GoDaddy has some useful tips for domain flipping to help you get started. And, in just a few years time, we'll most likely see massive increases of buying and flipping of digital land in the metaverse and other virtual worlds.

Digital Real Estate

Using NFTs for digital real estate

If you’re looking to capitalize on real estate buying and selling, it’s important to understand NFTs and how they apply in the era of Web 3.0. It’s likely that we’ll see an increase in usage of NFTs for a variety of purposes in real estate, from transfers of deeds and execution of contracts to tracking the value of property over time.

As such, QR codes offer a quick, simple way to connect offline audiences with online experiences, including digital real estate listings and assets. If you’re curious how Flowcode’s QR codes can help you capitalize on digital property trends, feel free to reach out for guidance or get started with creating your own Flowcode for free.

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