Empirical Study on Retail Investor Motivations in Metaverse Digital Real Estate

This study explores the motivations of retail investors in Metaverse digital real estate, a rapidly evolving sector that fundamentally differs from traditional real estate investments. Using quantitative analysis and Principal Component Analysis (PCA), the research identifies key factors influencing...

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Main Authors: Fariz Helmi Husain Mohd., Razali Muhammad Najib, Jamaludin Ain Farhana, Zakaria Siti Radiaton Adawiyah, Yassin Azlina Mohd., Jasimin Tuti Haryati, Nazrin Akmal Hakimi, Hamid Muhammad Yusaimi
Format: Article
Language:English
Published: Sciendo 2025-06-01
Series:Real Estate Management and Valuation
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Online Access:https://doi.org/10.2478/remav-2025-0018
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Summary:This study explores the motivations of retail investors in Metaverse digital real estate, a rapidly evolving sector that fundamentally differs from traditional real estate investments. Using quantitative analysis and Principal Component Analysis (PCA), the research identifies key factors influencing investor behavior, including risk tolerance, technological literacy, and confidence in regulatory frameworks. The findings highlight the transformative role of advanced technologies such as AR, VR, and blockchain in shaping investment decisions, emphasizing their ability to enhance engagement, security, and monetization opportunities in virtual environments. Demographic trends reveal a dominance of younger, higher-income investors, driven by speculative growth opportunities and a preference for innovative, interactive platforms. Challenges such as security concerns, regulatory uncertainty, and the nascent nature of the digital ecosystem emerge as critical barriers to broader adoption. The study underscores the need for robust governance, enhanced digital trust, and adaptive investment strategies to unlock the full potential of the Metaverse real estate market. These insights offer a foundation for future research and policy-making, guiding stakeholders in navigating this dynamic digital frontier.
ISSN:2300-5289