What Is Digital Real Estate And Should You Invest In It?

Physical real estate is historically a reliable investment, but when the industry struggles, you may wonder where else to invest your money. Today, many investors are trying digital real estate. While this may sound abstract and complicated, if you know anything about domain names, mobile apps and advertising, you know much more about investing in the digital world than you give yourself credit for.

Like any investment, investing in digital assets has its pros and cons. If you’re interested in owning a piece of property online, let’s explore how investing in the virtual world compares to investing offline in the real world.

What Is Digital Real Estate?

Digital real estate refers to any digital assets you own. A textbook example is a website. It's easy to see how this digital property takes up space in the digital universe. Other digital real estate includes non-fungible tokens (NFTs), mobile apps and digital billboards.

Simply put, when you invest in digital real estate, you’re investing in virtual assets in online environments, like the internet or the metaverse. Many investors are turning to digital real estate due to the state of the housing market and its volatility.

Like physical real estate, you can interact with digital real estate, including seeing it, accessing it, using it and even renting it out. But how you buy and sell digital real estate and make money from it will look different.