How will Pokémon Go affect the real estate market?

So, this Pokémon Go thing has really taken off. When something impacts the world like this, whether it’s a game, a politician, or a natural disaster, it’s difficult for us not to think about how it will affect the real estate market.

Naturally, we had to download Pokémon Go to see what the game entailed. We’re assuming you’ve played it or at least heard of it, so we’ll just give a quick rundown of the gameplay. You play as a Pokémon trainer that travels around trying to “catch ‘em all” and win battles, all while finding new items that aid you in your efforts.

Positive and negative headlines have been popping up mostly due to the game’s augmented reality (AR) feature. The game shows a very basic aerial of your area’s street grid, and certain landmarks, buildings, and zones have been designated as either gyms or stops. At the gyms, trainers can battle; at stops, you can find items. The catch is, you need to physically go to these locations in order to engage with them. If you happen to run into a wild Pokémon along the way, you can enter AR view and see the Pokémon through your phone’s camera.

Facing east. That two lane street with the median (running north-south) is Spadina.

It seems like half the population is commending the physical aspect of the game, which encourages people to get outside and see different parts of their city. The other half see it as a nuisance and inconvenience since they need to navigate through a sea of downturned heads every time they traverse the city streets. There have also been stories of people trespassing on and damaging private property, walking into traffic, and hurting themselves by simply not watching where they are going.  

Love it or hate it, it’s here and this is only the beginning. Pokémon Go is still glitchy and buggy and it’s won over the hearts of millions. Wait until the game is polished and running smoothly.

So, we downloaded Pokémon Go. The first thing we noticed was that a nearby public courtyard surrounded by condos was a stop where trainers could collect items. Instantly, we realized that Pokémon Go may find its way into real estate listings.

If you’re a large enough fan of the game and you’re trying to decide between two condo units in the same area, but one is closer to a Pokémon gym or stop, would it affect your decision? A bigger (and crazier) question is, would you pay more?

At this moment in time, we don’t see how anyone would ever pay more for a home because it offers more value for their Pokémon Go campaign, but it makes us think about how virtual reality will end up affecting the real estate market.

Catching a wild Zubat on the balcony

Like we said, this is only the beginning. Other games are going to come out that involve augmented and virtual reality, and these games or programs will be tied to our physical locations. As soon as something has an effect on location, it can affect property values.

Let’s use an example of something that may be possible in the not-so-distant future. Imagine if there was an app that allowed museums to exhibit famous art in virtual galleries in preset locations. Would a famous virtual gallery at the base of your condo make it more valuable than a nearby unit without this feature?

Perhaps Pokémon Go will have a negative impact on the market, driving prices down. Maybe that condo courtyard that we mentioned above will become overrun with players and owners in the surrounding buildings will have a difficult time selling their units because of the amount of foot traffic. Like we said, there are people who don’t like the game and its effects on society, so these are the kinds of people that would probably we dissuaded by a property’s involvement with the game.

So, do you think Pokémon Go or the future of augmented and virtual reality will affect the real estate market?