Metaverse is a network of 3D virtual worlds. It allows people to freely interact, communicate and engage with each other without the concept of distance and time.
To enter the metaverse and buy things you need to have cryptocurrency. This helps in buying Non-Fungible Tokens or NFTs in the form of avatars, places, buildings, etc.
Among these, an important feature is a space where all this activity is built around. This is termed Metaverse Real Estate or plots or parcels of virtual land which cost a certain amount of cryptocurrency. This is proving to be a big source of investment for interested people and companies likewise.
What is Metaverse Real Estate?
Metaverse has many upcoming aspects to its emerging world. One of these aspects is definitely investing in the space that creates this whole digital area. Metaverse land can be elaborated as a plot of virtual real estate represented by a Non-Fungible Token. This land can be bought or sold with the help of cryptocurrency.
Metaverse Real Estate is the digitized land that provides people a virtual substitute for a physical location. They can use it to socialize, work, play games, advertise, and rent it out among many other things from anywhere in the world.
These are programmable spaces that are more than just digital images, It is a whole 3D experience. With the rise of Metaverse, digital real estate will grow as well.
After Mark Zuckerberg announced his entry into the Metaverse, there has been a Metaverse real Estate boom in the last quarter of the year 2021. It is expected to have a potentially high growth rate in the ongoing decade. According to a report from CNBC, Sales of real estate in Metaverse topped $500 million in 2021 and they can double in 2023.
Why should we buy properties, Real Estate in Metaverse:
Investing in properties in Metaverse has its benefits and risks. But the chances of making a fortune out of this are more than the liabilities it holds. Some of the key reasons why you should be getting a Metaverse property are as follows
Property Developers are depositing millions into the Metaverse
These companies fully intend on making spaces like virtual malls, office buildings, cinemas, gaming arenas, and other rentable areas. Like the virtual real estate developer Republic Realm created a record by purchasing a $4.3million piece of land in the Metaverse.
Big commercial companies and brands are enthusiastically investing in Metaverse real estate
There are some huge names that are not hesitant in putting money into this concept. For example, Nike, Adidas, and Gucci want to make sure they have digital stores in the malls or otherwise of Metaverse, indirectly increasing sales of their merchandise.
Metaverse land and space assets – Nothing New!
The new interface of Metaverse might be new but many people have been financing these virtual lands for a long time. For example Ailin Graef became a millionaire after investing in another digital space called Second Life like Metaverse. She spent two years on that platform to build virtual property holdings.
How can we buy Metaverse property/ land?
With the rising popularity of Metaverse, people are curious as to ways how to invest in this particular property aspect of this digital world. Figuring out ways to begin this new age of financing could be intimidating. Some of the ways how you can buy land in the Metaspace are as follows:
- Make use of the direct marketplace – Any metaverse platform which has properties for sale always has a marketplace where you can directly buy land. You can pay with the help of a Digital Cryptocurrency Wallet through blockchain. That platform usually contains the coordinates to that specific land, which would be displayed on the metaverse map, where the property is located relevant to nearby roads, popular sites, etc. Mostly asking prices for that land available would also be present in the marketplace.
- Metaverse real estate agent – This category of people is a little hard to find. There are a few people who can help an investor find ultimate metaverse spaces for their projects, similar to real-life real estate representatives. These agents are not licensed because currently there are no databases on these digital places where they can apply for licensing as Digital Space Property Agents.
- Third-party marketplace – These areas of Metaverse are still under development, but there are a few third-party marketplaces where you can buy Metaverse real estate. Open Sea and Non-Fungible.com are some popular ones. They allow you to view properties and parcels currently for sale. They also provide more than one metaverse accessible spot listed on their sites at any time. This helps you think and pick out the options you want to select from. Also, a basic piece of knowledge is that no two landmarks or plots are digital real estate is the same, so the pricing will always differ.
How much does Metaverse real estate cost?
Prices of real estate in the Metaverse are surging and they do not come cheap. According to researchers, the average price for a parcel of land through the four major platforms was up to $12,000 for six months time last year.
According to Forbes, The Sandbox, which is a gaming platform on Metaverse, is the largest virtual world in terms of transaction volumes, worth $350Million in 2021. Following suit, Decentraland, which is the second-largest virtual world gaming platform, is worth $100Million as of last year in terms of transactions.
Between November 2021 and January 2022, 8,000 lands per month were sold at an average transaction price of 3.5 Ethereum (ETH) which is a cryptocurrency, which is around $13,000. And by January 2022, the daily average price of Metaverse land transactions, exceeded 5 Ethereum(ETH).
Possibilities regarding Metaverse Land investment
Digital land plotting and land grabbing bring with them limitless possibilities. In this concept, the metaverse itself is providing users first-hand participation in a virtual world while benefitting them in real-world time.
The limitation of the geographical value of land seems to fade when you see potential virtual land having unique specifications and locations up for grabs. The following are some examples of properties that investors may develop interest in developing as their first venture in the world.
Digistores (Digital storefronts)
Major brands like Gucci, Adidas, and Nike plan to build walk-in stores where you can enter, and browse for pairs of shoes or merchandise. Click to purchase through your preferred payment method and have a new pair of virtually limited edition shoes
Even in today’s time people are financing virtual gaming left and right. This will continue to prove as a big bank for investment and the representatives with capitalizing on the rapidly growing market. There might not be only one gaming option but a provision to hop on any sub-level of gaming platform you prefer.
Celebrities like Zara Larrson, One World, and Snoop Dog recently performed their shows on Metaverse. Similarly, there might be more virtual reality concerts, cinemas to watch movies together, and theme parks under consideration. Many other activities would emerge once this technology develops and is fully operational.
These impossible ideas previously only observed as concepts in books and movies are no longer just fiction. It may contain unimaginable opportunities for us all leading to a digital world of new possibilities. Rising sales and piquing interest of crowds in this idea of automation might make it the future of technology.