Virtual real estate is the new market frontier, thanks to the Metaverse. So agents and brokers need to know what this means for the industry and how to buy land in the metaverse. Everything seems to exist virtually these days. Virtual art, virtual events, virtual marketing. But what about virtual real estate – does such a thing exist, and if so, can it be invested in?
Metaverse real estate is an online platform where people can come together to play games, post products, offer services and organize events. Companies usually own this virtual property. And like any other type of real estate, they can be bought, sold, purchased, and rented. Since the Metaverse is still new and evolving, many wonder if virtual real estate is worth investing in.
What is the value of digital land in the Metaverse?
Virtual real estate prices fluctuate based on demand, but so far, they tend to rise. When Decentraland, one of the “big four” Metaverse owners (link is external), held its first auction in 2017, properties were priced at just $20. By 2021, they were selling for $6,000; by early 2022, the price had risen to about $15,000. In Metaverse, a plot measures 106 meters by 106 meters and is defined by the number of pixels in the plot.
As interest in the platform continues to grow, the potential price of a plot in the Metaverse seems limitless. While most plots are priced between $6,000 and $100,000, there are anomalies. For example, one of the largest sales was the purchase of a parcel (external link) adjacent to Snoop Dogg’s Sandbox property for $450,000.
How will metaverse ownership affect the industry?
The Metaverse is introducing big changes to the real estate industry. Here are some of them to keep in mind:
The Metaverse makes real estate available to a wider range of investors: the Metaverse offers properties in various sizes, locations, shapes, and price ranges. Users can purchase them in a wide range of currencies. Affordability and low cost make it possible for almost anyone to invest.
The emphasis is on size and location rather than utility: in real estate, size, location, and utility are important factors. In the Metaverse, the purpose of buying land is to develop or lease it. Size and location are paramount, while practicality takes a back seat.
It can serve as a platform for real activities: in the future, people will be able to organize more real events, such as fairs, exhibitions, weddings, and other social gatherings, in the metaverse. This could reduce the demand for real estate for these purposes.
Is the virtual property in the metaverse a good investment?
Currently, real estate in the metaverse appears to be an excellent investment. Since prices have risen 300% in just four years, it seems a good way to get rich quickly.
However, there are also risks. It is a relatively new sector, and it is difficult to say how successful some platforms will be in the long run. Privacy and security can also play a role in losses. It is best to proceed with caution.
The metaverse is forcing the real estate sector to appear in a new light. So far, it has been very successful, but, like all new things, time will determine its true viability.
Why buy property in the Metaverse?
The real estate Metaverse offers users a place to connect with other people online. People can use their digitized land to play games and communicate. Creators can monetize their property content by charging for access or trading their NFTs. Brands can use their virtual property to promote services, host virtual product launches, and offer unique experiences to their customers. For real estate investors, these digitized properties offer lucrative opportunities. Metaverse properties can be developed and resold or rented as in real life. There are many potential uses for metaverse properties.
How to buy a property in Metaverse?
Buying a Metaverse property is a bit like buying an NFT property. Your property title is a rare piece of code on the blockchain. This code certifies your ownership or rights to this digital parcel.
Therefore, you need your digital cryptocurrency wallet to start your real estate portfolio in the Metaverse. Some platforms use certain cryptocurrencies for transactions, so you must learn about this before signing up for a new wallet. Next, head to the Metaverse virtual platform and create an account. You must link your crypto wallet to the platform to purchase land and other assets. Select a piece of land and buy it.
Like in the real world, you can buy land through real estate brokers and managers in Metaverse. However, unlike in the physical world, Metaverse brokers do not need a license and are not subject to regulation. So be sure to work with reputable brokers.
How do I choose a property to buy in the Metaverse?
As with real estate, location is important when choosing a virtual plot in the Metaverse. The value of plots in The Sandbox and Decentraland is increasing as major brands such as Atari, Samsung, Miller Lite, and Adidas claim these virtual worlds. Many early buyers of properties adjacent to or near these worlds have seen a high return on their investment.
If you want to invest in metaverse real estate, look for areas with development potential. Places, where people can potentially congregate are more valuable than those located in mundane areas. Consider purchasing property nearby but not in populated areas. You can buy these parcels at a relatively low cost, create on them and wait for prices to rise.
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