The Metaverse has been the subject of much hype in the digital world, but is still a relatively new and misunderstood concept.
Often touted as the next generation internet, the Metaverse is not a single online environment, app or platform, but a decentralized collection of technologically enhanced spaces. Within these spaces, innovators will have the opportunity to leverage tools for collaboration, customer service and immersive experiences to build their own ideal landscape.
As interest in the Metaverse grows, countless business leaders and investors are looking for ways to purchase their own land in the renowned ecosystem. Metaverse real estate essentially gives the buyer access to an infinitely flexible environment in which they can build anything from a digital twin of his office space to a virtual reality world.
Here’s everything today’s digital pioneers need to know about Metaverse real estate.
What is Metaverse Real Estate? Introduction
On the surface, Metaverse real estate is really just pixels and code. Essentially, it is a type of digital real estate that gives buyers access to packages and parcels of land in a virtual world, often managed on a decentralized blockchain ecosystem. Like most assets in the metaverse, real estate is typically bought and sold using cryptocurrencies.
The environments that companies and investors can build within the Metaverse take up no physical space, yet can offer tremendous value. Innovators have purchased space within the metaverse to host events, create virtual workplaces, and even design new online communities.
Metaverse real estate often involves purchasing dedicated space within an existing metaverse landscape, such as Sandbox or Decentraland. These programmable platforms can leverage augmented reality, artificial intelligence and community capabilities, giving buyers the freedom to build their digital worlds. Each environment built into the larger “metaverse landscape” is essentially the metaverse itself, contributing to the entire virtual ecosystem of the future.
As interest in the metaverse landscape grows, the value of digital real estate is expected to rise in the coming years. According to some studies, real estate values in the Metaverse are CAGR 31.2% Until 2028.
Why Do People Buy Metaverse Real Estate?
It can be difficult to understand the value of the many digital assets that are gaining traction in the metaverse. When NFTs first hit the market, many didn’t understand why they would want to buy a virtual artwork or image. Similarly, quantifying the desirability of metaverse real estate can be difficult. Fundamentally, the value of Metaverse real estate is determined not by the land itself, but by what is built upon it.
Metaverse Real Estate provides a way for people to create their own virtual landscapes, where they can securely connect with others and develop unique experiences. Creators can monetize their assets by charging users access fees or selling NFTs. Brands can use virtual landscapes to advertise their services, provide customer service, or organize digital product launches.
Metaverse real estate is still a relatively new concept, but it has already caught the attention of many businesses and brands. HSBC purchased The Sandbox land to create a unique service experience for future metaverse customers. Samsung is building a virtual world in Decentraland and hosting events like the #RecycleUp fashion show. Even Nike has its own digital store environment built on Metaverse real estate, where users can interact with games, check out new products and buy NFTs.
How much is Metaverse Real Estate worth?
As noted above, the value of Metaverse real estate is increasing, but there is currently no one-size-fits-all price for real estate in the region. In 2017, when Decentraland held his first LAND auction, his parcel of Metaverse real estate was priced at just $20. In 2022, that cost has increased to around $15,000 per his LAND token. The value of Metaverse real estate depends on many factors.
First, the reputation of a large metaverse real estate agent makes a difference. Popular platforms with millions of existing users, such as The Sandbox and Decentraland, tend to see the highest real estate bids because they give buyers access to huge existing communities.
Metaverse land availability, or what users can do with the space they purchase, is also important. For example, many metaverse ecosystems allow buyers to customize their virtual environment with games, communication tools, avatars, NFTs, and other features.
Additionally, how companies and buyers actually treat real estate will determine whether it will increase in value over time.For example, if the UAE Dubai Metaverse Assemblythey promised to develop land within the Metaverse that would create up to 40,000 jobs and contribute billions of dollars to the economy over the next few years.
How do I buy Metaverse Real Estate?
Buying land in the metaverse is similar to buying an NFT. A “title deed” attributed to each purchaser is connected to a unique piece of code within the blockchain. To start a Metaverse real estate portfolio, a user must digitally set up his wallet, purchase cryptocurrencies, and request access to blockchain code from a Metaverse real estate vendor.
Some platforms have their own cryptocurrencies specifically designed for buying NFTs and real estate packages, while others use more popular currencies like Bitcoin. Additionally, as the metaverse landscape continues to evolve, there is an increasing number of brokers and realtors that are specifically focused on selling land in a decentralized environment. In some cases, you can purchase a property directly through a property management company.
Like buying real estate or investment assets, buying land in the Metaverse involves risk. While the average price of land parcels in the Metaverse is currently rising, there is always the potential that the decline or decline in popularity of the platform could reduce the value of real estate purchased by users.
Nevertheless, some early investors are already benefiting from the metaverse’s growth. A parcel of land next to Snoop Dogg’s Metaverse property has been sold for about $500,000.
The Rise of Real Estate in the Metaverse
Buying property in an environment without physical space may sound complicated, but it’s on the rise in today’s digital world. Interest in Metaverse land is constantly growing as more companies, investors and creators seek ways to claim their own section of the emerging Metaverse.
It’s difficult to know for sure whether the value of Metaverse real estate will continue to soar, but it seems certain that interest in this digital environment will continue.