Real estate in the Metaverse—land and buildings within your virtual environment—is really just pixels on your computer screen, but it’s growing in value.
You can build virtual lands to create useful experiences for advertising, marketing, socializing, and entertainment. Types of properties built into this virtual environment include corporate headquarters, billboards, and casinos where you can play games online with 3D avatars. The value of each parcel is determined by the experience it offers, as well as other factors such as collectability, platform popularity, and market sentiment.
When Facebook announced it would change its name to Meta in June 2022 and showed interest in the Metaverse, the value of digital real estate increased, with a compound annual growth rate (CAGR) of 31% from 2022 to 2028. estimated to increase further. According to recent market data from MetaMetrics Solutions.
Decentraland is a prime example of real estate investment potential. Decentraland Foundation Creative Director Sam Hamilton said: “When we first sold the land, it all sold for $20. [€20.50] I bought a pop and sold it all.I think the cheapest you can buy now is $3,500. [€3,591]. So it turns out that speculators have already made a lot of money. ”
In 2021, 116 parcels of digital land in Decentraland were sold for a record €2.49 million worth of cryptocurrencies. Buyer Tokens.com has purchased a property in the heart of Decentraland’s Fashion Street district to facilitate the company’s expansion into the digital fashion industry.
“It’s not the land itself that counts, it’s the experience you build on it,” explains Hamilton. “Just like in the real world, different parts of Decentraland, different parts of the city, have higher demand than others, like where there are other nightclubs and where there are casinos. If you can park the experience of ‘It’s great’ it’s worth much more than anywhere else on the map. ”
Decentraland will record total sales of €514 million in 2021, and that figure is expected to surpass €1 billion in 2022.
The two-day Dubai Metaverse General Assembly in the United Arab Emirates in September brought together over 300 professionals to discuss opportunities in virtual environments. Dubai’s flagship metaverse strategy aims to create 40,000 jobs over the next five years, adding more than €4 billion to the emirate’s economy.
Hamilton spoke at the event to update the audience on the latest technological developments in the Metaverse. “I’m very excited,” he says. “We’ve seen advances in technology in the last two months. Software is growing really fast. Blender is the program used by 90% of people building for Decentraland and other metaverses to create textures. We have integrated an AI system to make the textures seamless, which is very difficult, but with the use of AI technology, it is possible, and it takes the beauty of Decentraland to the next level. I think it will happen.”
Textures (images applied to 3D objects) create the illusion of materials ranging from wood to transparent glass, adding depth to pixel-created scenes.
Other future technologies revealed at the conference included new VR (virtual reality) headsets due to launch this year and language tools that facilitate instant translation within the Metaverse. Additionally, Meta plans to introduce a haptic glove that allows users to physically experience the Metaverse. Wearing gloves allows him to move chess pieces in a board game, for example, or even play the guitar in a music class.
The Metaverse is still a young concept, but with rapid progress and investment, in theory, an avatar of guitar legend Brian May could teach tactile glove wearers lessons in a digital recreation of the famous concert venue Madison Square Garden. can give. That’s the work. Virtual real estate worth far more than music.
For more information, visit the Destination Dubai hub on Euronews.com.