When the virtual and real worlds eventually become one, why not own a piece of land there? After all, you need a home in the metaverse if you have one in the actual world. While this may seem out of the ordinary at first, a certain kind of investor may find it a good financial decision to own real estate in a virtual world that is superimposed over the physical one.
Only time will tell how much this virtual land is worth, but in early 2021, the going rate was $1,000. These days, it’s not uncommon for landowners to ask for three times as much, with some even going into the six figures. Do you want to know more about Metaverse real estate and how to buy virtual land? Are you interested in it then?
Introduction To Metaverse Real Estate
Metaverse is an amalgam of many virtual worlds where users may meet and engage with one another as their virtual selves (or “avatars”) to do everything from socializing to conducting business to attending virtual events.
Literally, “Metaverse real estate” refers to a piece of digital land in a virtual environment. Virtual landowners who invest in this market are the gatekeepers to NFT trading, multiplayer gaming, and socializing. There is no difference between real estate in the actual world and virtual property in the Metaverse.
In the virtual world of the Metaverse, people may buy and sell virtual properties in the form of 3D urban areas and use them to engage in a wide variety of simulated activities, from socializing and commerce to role-playing and gaming.
By shining a light on the data, we can see
- The market for Metaverse real estate was worth around $500 million in 2021 after prices increased by almost 700 percent.
- The market is projected to double, reaching over $1 billion by 2022.
- In 2020, global demand for Metaverse real estate was estimated at $358 million.
- The real estate industry in the Metaverse is projected to generate $3,600,000,000 in revenue by 2025, expanding at a compound annual growth rate (CAGR) of 45.2% from 2020 to 2050.
Real Estate Is a Business in The Metaverse, so Why Not Reap Its Benefits?
Many well-known companies, personalities, and brands throughout the globe have already started playing in Metaverse Land. Buying, selling, and making money are now the accepted norm.
Both the physical as well as digital versions of real estate are intended for growth. A year ago, creators of virtual worlds set out into the world, intending to achieve massive success. They went ahead and began selling property to interested parties in anticipation of future riches. They performed a fantastic job of realizing their objectives.
Contrarily, developers and agents in the real estate Metaverse have created VR tools that let users create avatars that look and act like them, allowing them to conduct business, interact socially, and even make profitable investments like purchasing a property.
Why Are People Buying Virtual Land in The Metaverse? – Investment in Virtual Real Estate
People’s interest in virtual reality, augmented reality, and metaverse property increased when Meta announced its intention to invest in the sector. Putting money into the metaverse may seem strange, but there are two main attractions for potential investors.
Primary Consideration:
Just as in the actual world, there is a finite amount of virtual property. Today, holding virtual property ownership is synonymous with holding exclusive possession of a piece of land in the Metaverse. You may do many different things with these plots of land, and the results might be income-generating assets like rentable venues or structures that advertise a brand or charge a fee.
Second Consideration:
Each piece of Metaverse is protected with a one-of-a-kind token that can’t be exchanged for anything else (NFT). An NFT is evidence of ownership of a digital or physical property. The NFT of virtual real estate guarantees your ownership and allows you to transfer it to another person. It also automatically records all transactions related to that property, which greatly reduces the amount of title work required. It’s a digital deed for the modern day.
Further Arguments in Favor of Buying Virtual Property:
- Using someone else’s virtual territory, we may interact socially, play games, and do other tasks.
- Land in the Metaverse is what makes internet socializing possible.
- Making money from content creation is also possible via trading NFTs among creators.
- Using their Metaverse property, companies may organize virtual product launches, promote their services, and create memorable customer experiences.
- It is possible to build on, rent out, and resell real estate in the Metaverse just as we would in the real world.
- Digital land parcels are a viable investment for the real estate market.
Where may one find Metaverse Real Estate for Sale?
Land in the metaverse is currently represented by non-fungible tokens (NFTs). These NFTs are distributed ledgers or records established on the blockchain that may be used to verify who owns a certain digital asset. Tokens for NFTs may be bought and traded by their creators on peer-to-peer networks called NFT exchanges.
Top Metaverses to Purchase Land
Sandbox and Decentraland are the two most well-liked places in the metaverse to invest in real estate. Virtual real estate purchased by celebrities like Snoop Dogg and Paris Hilton for over $500,000 is now worth millions. Even more forward-thinking corporations have jumped on the cheap-to-start-with-virtual land bandwagon to shop in the metaverse and take advantage of the growing consumer base there. Companies in the Fortune 500, such as JPMorgan Chase, HSBC, and Samsung, have all bought property in the virtual world.
Virtual Land Marketplaces
Sandbox and Decentraland provide virtual real estate that can be traded on NFT exchanges. OpenSea is a popular marketplace that accepts Ethereum (in both Sandbox and Decentraland) and MANA (only in Sandbox). Users may participate in a land auction using NFT markets.
How to buy metaverse real estate is very trending, since landowners may list their property for sale and accept or reject offers, but it doesn’t seem that buyers and sellers can negotiate the price of the land. When users buy a plot of virtual property, they can also purchase works of virtual art to adorn their new digs.
How To Buy Land In The Metaverse?
Those who want to know how to buy land in the metaverse must first acquire cryptocurrency, which may be done with real-world money. To buy land, Ethereum is the most popular coin; however, MANA may be used in certain metaverses. A user may place bids on virtual land with enough Ether or MANA in a crypto wallet linked to an NFT exchange. The NFT for the land is also maintained on the blockchain, so if an offer is approved, the cryptocurrency may be traded in for it. With blockchain, we can be confident that resources are scarce and get clarity on who owns what.
What is the price of land in the Metaverse?
As individuals may ask anything related to how to buy real estate in the metaverse, the asking prices vary widely. In this market, as in any other, the asking price seldom coincides with the selling price. As of the time this article was published, the cheapest plots of land were going for about 2.3 Ethereum (or $3,500). However, nearby properties are being offered for millions of dollars.
What Can You Do on a Virtual Land?
The million-dollar issue surrounding Ethereum is, “Why would someone want to know how to buy land in the metaverse when the same money can buy actual estate?” First, virtual land is valuable because all signs point to a future where more and more of our lives are online. Those who want to live in this digital universe need a location to establish their roots. Second, owning the property may still be profitable even if the investor chooses to renounce the virtual existence. It is possible to generate income from the property in several ways, and it may always be sold later, preferably after a time of significant appreciation.
Renting Opportunities
Whether or whether renting will be a practical option in the metaverse is still up in the air. In contrast to the physical world, where necessities are required for survival, the metaverse has no such requirements. Real estate is rented in the real world because people need somewhere to live. From a strictly economic standpoint, there are no “needs” for virtual real estate in the metaverse, just desires. However much housing is rented, it will be driven more by personal preference than by need.
Towards a New Future
For all the excitement around metaverse real estate, it’s important to remember that it’s still only one investment option among many. Anyone making claims about the technology’s future worth is as foolish as someone attempting to sell a bridge in Brooklyn, given the technology is so novel. Like when Facebook, YouTube, and Twitter first came out, and people had no idea how to utilize them, we find ourselves in a similar position today. It’s possible that the transition of human wants and needs from the actual world to the digital world hasn’t been properly handled in many digital environments. Since the first movers are seldom the greatest, other virtual worlds may eventually fade away.
Conclusion
Despite this skepticism at the outset, the metaverse will likely become an integral part of our lives. There are just too many places that technology can make up for where life falls short. The Wharton School takes great pride in being among the few universities to provide training for the future generation of metaverse leaders.
The advent of the metaverse might revolutionize the method in which commerce is done. The Wharton School’s Metaverse Course is accepting new students right now, and you can learn more about it and sign up for it on our information page.
