Because of the metaverse, digital property is the market’s new frontier, therefore agents and brokers must understand what it means for the industry and how it operates. Nowadays, it appears that everything is available. Virtual artwork, virtual events, and virtual marketing are all possibilities. But what about virtual property? Is that something you can invest in, and if so, how much?
Enter the metaverse real estate market, an online platform where people can connect with real estate brokers, create a parcel of land, sell services, and host events. These virtual properties are frequently owned by businesses. They can be bought, sold, purchased, and leased just like any other sort of brick-and-mortar property or plots of land.
Let’s take a look at how to navigate this new virtual environment and how to actually deal in metaverse real estate.
How Does This Market Work?
Metaverse real estate can be purchased in the same way as NFTs are. Non-Fungible Tokens, or NFTs, is a one-of-a-kind or collectible virtual item that may be purchased and is entirely housed in the virtual world for items such as digital artwork, or in this case, virtual land sales.
Real estate in the metaverse, like NFTs, is purchased with bitcoin. After the transaction is completed, you will receive a one-of-a-kind piece of code made with blockchain technology that will serve as a deed of possession.
The “metaverse,” a digital platform where virtual reality and augmented reality are used to create a virtual world, is where parcels of land are bought and sold. The premise is that a metaverse platform connects the virtual and physical worlds to provide you with an immersive experience. Sandbox, for example, is a major metaverse platform that combines a game and a virtual world.
Unlike traditional video games, where users merely go through the levels until they complete the game, Sandbox allows users to claim control of the nearby property itself. Pieces of land are bought, sold, and traded regularly here with the trading volume soon to skyrocket.
The first thing is to create a digital wallet that will be used in the metaverse. A digital wallet allows you to conduct real estate transactions using software rather than real money. There are various types of digital wallets, and metaverse wallets are essentially blockchain wallets with some extra features. It enables users to operate with various cryptocurrencies, such as transferring, retaining, and accepting game tokens, but it also enables users to manage and build digital assets.
The Price of Land and Metaverse Properties
The average price for virtual real estate fluctuates according to demand, but they have been trending upward thus far. A plot of land costs only $20 when Decentraland, (one of the biggest metaverse platforms) real estate owners, launched its inaugural auction in 2017. By 2021, they were selling for $6,000, and by the beginning of 2022, they had risen to around $15,000. An individual plot in the metaverse is 106 yards by 106 yards in size and is determined by the amount of pixels in the plot.
With rising interest in the platform and user traffic, the potential value of a metaverse property appears to be limitless. While the majority of houses are priced between $6,000 and $100,000, there will be exceptions. One of the most significant real estate deals, for example, was the $450,000 purchase of a property close to Snoop Dogg’s parcel in the Sandbox.
Is This a Game Changer?
The metaverse holds significant changes for real estate sales. Consider this:
1. It makes real estate available to a broader range of investors: Real estate is available in a variety of shapes, sizes, locations, and price points in the metaverse. It is available in a variety of currencies. Because of the low cost and ease of access, practically everyone can become a real estate investor.
2. It prioritizes size and placement over utility: Size, location, and utility are all significant considerations in real estate deals. The goal of purchasing land in the metaverse is to develop it or lease it out. This prioritizes size and location while ignoring utility.
3. It can be used as a platform for real-world activities such as: People may host more real-world activities in the metaverse in the future, such as trade shows, sponsor events, weddings, and other social gatherings. This could lessen the need for physical attributes utilized for these reasons.
Is This The New Investment Opportunity?
Right now, metaverse real estate appears to be an excellent investment. With land prices rising by up to 300% in just four years, it appears to be a terrific way to get rich quick and a great addition to any property owner’s investment portfolio.
However, it’s not the same as the real estate industry in reality, so are risks involved. It is a new entity, and it is difficult to predict how successful some platforms will be in the long run. Losses might also be caused by concerns about privacy and security. Proceed cautiously, and stay in the loop with the communities of investors.
The metaverse casts a whole new light on real estate values. It has been extremely effective thus far, but like with anything new, time will tell whether it is truly viable or a speculative investment.
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