Investors are venturing into the real estate Metaverse. Companies are spending millions of dollars on Metaverse real estate, hoping to double or triple their investments soon. On October 28, 2021, Facebook announced its rebranding as a Meta, ushering in the Metaverse as the future of the Internet. At the time, Metaverse platforms were just small communities of investors and players. However, people’s interest grew after Facebook’s rebranding.
Republic Realm, a digital real estate investment firm, has produced an in-depth report on the Metaverse’s land sales activities in 2021. Real estate transactions across the largest Metaverse platforms are estimated to have reached $ 187 million by November 2021. more than double the total sales in November 2020.
As sales of the Metaverse’s virtual land have grown, the value of the game’s tokens has gone up just as well: one plot of land sold for an average of $ 100 in January 2021. Individual plots will be sold for an average of $ 15,000 by December. 2021.
In 2021, metaverse real estate sales reached $ 500 million, and in January 2022, metaverse real estate sales reached $ 85 million. According to current trends, sales could more than triple by 2022.
The Metaverse is attractive because it functions in an economy free from external entities such as governments and banks. Users determine the price of a digital good. It is not necessary to spend a lot of money to be a member of the Metaverse. You can also use it as a social area for you and your global friends to reconnect, show off your avatar’s distinctive wearables, and meet new people.
Why is it important to invest in Metaverse real estate?
Metaverses surpass the real world in terms of the possibilities you can create with your “land”. You can build a shopping mall, house or skyscraper in minutes. Because transactions in the Metaverse are quick and easy, the value of a digital item grows exponentially.
Investing in real estate in the Metaverse is like playing Monopoly. The ideal would be to buy as many properties as possible. The location of a property is quite essential when deciding which one to buy. No matter how expensive they are, the areas with the most user traffic will increase in value.
In fact, Snoop Dogg has a neighbor in the Sandbox metaverse who paid $ 450,000 for the adjacent property lot. This is comparable to 71,000 SAND in Sandbox cash. As Snoop Dogg’s digital home attracts visitors every day, the neighbor profits from the traffic on his ‘land’, which increases the value of his digital property.
The rush to invest in real estate in the Metaverse is eerily comparable to the domain name craze. Virtual land is a finite commodity, similar to how individuals have scrambled to obtain distinctive domain names on the Internet. There can only be a limited number of virtual land owners on current Metaverse systems.
Buying a piece of virtual land offers a world of possibilities for you and the rest of the inhabitants of the metaverse. As a land owner, you have the opportunity to share your experience of working on the property with others in the digital world. Creators can display their content collection in shopping malls, businesses and event venues.
How to invest in real estate in the Metaverse?
Investing in real estate in the Metaverse is essentially identical to buying cryptocurrencies. Prepare your investment portfolio and determine how much you are willing to risk by buying virtual property.
Each Metaverse platform has its own money. Decentraland, for example, uses MANA, while Sandbox uses SAND. To make virtual purchases in the Metaverse, you must first create a digital wallet.
Since each Metaverse has its own coin, the value of its coin is unaffected by other Metaverses. That said, MANA and SAND cannot be used interchangeably in metaverses.
- Choose the metaverse platform you want to join.
Choose the metaverse platform you want to invest in. Decentraland and Sandbox are standard options. On the other hand, Metaverse real estate plots are quickly picked up by other investors due to their appeal among Metaverse fans. If you wait too long to enter the Metaverse, you may get stuck with junk offers away from where most people congregate. There are multiple metaverses on the internet, so do your homework before you dive in.
- Navigate to the NFT Market.
Each property in the Metaverse is a non-fungible token, also known as an NFT. Go to the platform market to buy virtual land. Compare and contrast prices and geographic attractiveness. Consider your intentions to keep the land: Will you sell it once it reaches a certain value? Will you rent it to well-known companies?
Are you going to keep it for your children who will inherit it?
- Connect your wallet to the market on the site.
If you want to buy virtual land on Decentraland, Sandbox, or on the market of any other metaverse platform, you need to link your wallet first. Once connected, you will get your purchase as an NFT. To ensure a smooth and hassle-free transaction, save enough money in your wallet for undeclared transaction costs.
Is the Metaverse Real Estate Market Overheating?
Since 2020, virtual real estate investors have only grown, and prices have steadily risen. With the decentralized economy of metaverse, metaverse platform developers have no control over price inflation.
The Metaverse may be stable, but it is far from complete. After acquiring property traits, investors must use caution in their actions. There is still a long way to go before everyone in the Metaverse has a chance to experience and fully immerse themselves in the digital world. Other metaverse platforms are also coming, with better prospects and services. Users can take the time to decide whether to invest in a virtual property.
The Metaverse is an innovative notion that offers excellent remedies for today’s Internet limitations. People can interact and have an immersive experience without leaving their homes thanks to the 3D environments. Aside from sociability, the Metaverse offers prospects for generating wealth through virtual methods.
However, the Metaverse is still in its early stages. Despite the hype and rush of virtual real estate investors, there is still a lot to learn about the feasibility of the Metaverse. The technology required to experience the Metaverse is far from universal. Metaverse platform makers have yet to take more concrete steps to protect the privacy and security of their users.
Whether you are optimistic or pessimistic about the future of the Metaverse, it is nowhere and has taken over a substantial portion of the Internet.
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Rachel Maga is a technology journalist currently working at Globe Live Media agency. She has been in the Technology Journalism field for over 5 years now. Her life’s biggest milestone is the inside tour of Tesla Industries, which was gifted to her by the legend Elon Musk himself.