The ‘Metaverse’ Real Estate’ is a relatively new concept yet it is growing fast. Even though investing in it might incur huge risks and loss, it has been a top grossing sector in the NFT space in 2021, proving its high potential for big returns. So you have to do good research work like all other ventures before investing in Metaverse Real Estate. The opportunity within the metaverse is huge and many people are recognizing that with the growth that has been seen over the past few years.
Here is a comprehensive guide to Metaverse Virtual Real Estate which covers it all and will help you know what Metaverse Real Estate is all about.
What is Metaverse Real Estate?
The metaverse is made up of different platforms. These platforms allow people to interact with others and build their digital dreams. Those dreams can be anything, from miniature games in haunted cemeteries to advertising billboards or commercial districts and metaverse HQs for businesses already established in the real world. These are presently the only four platforms in operation that offer significant opportunities for purchasing virtual real estate:
- The Sandbox
- Somnium Space
The virtual worlds inside the Metaverse are digital real estate segments called parcels. One can buy and sell parcels using a Metaverse platform’s currency,i.e., cryptocurrency.
With the rise of metaverse real estate, it is expected to grow and expand as well. The value of Metaverse real estate is estimated to have a CAGR of 31.2% from 2022 to 2028.
THINGS YOU SHOULD KNOW ABOUT METAVERSE VIRTUAL REAL ESTATE :
If you want to Purchase Metaverse Real Estate :
There are many lucrative aspects if you do like :-
- It gives a platform and a chance to connect online with other people.
- You can use your digitized land to play games or do other activities and socialize.
- As a creator you can monetize the content of your property by charging.
- As a brand you can use virtual properties for advertising, launching their products and offer exclusive and unique customer services.
- Just like real ones, metaverse properties can also be developed, leased, rented or resold.
How to Buy a Metaverse Real Estate Property :
Keep these points while buying a Metaverse Real Estate Property :
- When you buy a metaverse property, your ownership deed is a unique piece of code which certifies your rights over the piece of land.
- You need to have your own crypto wallet.
- You need to sign up with your Metaverse platform and create an account.
- You need to link your digital wallet with the platform to buy the assets.
- Choose a parcel of land and buy it.
Platforms to Buy Your Metaverse Property:
The 4 platforms that own a total of 268,645 parcels are –
- Somnium Space
Which Parcels of Land should you buy on Metaverse :
Keep these points in mind before making a choice:-
- Location is the primary point to focus on just like in real life ones while choosing the land you want to buy.
- Choose from parcels of land beside the plots of big brands.
- Go for developing areas.
- Don’t go for nondescript areas.
- Go for developing areas and not developed ones as then you can buy at relatively low prices and build them. Then you can wait for prices to go up to resell them.
Consequences of Metaverse Virtual Real Estate :
- It redefines the value of land.
- It deprioritized the utility factor.
- It allows a wider lot of buyers to invest in it.
- It is progressive and forward looking for Metaverse to blow up.
- But it asks for higher risks which can lead to great losses too.
- It reimagines a host of real life activities and interactions for metaverse properties.
Metaverse Land Purchase Trends in 2022 :
Some of the top digital real estate trends for this year include:
- You can expect over $1 Billion sales.
- Depending on industry movements, the market seems to be volatile.
- Among the early movers, you can expect the corporates and luxury brands topping the list.
- Events on Metaverse land could become a staple.
Yes the whole Metaverse Virtual Real Estate demands huge risks involving large investments but it has huge potential too. It is a futuristic approach of what our world will turn into in the future.
Also, read our article on: “What is Virtual Real Estate And What’s Its Impact On the Real Estate Industry”