A 31-year-old Indonesian man by the name of Clerkclirk paid $36,000 for a virtual penthouse and sold it two days later for more than triple the cost. Armando Aguilar, another metaverse real estate investor, boasted, “My metaverse backyard is appreciating more than my real estate.” The Sandbox metaverse platform saw a 1,400-fold increase in the value of Aguilar’s virtual land.
More and more companies and private investors purchase land in the metaverse in an effort to duplicate the aforementioned achievements. You are likely asking yourself the following queries if you are thinking about investing in virtual property and using services for the development of metaverse software: How can I purchase metaverse virtual property? Is it secure to start a real estate business in Metaverse? How do you pick the best location? And what will the price be?
Continue reading in the hopes that it will assist you in making a choice.
It’s really exciting to think about starting a real estate business in the metaverse, which is a virtual reality space. Not only is it a thrilling endeavor, but it also has the potential to be quite profitable. To get started, here are the steps you can follow:
- Market Research and Planning:
- Legal and Regulatory Considerations
- Choose a Metaverse Platform
- Develop Your Virtual Properties
- Set Pricing and Monetization
- Marketing and Promotion
- User Engagement and Community Building
- Customer Support and Maintenance
- Scale and Diversify
- Monitor and Adapt
Introduction to Metaverse in Real Estate
Metaverse real estate refers to land plots in virtual worlds. In the simplest sense, they are pixels. But they’re more than just digital pictures. On virtual reality platforms, they are programmable spaces where users can connect, play games, sell NFTs, attend meetings, go to virtual concerts, and engage in a variety of other virtual activities.
With the introduction of the Metaverse, it is anticipated that digital real estate would grow and flourish. In reality, there was a metaverse real estate bubble after Facebook changed its name to META and declared a keen interest in the Metaverse in the fourth quarter of 2021. The value of metaverse real estate is anticipated to increase from 2022 to 2028 at a CAGR of 31.2 percent as its acclaim rises.
Reasons to invest for real estate business in Metaverse
- People can interact with others online.
- On their digital land, people can interact and play games.
- To commercialize their work, creators can either charge a fee or exchange their NFTs.
- Brands can use their virtual assets to market services, launch virtual goods, and offer distinctive customer experiences.
Is acquiring a Metaverse asset comparable to buying an NFT?
Buying a metaverse asset is a lot like buying an NFT. Your deed of ownership, however, is a unique bit of code on a blockchain. This code attests to your rightful possession of that digital parcel of land. Therefore, in order to begin your metaverse real estate portfolio, you must have your digital cryptocurrency wallet. You should research the platforms that use different cryptocurrencies for their transactions prior to opening a new wallet. Then, visit the online metaverse portal and create an account. In order to purchase land and other assets, you must next link your digital wallet to the website. Finally, pick a property and purchase it.
Similar to real-world properties, metaverse land can be bought through brokers and property managers. Metaverse brokers are exempt from all regulations and license requirements, unlike in the real world. As a result, be sure the real estate business in Metaverse you work with should be trustworthy.
How to Buy a Metaverse Property?
The process for purchasing a metaverse asset is the same as buying an NFT. A special piece of blockchain code is your ownership deed. This code verifies your ownership of or rightful claim to that digital property. To get started, you’ll need your digital cryptocurrency wallet. Check platforms before signing up for a wallet. The reason for this is that some websites only permit transactions using specific cryptocurrencies.
You must create a profile on the virtual metaverse platform in order to go to the next level. To buy real estate and other assets, you must link your digital wallet to the website. You can just buy the land once you’ve made up your mind and settled on the property you want. Additionally, you can purchase land through property managers or metaverse real estate agents. In contrast to real estate agents, metaverse agents, and brokers are not bound by any regulations or rules about licensure. Therefore, it’s essential to work with a reliable party.
Real Estate Business in Metaverse- Why Not Reap Its Benefits?
Numerous major corporations, well-known figures, and companies from all over the world have already entered the Metaverse Land game. Nowadays, purchasing, reselling, and earning items has become the new norm.
Real estate and virtual real estate are both intended to prosper. In an effort to achieve enormous success, developers started exploring the possibility of creating virtual worlds a year ago. In order to make money, they started selling land to potential buyers immediately. They excelled at accomplishing their goals.
On the other hand, developers or agents in real estate business in Metaverse have created virtual reality to enable users or players to use tools for creating avatars that are comparable to or better than them in order to work, socialize, and make profitable investments, like purchasing land.
Putting Some Light on The Facts and Figures-
- The price of Metaverse property increased by around 700% in 2021, pushing the market to about $500 million.
- The market is anticipated to grow by twice to nearly $1 billion in 2022.
- In terms of revenue, there will be a $358 million global demand for Metaverse real estate in 2020.
- The income generated by the Metaverse real estate market will increase at a CAGR of 45.2% from 2020 to 2050 and will amount to $3600 million in 2025.
- The ten greatest metaverses have 622,436 plots of land.
- The 10 largest virtual world platforms have sold a total of $1.9 billion worth of land.
- The global Metaverse Real Estate market has a value of USD 821.9 million in 2021.
- By 2028, it is anticipated to expand at a compound annual growth rate (CAGR) of 39.10%, reaching a value of USD 5953.6 million.
Key Trends Shaping the Metaverse Virtual Real Estate
# Rise of Extended Reality Products
Extended reality products such as VR and MR headsets, AR solutions, and their programs have become far more accessible today than what they used to be. As the tech gets cheaper, more and more people have become capable of experiencing these products – which is ideal for people looking to experience the immersive and virtual nature of real estate business in Metaverse. And important for how VR is used in real estate.
# Development of Blockchain Technology
Blockchain is an important part of the Metaverse if it is supposed to be decentralized, and platforms opting for Metaverse services are increasingly opting for this. This is because blockchain adds a layer of security and interoperability to any Metaverse real estate project. Keep the platforms future-proof, free of any single entity controlling the economic activities in any virtual space.
# Popularity of NFTs
With the introduction of blockchain technology for Metaverse real estate development, the popularity of NFTs is also a key trend. NFTs will be used to tie and sell tokenized parcels of land in the Metaverse among other assets. It is essential that more users are open to using and adopting these NFTs as an integral part of any platform’s economy and to establish ownership in the virtual space.
Challenges Affecting the Real Estate Metaverse
The Metaverse is appropriately referred to as a disruptive technology in the tech industry, given its characteristics and potential. Though the Metaverse is currently in what can only be defined as its “formative stages,” some rather significant businesses have already expressed a serious interest in its development and in learning more about what real estate business in Metaverse would entail.
Examples of well-known platforms where users can buy, sell, and construct new homes on digital plots of land are Decentraland and The Sandbox. Digital real estate is also a focus of Roblox, Axie Infinity, and Somnium Space.
It’s possible that it will take some time before people’s computers catch up, given the technology currently available to typical users.
This also applies to how affordable and well-accepted VR and MR headsets are right now in terms of price and consumer readiness to embrace them. In order to experience the Metaverse with high-definition and immersive images, better hardware is also required.
Along with the real estate sector’s accessibility to AR and VR.
Any Metaverse real estate platform will typically also demand its customers to have high-speed internet in addition to better technology for graphical fidelity. As the initiative grows and additional locations or properties are added to the platform, this will become true. Users won’t be able to get a smooth and seamless experience without fast internet speeds because problems like buffer and lag will be too difficult to deal with.
# Single Standard
There isn’t currently a single standard that covers all projects and platforms in the Metaverse. This implies that many projects have various designs, internal systems, economics, etc., resulting in a wide range of experiences for the typical user.
As a result, no platform or business may function outside of the project’s intended purpose in the Metaverse. And this will be true for initiatives managing real estate business in Metaverse.
The metaverse is only beginning. Despite the fact that the infrastructure of this new world is still being built, certain businesses and brands are utilizing the opportunity to engage in it. Additionally, it is a surefire way to join a progressive zeal that will change the course of human history. Due to the immutability of cryptocurrencies and smart contracts, investors should take caution to understand terms and avoid scams fully.
Real estate in the digital world operates similarly to those in the real world. Those wishing to purchase Metaverse real estate should go ahead and seize the opportunities that are present. Do your homework before buying Metaverse real estate. To design your metaverse real estate according to your tastes and needs, use the best metaverse development services. You can get specialized services from the Metaverse real estate app development that will help you make money and succeed with real estate business in Metaverse.