The Metaverse is a virtual environment where users can engage in the same economic, social, and cultural activities we do in the “real” world.
Like social media, the Metaverse exists only in cyberspace, on remote servers.
However, while social media platforms are restricted to text, images, and video, the Metaverse allows for a fully immersive virtual existence.
You spend your days as an avatar in the Metaverse, socializing with other digital beings, watching live performances, conducting business, and experiencing life in a completely digital setting.
This is now being taken seriously by brands. While some companies, like Samsung, are setting up permanent exhibition spaces in the Metaverse, others, like McDonald’s, are registering trademarks for online eateries that will eventually deliver their wares to the real world.
Furthermore, there are many leading metaverse businesses and metaverse crypto coins present.
The idea of buying real estate in the Metaverse is similar to the concept of real estate in the real world.
- Virtual properties in the Metaverse are rising in demand as more and more companies, and famous people see the potential for reaching their audiences through this medium.
- Somnium Space, The Sandbox, Voxels, and Decentraland are just a few of the most well-known Metaverse platforms where users can buy and sell virtual real estate.
- The Metaverse makes it simple to buy and sell real estate through in-game and secondary markets.
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What Is Metaverse Land?
In most cases, users of a metaverse can easily acquire and use free plots of land and other types of land for a wide range of purposes. Non-fungible tokens (NFTs) representing ownership interests in this land can be purchased and traded for other NFTs, cryptocurrencies, or fiat currency. Users can create various experiences, play games, socialize, and host events in a metaverse space, making it a valuable resource. Since they are NFTs, establishing ownership of the property and any associated digital assets is straightforward. Every sale or purchase of metaverse real estate is documented and available to the public. Typically, users can buy or sell land in the Metaverse through the platform’s marketplace, though they can also use NFT services like OpenSea and Rarible.
Facts and Figures About Metaverse Land
- The market for Metaverse real estate was worth about $500 million in 2021 after prices increased by nearly 700%.
- The industry is projected to double by 2022, reaching roughly $1 billion.
- Demand for Metaverse real estate generated an estimated $358 million worldwide in 2020.
- The Metaverse real estate market is expected to generate $3,600,000,000 in revenue by 2025, growing at a compound annual growth rate (CAGR) of 45.2% between 2020 and 2050.
Also Read: How Much Does Metaverse Land Cost
How To Buy Real Estate In The Metaverse
Step 1: Choose a Metaverse Platform
To begin, select a Metaverse platform you would like to invest in. Consider the land’s size, the asking price, and the seller’s reputation before settling on a real estate metaverse platform. If you already have a brand name in mind, you can use that; otherwise, you should investigate various options to determine which platform best meets your requirements. Some parts of your city’s real estate market command high prices, but if you’re willing to take on more risk, you can find attractive bargains in up-and-coming neighborhoods.
Decentraland has increased demand and revenue by hosting events like a 4-day festival with Paris Hilton and Deadmau5, and virtual fashion shows promoting brands like D&G and Adidas.
Step 2: Open a Digital Crypto Wallet
You’ll need some form of cryptocurrency to conduct business in most metaverses. A digital wallet is required to store your virtual currency and other digital assets. Which wallet you use is determined by the metaverse system you’re a part of. We recommend using a digital wallet compatible with your web browser for the smoothest transaction processing. MetaMask and Binance Chain Wallet are two excellent examples of modern digital wallets. It is important to ensure that whichever cryptocurrency wallet you choose supports the currency of the digital project you intend to invest in. The most popular platforms and how to connect them will typically be detailed in metaverse platforms.
Stage 3: Enter the NFT Market
After deciding on a metaverse platform, connecting your digital wallet, and buying some cryptocurrency, the next step is to determine which piece of land would be best to invest in.
All ownership in the Metaverse is represented by non-fungible tokens (NFT). The platform’s store is where you should go if you want to invest in some digital real estate.
Keep in mind the following primary facet of Metaverse land acquisition:
- Cost of the property,
- Dimensions of the digital world,
- Payment for the property is required in this digital currency,
- Owner of the property,
- Any financial records,
- Considering the scope of the Metaverse,
- Practical quality (events space, gallery, meeting areas, shop, and more),
- Is your neighborhood convenient to public transportation, restaurants, theatres, museums, etc.?
- The virtual equivalent of the higher real estate costs associated with being located near busy commercial areas and transportation hubs is also true here.
Also Read: How To Build A Retail Store In Metaverse
Step 4: Confirm Your Purchase
When you’re ready to purchase a piece of land in the Metaverse and have enough virtual currency in your virtual wallet, you can do so through the marketplace (or a third-party platform). Your NFT will be available in your wallet once the real estate transaction is finalized and closed. In addition, the land’s title will be changed to your name, just like that. You now have the option of either holding on to your property for the foreseeable future, developing it further, or relisting it and selling it again, hopefully at a profit.
Where Can I Find Virtual Land for Sale?
Before delving into the specifics, it’s important to note that most platforms will only be able to offer a finite number of parcels. This contributes to maintaining a robust online economy by increasing the perception of scarcity in digital form (one hopes). The virtual world of Decentraland, for instance, is made up of 90,601 equally sized “LANDS,” while the “LANDS” make up the “Sandbox” number 166464. However, there are many other choices, each providing regions well suited for a wide range of marketing, commercial, service, and event-related endeavors. OpenSea’s market overview lets you view virtual world rankings from 30,000 feet.
Decentraland is powered by the Ethereum blockchain. Create, sell, and enjoy your apps and media with the help of this platform. If you’re familiar with Decentraland, you’ll know that LAND refers to the finite 3D virtual space that can be explored within this metaverse platform. This cryptocurrency is securely stored in an Ethereum smart contract and cannot be exchanged for other currencies.
To buy and sell NFTs and other collectible digital things like avatars, in-game assets, digital art, and trading cards, check out OpenSea, a revolutionary decentralized marketplace. OpenSea is a full-stack NFT, Metaverse real estate marketplace, and user interface layer between regular consumers and the blockchain, making NFTs accessible to anyone.
Lots on the Sandbox are denoted as LAND and can be acquired either directly from the Sandbox platform or secondhand on NFT exchanges like OpenSea and Rarible. Keep in mind that official sales of these tend to fetch higher prices than land prices.
One of the smallest virtual worlds is called CryptoVoxels, and it was originally made up of only 3,026 individual blocks. These can be purchased with either USD or ETH in primary markets or on OpenSea. CryptoVoxels, in contrast to many other metaverses, has continued to grow and now contains 7351 individual plots. Currently, the cheapest land can be purchased for around 1.899 ETH (roughly USD 5,335).
Somnium Space is a newer metaverse that uses Opensea to power its commercial infrastructure. This product stands out because it is compatible with virtual reality, while most of its established competitors are not. To buy a parcel with ETH, you must first link it to Metamask.
Also Read: Top 10 Food Brands in The Metaverse
The Future of Virtual Real Estate
There is a lot of optimism about the future of virtual real estate because many companies are planning to expand into the Metaverse to serve their customers better. If you want to take advantage of the Metaverse’s current momentum, learning how to sell virtual real estate in the Metaverse is a smart move. Surging land prices in the Metaverse and instantaneous bidding at land auctions on platforms show brisk demand in this market.
What You Must Remember Before Buying Property in the Metaverse
Unlike traditional real estate investments, in which the land you buy continues to exist even if the company that sells it goes out of business, digital land in the Metaverse is effectively nonexistent if the platform from which you purchased it fails and goes offline. A further consideration is the high volatility of the cryptocurrencies used to transact in the Metaverse’s real estate market. The value of your virtual possessions in the Metaverse will rise and fall in tandem with the value of the digital currency itself.
It is essential to weigh the risks and benefits thoroughly before putting money into the Metaverse’s highly speculative digital real estate market.