Land in the virtual metaverse is becoming the new investment. The Metaverse concept might look like an intriguing idea. But things are changing. The buzz around Metaverse is real, and the real estate business is reaching new dimensions in the Metaverse. Tech giants have already made their first move and bought lands in the metaverse. The cost of virtual real estate increased by 879 percent between September 2019 and March 2022, according to the economy middle east. So what are you waiting for? Let us immerse ourselves in the technical frontier of Metaverse real estate.
This article will take you through the following headings.
- What is metaverse real estate?
- Evolution of real estate technology
- Applications of metaverse real estate
- How to buy real estate in the Metaverse
- Why you should consider buying land in Metaverse
- How to choose the right property in metaverse real estate
What is metaverse real estate?
Metaverse real estate, in simple terms, is the real estate in the digital world. Yes, you heard it right. In the Metaverse, we can construct land and building by embracing creativity to the fullest. We can use that land for multiple uses like engaging, playing, and communicating with others. You can even sell the land and make a profit, just like in the real world.
Most of the same criteria that go into determining the value of an actual piece of real estates, such as location, lot size, existing structures, and demand, also determine the price of virtual real estate. So do you wonder about the evolution of real-estate technology? Keep reading to learn more about it.
Decentraland and sandbox are now the two very popular gamified metaverses that offer real estate. Many popular celebrities and companies have bought the land. You might be wondering, how much does a land cost in the metaverse? Let me give you an idea. Someone has purchased land for $ 450000 to be snoop dogg’s neighbor. Yes, you heard it right! People are investing truckloads of money to buy virtual land. Clearly, the metaverse is the future.
Evolution of real estate technology
The first thing that comes to mind when we think about real estate is the brokers, the listings, the tours, and the many documentation associated with it. The accelerated rate of technological advancement is visible in this sector too.
Technology is trying its best to simplify this tedious, time-consuming process meanwhile, real estate is flourishing in the virtual world. Let us hope that technology will succeed in simplifying the process of real estate.
The technological revolution took its baby steps in real estate with CRM and ERP software. Other software dedicated to property management and operations in real estate also added to the initial technical intervention in this field.
Related article: The Scope of Real Estate Tokenization: Benefits and Use cases
The concept of property- technology or prop-tech further enhanced the industry by merging software and property management. Important improvements brought about by the idea include process automation, virtual property tours, and online transactions. However, PropTech has adapted them for the real estate industry even though many of these characteristics are already used in numerous industries.
Today, the real estate sector, like every other sector, has partnered with AI, AR, VR, and IoT to provide game-changing breakthroughs. The concept has moved beyond resolving challenges in the sector with the appropriate tools and software. Today we have a digital world with immense potential which mimics the real world.
Related article: How can Blockchain Technology be used in Real Estate?
The new normal concept is the metaverse that has let us buy, sell, engage, play, communicate, and become real estate agents for digital property. Technology has come so far. Don’t you think so? Do you wonder why someone would buy land in the digital world? Keep reading to learn about the use cases of real estate metaverse.
Applications of metaverse real estate
Your curiosity about what people do with the virtual piece of land has brought you here, so let us dive right in to know about the use cases.
Advertising
Due to the virtualization of the real world, businesses now have virtual zones to build their brands and content. This is accomplished by acquiring advertising spaces in the Metaverse. Brands are now thinking of new ways to interact with current and potential customers, incorporating the Metaverse. For instance, Wendy’s introduced “Wendyverse” in Meta’s Horizon Worlds, allowing users to interact digitally with the material and perhaps win real-world prizes like free food.
Virtual office
Additionally, businesses and small to medium-sized organizations wishing to build virtual offices are increasingly lured to digital real estate. Users can communicate with one another in virtual workplaces powered by the Metaverse, combining the convenience of their homes with the power of cutting-edge technology.
KPMG, one of the big four accounting firms in the US and Canada, has launched a metaverse collaboration hub similar to a virtual office. According to KPMG, the Metaverse represents a $13 trillion market potential; by 2030, 5 billion people might be using it.
Event Management
Through the acquisition of land slots, the real estate metaverse offers an immense immersive possibility to organize performances or events. It presents a possibility for the innovative use of digital assets.
Does it sound unbelievable? But you need to believe it because a class reunion for 90 Harvard alums was held in the Metaverse, where people from over 28 countries participated. It demonstrates the capabilities of the Metaverse and reminds us that people are really into the digital world of the Metaverse.
The advantages of conducting the event in the Metaverse were the absence of visa requirements, jet lag, and covid-related traveling issues.
Renting
Individuals may become virtual landlords by investing in a digital structure and renting it out to other metaverse users. Managing digital real estate is another major use case from which you may benefit. The digital asset could be leased out for private or professional gatherings.
A quick small piece of information from the headlines will give you an idea of renting and managing in the Metaverse.
“The popular real estate company Avison Young.US stated that it had been chosen by Everyrealm to act as the only leasing agency for their MetaMall on the competitive metaverse platform, Decentraland. It is a digital retail property that is ready to use and is situated in the Fashion District of Decentraland at coordinates 100,18.”
Brokering and flipping
Flipping is purchasing virtual slots of land and then reselling them for a profit. Brokering activity, on the other hand, can be implemented by connecting buyers and sellers of virtual real estate, giving professional advising services, and charging fees for the same.
Do you want to look into one of the pubs of a metaverse owned by a person? Here it is!
This will be the view through your avatar’s eyes, and you can move around, interact with people, and do activities! Buy your land and build your own homes and other buildings. Using a VR Goggle would give a completely immersive experience.
How to buy real estate in the Metaverse
The process for buying a metaverse land is quite similar to that of buying an NFT. A blockchain has a special piece of code that represents your ownership. This code confirms your ownership and possession of or rights to that digital property. You might be thinking if you would need an agent to buy a plot in the metaverse. But no. You can do it yourself. Keep reading to know how.
Related article: How to build a metaverse virtual world?
The steps involved in buying virtual land are given below.
- Configure a virtual wallet:
The first step is registering an account on the platform of choice, followed by linking a digital wallet that will be interconnected to the user’s account. This wallet serves as the safe where all your digital money is safe and secure. You need to carefully choose a wallet that supports multiple blockchains.
- Find a suitable marketplace for purchases:
The consumer can purchase real estate directly from a metaverse platform or a different site. As mentioned above, sandbox and decentraland are the two popular platforms. Connect your wallet to the platform where you intend to buy land.
- Select a plot of land:
After logging in, the user may start looking for virtual pieces of land for sale based on their location, current value, and expected future value.
This is the sandbox map where you can see the different plots you can bid for.
- Authenticate the purchase:
After linking your wallet, buy the respective coins and store them in your wallet. This is like the currency you will give for the land. The platform where the acquired digital property is stored complements the features of the digital wallet. After the real estate transaction is finalized, the virtual plot will be securely kept as a non-fungible token in the digital wallet, which you may access whenever you want.
Why you should consider buying land in Metaverse
Large corporations are setting up shop and purchasing enormous quantities of metaverse land NFTs due to discovering the use cases the Metaverse offers. The land is also in high demand among real estate investors, with NFT real estate business Metaverse Group investing an astounding $2.5 million on 116 LAND parcels in Decentraland in November 2021.
The benefits of real estate in metaverse are:
Quick and easy access to land in metaverse real estate
Real estate powered by the Metaverse is open and accessible to anyone. It overcomes the legal barriers that the conventional real estate market encounters. The simplicity of access enables greater participation and investment in digital real estate.
Absence of bureaucracy.
Easy business establishment in a new format is made possible by digital real estate. Without any paperwork or other tasks essential to the actual world, a virtual landowner is free to manage their property however they see fit.
Metaverse real estate as a potential source of income
When the value of a digital asset increases, digital real estate helps to drive Return On Investment (ROI). Other options for monetizing digital assets include leasing, brokering, reselling, and more. If they are persistent and meticulous, forward-thinking investors can generate significant gains or a regular stream of passive income by careful investment.
Strong potential for scalability
With high interaction rates and a thorough business plan, digital real estate has remarkable development potential. Real estate in the digital realm grows swiftly, and there is always room for improvement. The internet’s nearly unrestricted accessibility to a wider population implies a massive increase in assets in the future.
How to choose the right property in metaverse real estate
The location of virtual land in the Metaverse is crucial, much like with real estate. As major companies like Atari, Samsung, Miller Lite, and Adidas stake their claims on The Sandbox and Decentraland, the value of the plots in these virtual environments keeps rising. Many investors who bought plots close to the plots bought by popular companies have profited greatly. Keeping that in mind, investing in lands close to them would be better.
Further hunt for localities with growth potential. Places where people might possibly assemble will be more valued than those in unremarkable places. Consider land sites adjacent but not within developed areas. These properties are usually not that expensive. Hence you can use that land to construct new buildings and contribute to that area’s development. This will bring up the prices of your property.
Conclusion
Spending money on buying land that doesn’t exist in reality might be a skeptical idea at first. But this is a new trend, and the economy within this industry opens the horizons of possibility in the future. Suppose the shift to digitalization accelerates at the current pace. In that case, there is a high probability for these metaverse technologies to rule the virtual real estate industry in the near future. Keep learning and embrace the technological revolution that we are witnessing.
