Real estate is outrageously costly. That is a harsh reality that we all have come to accept. But this isn’t about land in any of the big cities you’re thinking of. Some of the world’s most valuable land isn’t even on the planet, let alone real. Welcome to the metaverse where people invest millions of dollars for 3D virtual world land. With the race heating up, crypto enthusiasts, tech followers, and potential metaverse users are flocking to buy a piece of digital real estate. But what exactly is the fuss about?
How is metaverse real estate different from real-world real estate?
A metaverse’s space is divided into different areas, including plots of free land that users can buy and use for a variety of purposes. This land is not only buyable, but also programmable, and it is purchased, sold, or exchanged in the form of non-fungible tokens (NFTs) for cryptocurrency and even fiat. Users can create a variety of experiences, play games, socialise, host events, and more in these spaces. Because they are NFTs, ownership of the land and its digital assets can be easily proven. All transactions involving metaverse land are open to the public. Users can typically buy a plot of metaverse land through the platform’s marketplace – or through a third-party NFT platform. Those who got in early have already made significant returns – at least on paper. Less than a year ago, the average price for the smallest plot of land available for purchase on Decentraland or the Sandbox, two of the most popular metaverse platforms, was less than $1,000. It is currently worth around $13,000.00.
Land plots in the virtual real estate market appear to be strange investments. In many ways, they’re similar to real-world real estate. To begin, virtual property, like real property, is in short supply. Owning virtual real estate means you have a unique parcel of land in a metaverse world that you can use to create income-generating properties such as leasable buildings or interactive venues that charge admission or promote a brand. Second, each parcel of metaverse real estate is completely unique and is protected by a non-fungible token (NFT). An NFT is essentially a deed or proof of ownership for something digital (or real) that can be uniquely identified. Your NFT for virtual real estate ensures your ownership and allows you to resell the property to another owner. It also automatically records all transactions for that property, eliminating the need for title work.
How can you buy and sell land in the metaverse?
Buying and selling digital assets in the metaverse is simple. Most metaverse platforms are easily accessible via desktop computer, making it very easy to inspect virtual real estate before making a purchase decision.
Once you’ve decided on a piece of virtual real estate, you can conduct research on one of many third-party reseller platforms, such as OpenSea.io or NonFungible.com. These sites can show you sales history if it exists, as well as allow you to do the same for nearby properties that might serve as good comparables. You must create a digital wallet to store your digital assets, including the cryptocurrency you will use to make your purchase. The wallet you use will be determined by the metaverse platform you use.
In comparison to a real-world real estate transaction, the purchase is almost anticlimactic. Once you have your digital money in your digital wallet, all you have to do is go to the platform’s marketplace or a third-party site and click the buy button. The platform verifies the transaction in a few seconds, which includes ensuring that your wallet has enough currency and that the property can be legally conveyed to you. When those checks are completed, the money leaves your wallet and an NFT representing your purchase is deposited. An anonymous identifier linked to your wallet and unique to you is recorded as the new owner of the property.
It works in the exact opposite way to selling virtual property. You’ll list your property for sale, and someone else will do the clicking and verification before their crypto is exchanged for an NFT, and your wallet will exchange one NFT for a pile of crypto – hopefully at a profit.
Whatever you do, keep in mind that metaverse investments, just like any other investment, can be risky, and there is a possibility for you to make a profit or a loss. Real estate is a solid investment, and real estate investment in the metaverse can turn out to be a great decision if you make wise financial decisions. The best way to make informed decisions is to fully understand the ins and outs of buying land in the metaverse. If you want to learn more about virtual property investments, you can click here.
