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The metaverse is a high-tech virtual world with the potential to redefine the digital real estate landscape as we know it. The digital real estate metaverse is a complex concept that can leave even the most tech-savvy investor scratching their head.
In this guide, we explore what the metaverse is. Next, we define the relationship between the metaverse and the real estate market. Finally, we go over a few key metaverse real estate investing strategies.
This post covers:
- Defining the metaverse
- What is the digital real estate metaverse?
- What is the metaverse real estate market?
- How to buy digital real estate
Defining the metaverse
The metaverse, as a concept, is a 3D virtual world where people can live without the restraints of reality. People can work their very real jobs in the metaverse while playing all manner of games. In theory, metaverse technology will evolve far past this point. In fact, users may eventually be empowered to travel to exotic destinations and attend real-world concerts and sporting events — all from the comfort of their own homes.
The metaverse is often associated with virtual reality, but this isn’t an exclusive requirement to experiencing the metaverse.
Facebook (now rebranded to Meta) is heavily involved with the metaverse. But they’re not the sole creators or gatekeepers of it. In fact, it’s possible to be involved with the metaverse without associating with Meta at all. Other notable companies involved with the metaverse include Google and Microsoft.
A report by Brand Essence Market Research states that the metaverse market size is expected to be worth over 700 billion by the year 2027. With that kind of capital flowing around, the metaverse is worth looking into whether it’s “real” or not.
What is the digital real estate metaverse?
The digital real estate metaverse concerns people buying, selling, and designing virtual properties. Similar to NFTs, investors can own unique properties through blockchain code.
What is the metaverse real estate market?
Like much of the metaverse itself, the metaverse real estate market is still in the early stages of development. Despite this, real estate in the metaverse is booming.
Current examples of the digital real estate market include:
- Someone can buy a virtual property in the form of an eight-bedroom mansion next to a celebrity like Snoop Dogg.
- Virtual land can be purchased for development.
- Private property can be bought and customized through blockchain technology.
The virtual world is the limit for how the real estate market can continue to grow in the metaverse. This means there’s no limit to how much metaverse land there is for sale. As of now, the metaverse has very little regulation and governance. As a matter of fact, “laws” in the metaverse only exist as far as cyber laws do.
So, will it be possible to one day be a landlord in the metaverse? Stay tuned.
Which metaverse is best for real estate?
Currently, Sandbox and Decentraland are some of the best places to invest in metaverse land.
Why?
Because they’re easy to use, and, as a result, have a large user base. A large user base means more potential buyers and sellers. However, given the ever-evolving nature of the metaverse, these platforms might not rank as the best for long.
How much is metaverse land?
The norms of the metaverse are developing as it grows. Because of that, it’s difficult to pinpoint the difference between cheap and expensive metaverse land. The prices investors pay range from the low thousands up to the multi-millions.
What we can tell you is that the rules of reality don’t always translate to the metaverse. Property values in the metaverse aren’t affected by weather, proximity to amenities, or structural integrity. Similar to how many NFTs are sold, the seller makes up a value based on the unique exclusivity of the property and sees what it will sell for.
Metaverse land can often be bought and sold for cryptocurrency. This universal form of currency makes it easier for people all over the world to do commerce together.
How to buy digital real estate
Buying digital real estate is easy. After all, the primary reason so many companies are investing in the metaverse is to advertise and sell.
To buy digital real estate, you’ll need to:
1. Select a market
There are plenty of places to choose from when buying virtual real estate in the metaverse. The aforementioned metaverses Sandbox and Decentraland are some of the most popular, alongside Voxels. These companies stand out because of their large user base.
Currently, a high user base is the most important thing to look for in a market. In the metaverse, a large number of users is the one measurement you can trust.
Also: Some markets use their own form of cryptocurrency for purchases. For example, Decentraland uses a token called MANA.
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2. Organize your funds
Because of the use of cryptocurrency and virtual transfers, getting your funds together for metaverse purchases can be a little tricky. So, make sure to put your digital wallet together well in advance of researching which properties you’d like to purchase. This is doubly important if you’re planning to invest via multiple platforms.
Beware: The use of some cryptocurrencies requires transaction fees that might not be apparent until you purchase property or land.
3. Study virtual properties and land
While you must ignore a lot of what applies in the real world, there are still a few ways to judge the value of properties and land in the metaverse.
For example, you can pay attention to what corporations, celebrities, and other sponsors are promoting through the metaverse. Getting in on a newly revealed property or promotion early could be a good investment opportunity. Conversely, you can study property that’s failed to sell and try to determine why.
One out-of-left-field research strategy is to pay attention to gaming culture in relation to the metaverse. You don’t have to be a gamer to understand how online gaming culture influences property trends. For example, you should be aware of whether a property references a specific game, meme, or otherwise hip pop culture icon.
Takeaways
- The metaverse is a virtual world that many technology companies believe will become the next “big thing.”
- The digital real estate metaverse involves buying and selling virtual land.
- There is very little regulation in the metaverse. As a result, it can be difficult to make informed investments.
- When buying digital real estate in the metaverse, you should choose a market, organize your crypto funds, and then research properties and land.
