2022-12-20 06:19:17

Analysing The Virtual Real Estate Boom in Metaverse

Ever imagined owning a piece of land next to your favourite celebrity and that too at the comfort of your own home? Yes! The metaverse has made that a reality. You can purchase real estate in a virtual world and fill it with interactive experiences like events, concerts, 3D objects, games and a marketplace to sell assets such as your own NFT creations.

Be it the individuals who are well aware of the metaverse and know that this is something that provides a virtual world to live, work and play to the ones who are new to this are slowly and gradually getting acquainted with investing on this profitable platform.

Moreover, 2023 is ready to put up a meta real mansion, a real-life Miami home with an identical virtual mansion in the metaverse. That means the purchaser of the home will also acquire ownership rights to the NFT asset. This very well could be the tipping point for adopting NFTs in the real world.

There are multiple set of questions one’s mind ponders over before thinking about a purchase in metaverse real estate.

Most frequent ones are -

1. What is metaverse real estate?
2. How much is metaverse real estate worth?
3. Statistics on metaverse real estate?
4. Risks and challenges of investing in the metaverse?

Metaverse Real Estate ?

Metaverse real estate refers to a parcel of land in virtual world. It basically comprise digital images in pixels but in retrospect is more than that. It incorporates virtual places where individuals can perform various activities. In recent year a notable growth has been witnessed in metaverse real estate leading to virtual real estate growing at a fast pace. 2021 has been a year with a boom in metaverse real estate investment. Moreover, value of metaverse real estate is forecasted to have a CAGR of 31.2% from 2022 to 2028.

Worth of metaverse real estate?

There has been a positive response when it comes to aquring property in digital format i.emetaverse. Decentraland held land auction at terraform event in December 2017, a parcel of land costing a mere $20.

Many companies have been heavily investing in virtual land due to a positive growth in metaverse real estate. In November, republic realm broke records after purchasing property in the sandbox for a whopping price of $4.3 million.

Due to an increase in interest of individuals and returns in metaverse real estate, the cost is now on a rise. Digital land usually sells from $6000-$100,000 but some are reportedly being sold at a much higher price.One of the biggest sales of the past year is a property adjacent to Snoop Dogg’s in The Sandbox. An anonymous buyer purportedly bought it for $ 450,000.

Statistics on metaverse real estate?

Before hopping onto buying property in the metaverse, one must go through the statistics and a data driven study. Some latest statistics of the industry have been pinned down. Go over these numbers to access if metaverse real estate is worthwhile investing.

1. The average parcel price in major metaverse platforms has increased from $1265 to $12,684
2. A research study that put the market size value of the metaverse at $47.69 billion in 2020 forecasts the same market to have a revenue of $828.95 billion in 2028.
3. Metaverse real estate investments come from only about 25,000 individual crypto wallets

As seen from the above data, the early buyers are bound to have more positive outcome by virtual investments but one must not forget about this digital world being new and still in the stage of development. The numbers may be tempting but one must go beyond statistics before making a decision.

Risks and challenges of investing in metaverse ?

Tremendous growth is expected in coming years in metaverse real estate market but still it takes time to trust a digitalised aspect due to multi-faceted reasons. The real estate being sold online is new to the industry and in itself is a new industry. Therefore, a wise investment is required. 

The risks involved could be if metaverse platform goes offline permanently, all the purchased land assets would become non- existent.Other challenge is that of valuation. Thus, always a doubt of how to assign value to something whose future value can’t be quantified.

Among all the questions answered above, the biggest one most probably would be –

How to purchase real estate in metaverse??

There lies immense opportune in buying metaverse real estate of which folks are unaware of. The markets which constitute an expertise inmetaverse real estate include Decentraland, Worldwide web, Treeverse, the sandbox, and much more.

4 steps to buying real estate in metaverse - 

Open an exchange

Open an exchange to deposit your local funds and buy crypto. Exchanges provide tutorials and step-by-step instructions on how to fund your exchange, so don't feel intimidated if this is your first time using one. Binance, Gemini, Kucoin, and Coinbase are all trusted exchanges.

Create a digital wallet 

Create a wallet for your crypto that will allow you to purchase the real estate you are interested in. The most popular is MetaMask for the Chrome browser. However, you can look into Coinbase Wallet or Fortmatic.

Research land

Decide which platform you want to use to purchase real estate and create an account by connecting your wallet. Right now a popular platform is A Sandbox where brands, businesses, and celebrities like Snoop Dogg and Paris Hilton have their land.however, Decentraland, Voxels, Worldwide Webb and Treeverse are other options.

Create a marketplace account to buy NFTs

In many cases, you will have to purchase land on the secondary market. It's a good idea to create an OpenSea.io account to do so by connecting your Chrome browser wallet before you go shopping.

Hence, Before you make any investment decision, learn as much as you can about the metaverse. Understand all the risks and challenges and weigh them against the potential benefits. Only after you have thoroughly researched all the pros and cons should you make your decision