Early speculators, investors from all over the world, real estate agents, and celebrities are buying land that doesn’t physically exist in the real world. They are investing in metaverse real estate, a concept that is hard to wrap our minds around.
So, what exactly is the metaverse? According to CNBC, the metaverse is the next level of the internet. It’s a virtual reality platform where people can play games, connect with friends, attend meetings, and even go to virtual concerts. Ever since Facebook announced it would change its name to Meta and focus on building its own digital world, interest in metaverse real estate skyrocketed. In fact, real estate sales in the metaverse surpassed $500 million in 2021 and could double in 2022, according to data from MetaMetrics Solutions.
If you’re interested in investing in metaverse real estate, it’s important to know what to expect. Here’s answers to some pressing questions regarding the metaverse real estate boom.
How much does it cost virtual land buyers?
The average real estate parcel in The Sandbox metaverse platform was worth $2,620 in mid-October, according to nonfungible.com. A month later, after Facebook’s announcement, that price skyrocketed to $11,042. Republic Realm paid a record $4.3 million for land in the largest metaverse real estate platform, Sandbox. The company is developing 100 islands, called Fantasy Islands, with their own villas and a related market of boats and jet skis. Ninety of the islands sold on the first day for $15,000 each and some are now listed for resale for more than $100,000.
What makes a metaverse real estate project successful?
According to a white paper by SmolBoyz Land, a well-known venture DAO that invests in Metaverse Land projects in the NFT (non-fungible token) ecosystem, the reason why projects like Sandbox, Decentraland, and NFT World have increased in significant volume over the last three months is due to community, utility-based demand, and artwork/design.
Why are people investing in metaverse real estate?
One of the main reasons metaverse real estate investment is rising is because digital real estate has established itself as a legitimate asset class, and the value is increasing exponentially, making it an intriguing investment opportunity to many. Many successful investors feel they are able to discover undervalued land with high potential. Additionally, metaverse real estate allows anyone to be part of a larger ecosystem and able to obtain a share of the metaverse through group ownership.
Furthermore, digital real estate also eliminates complications associated with real-world real estate, including extensive paperwork, land maintenance, and taxes. Additionally, blockchain technology improves security and traceability of land purchases.
While investing in the metaverse may seem like a strange concept today, it wasn’t that long ago when listening to music required a turntable and vinyl record. Virtual real estate properties may someday hold a real-life space in CRE. Now that you know more about why so many people all over the world are investing in the metaverse real estate boom, do you think you’re ready to invest?