The number of property deals in the Metaverse has been making headlines, with record million-dollar transactions reported every other week. The emerging real estate market for these virtual spaces includes virtual concert halls, shopping malls, residences, and monuments. It’s a future herald where digital property owners will be able to collaborate with the brands they hope to see in various iterations of Metaverse. Investors are now flocking to immersive 3D virtual worlds where everyone can create their avatar and interact with others in real-time and buy/sell assets, including real estate.
How to buy property on Metaverse?
To buy property in the virtual world, you need to sign up with a metaverse platform, like Decentraland, The Sandbox, and Axie Infinity. All you need to transact in the Metaverse is a well-funded digital wallet. You can convert your dollars to cryptocurrencies like Ethereum or native currencies of the Metaverse you are dealing in, like MANA or Sandbox, and store them in your digital wallet.
With the help of the complete ecosystem offered by the Metaverse, you can buy, rent, flip, or even sell properties in the digital world, and ownership is through non-fungible tokens (NFTs) title.
Broadly, how does it work?
Virtual world ownership creates functional buildings or businesses for other users to explore and defend. Individual properties in the Metaverse are called virtual packages, and they are 3D blocks of space where developers can overlay objects, design virtual worlds, overlay experiences, create interactions, and more. Coordinates represent lots and virtual estates on the Metaverse platform, where users can socialize using their avatars and decorate their spaces with collectibles. When resources become more valuable, they will sell their land or become developers and build urban living in the Metaverse with residential apartments, hotels, and theaters.
The process of buying and selling Metaverse virtual land (digital real estate) is very similar to buying and selling Bitcoin.
Metaverse Real Estate Investment Fund
In addition to being a virtual owner and developer, Metaverse Group also claims to have created what it calls the first “Metaverse Real Estate Investment Trust (REIT)” that will transfer funds backed by the company’s virtual tokens (NFTs).
MREIT founder Eric Klein said the company would focus on buying, renting, and mining high-traffic virtual real estate in Metaverse. Like traditional real estate investment funds, any profits made by the funds will be returned to token holders through intelligent contracts.
Virtual land in virtual cities
Investors are spending real money to purchase land in a new city that only exists in virtual reality. Buyers in Decentraland can construct whatever they want on their plots. Many people hope to make money by trading goods and services in the virtual world’s cryptocurrency. Investors buy plots of land in virtual worlds, and strong communities boost desirability. A new spin on the American dream is gaining traction.
A new avenue to make big money
When buying virtual land (and even cryptocurrencies or NFT), profits quickly overshadow clarity and the underlying mechanism. Following the coronavirus crisis, many new arrivals to this ecosystem explore a new way to make money. While some are merely trying to reserve large amounts of money earned from cryptocurrencies such as Bitcoin, these factors will undoubtedly contribute to the current bull run for virtual land.
To some, it may appear to be a futile endeavor, but people are spending millions of hours every day in virtual worlds. As long as people believe something is valuable, it will remain helpful. Sure, some short-term investors will be looking to profit from virtual plots hoping that their value will boost. On the other hand, others will want access to these plots because they enjoy them.
Some of the latest developments/stories
Like in the real world, the buyer can resell the virtual piece of land, rent it out, or build virtual property and experiences.
Every realm (erstwhile Republic Realm) is the first company that generated much interest from other investors in buying land. The group acquired more than double the previous land, creating a real estate sales record in the virtual reality world.
The acquisition is a speculative investment, as Metaverse Group intends to host digital fashion events and eventually sell virtual clothing on the 500-square-foot virtual land.
In Decentraland, you can now buy digital lands called Somnium Space, Sandbox, and Upland. You can also purchase land by choosing any metaverse through popular options like The Sandbox, Somnium, Decentraland, and Cryptovoxels.
Satirical stories of mass purchases and asset appreciation have inspired many companies, brokers, and speculators to find a way to enter a virtual world in which large amounts of digital space are turned into non-fungible tokens.