Metaverse is around since the early 1990s, yet, the concept is very much new to the people. Metaverse is a 3-dimensional virtual space, where the user can create their avatars to explore the space. Furthermore, the user can trade land, buildings, and other digital assets in the metaverse.
Investing in these digital assets can be risky, but at the same, it can provide a high return. Likewise, with other investments, you must do some research before investing in these assets. This article will help you understand the metaverse in real estate, where to buy it, and the latest trends in the metaverse. Shall we get started?
What is Metaverse in Real Estate?
The metaverse is a virtual 3D space that users can explore using avatars. The combination of Augmented Reality (AR) and Virtual Reality (VR) provides a real-life experience to the user. The user can also exchange information with other users.
In addition, many investors today are interested in investing money in the virtual land of the metaverse. The digital land segments in the metaverse are known as parcels. You can buy or sell parcels and other assets only by using the metaverse currency.
The concept of buying digital land has reached another level today, with investors investing millions of dollars in purchasing metaverse land. Surprisingly, some people even provide mortgages to other people for buying land in the metaverse.
Platforms You Can Use to Buy Real Estate in Metaverse:
Due to the increasing popularity of the metaverse, many platforms that help in purchasing or selling land in the metaverse have emerged over the years. Even though there are many platforms, however, the majority of the land is owned by the big four. We have listed these four platforms for you.
Decentraland is the virtual world, congregated in districts, with each district having its unique content. The users of this virtual world can use these areas for interacting or sharing information. This Ethereum-based virtual world is used by many brands and creators, as it helps them to find a targeted audience for their content.
In addition, to purchase land in this virtual world, the user needs MANA tokens. These tokens are used by the user to buy in-world products and services.
Currently, the land of the metaverse is dominated by the Sandbox, having nearly 62% of the total land of the whole market. If you are interested in purchasing land in Sandbox, the average lot costs around $11,000 and $20,000 to 30,000 for the premium lot.
Sandbox is a user-generated content voxel platform, meaning everything here is built by the user and for the user. The creators and players can purchase, sell and trade voxel creations. The creators make experiences on purchased land and monetize it using NFTs and SAND, the currency of Sandbox.
The design of the Cyptovoxels is very similar to Minecraft. If you are a Minecraft player that this platform is definitely for you. As a user, you can buy land and make different content by using monochrome blocks. Furthermore, for purchasing customized colors and elements for blocks, you need to use $COLR tokens
Various creators and brands buy land on this platform to showcase their products, services, and collections. At present, a parcel on Cryptovoxels costs between $5,000 and $10,000, which is less than Sandbox.
Somnium blockchain is built entirely by the users and is accessible through both desktop and mobile phones. In addition, the parcels of the land are categorized into three classes: small, medium, and large. As a user, you also get to decide the location of the parcel, whether you want it near water or road.
Additionally, if you want to buy land or in-built assets you need CUBE tokens, the currency of the Somnium. The price of the land on the Somnium ranges according to the size of the parcel. The small parcel’s cost range between $2,000 and $4,000.
Top Metaverse Real Estate Trends in 2022:
The top digital trends of this year are as follows:
The volatile nature of the metaverse real estate market will continue to fluctuate due to industry movements or any crucial statement of the important players. Any fluctuation in meta shares can cause the market to shift. It happened at the beginning of this year when meta shares declined, and the market was also expected to go down.
Some of the early movers towards investment in digital real estate are dedicated metaverse investment firms and large organizations. It is expected that the investment of other large firms and organizations will continue in 2022.
Events on Metaverse Land:
Many events are created by various metaverse platforms and if you want to know about these events, you can check event calendars that are issued by these metaverse platforms. These events can fluctuate the market, as investing nature of people can get affected by the plans or products shown in these events.
How to Choose Land in Metaverse?
When buying a property in real life, what is the most important thing that affects your decision? The answer is location. Just like reality, the metaverse location of the parcel also matters. Over the years, the value of the parcels that were adjacent to the brands such as Addidas, Atari, Samsung, Miller Lite, etc. has increased. These types of parcels can help you in gaining high returns on investments.
The other areas worth investing in are those that have the potential for development. Invest in those areas that you think will provide the best returns in the future. For this, you can invest in that parcels that are near the developed areas but not in the developed areas. It can help you save money. Build on these properties and then just wait for the right time for the prices to go up.
Even though, the concept of the metaverse is around since the early 90s, it is still quite new for many people. Many large organizations are investing in metaverse real estate, as a result, many people are also interested in it. Investing in metaverse real estate is a good idea if you have enough funds for it.
However, the risk that follows this investment is very high. The market can shift at any time due to any reason. You can lose your money in a fraction of a second. Try to learn as much as possible about metaverse real estate investments, before investing. It can help you understand the risks that involve real estate investment. After researching thoroughly, take your investment decision.