It’s true that real estate has always been a great investment option. Since real estate was “real”, COVID-19 made it a tricky option, forcing investors to choose other ways to get stable passive income. At the same time, the market was actively moving online, where more and more investment options appeared. Metaverse real estate has quickly become an excellent option to add to the investment portfolio for many reasons.
As stated in a recent report by Grand View Research, the global metaverse market revenue was estimated at USD 38.85 billion in 2021 and is suggested to expand at a compound annual growth rate (CAGR) of 39.4% during the forecast period from 2022 to 2030. In addition, The Metaverse real estate market is valued at USD 821.9 Million in 2021 and may reach a value of USD 5953.6 Million by 2028.
As a result, investors started considering investing in virtual lands. Experts say that building a virtual real estate portfolio can be the next big step for investors who aren’t afraid of investing in new technologies.
Real estate in the Metaverse represents a unique land that has a deed and exists in a digital world. Metaverse is like a videogame packed with Augmented Reality (AR) and more social and community elements. The collection of virtual worlds where users can buy virtual lands can be as valuable as land in the real world. That is why these lands have attracted the attention of celebrities like Snoop Dogg and well-known brands.
Why is it Worth Buying Metaverse Real Estate?
Even though technologies like augmented reality and virtual reality have long been here, they gained popularity and increased use only after COVID-19. Providing increased user engagement, satisfaction and a more personalised experience, these technologies are now in high demand in software development.
In addition, AR became the key to Metaverse development and success. Metaverse became famous after social media giant Facebook changed its name to Meta and announced its intention to invest in Metaverse virtual reality space. On that note, make sure to check out the works by Metaverse Insider to stay updated on the happenings in this space!
Even though virtual lands present almost the same opportunities as properties in real life, two key factors make them the preferred option for modern investors:
The virtual property comes in limited supply, just like a real one. Being an owner of virtual land in Metaverse means you own a unique parcel of land in a digital world, and you can do things with it, like building properties that will generate income, like places for public events or leasable buildings.
Each parcel of Metaverse real estate is entirely unique and also secured by an NFT. An NFT is a nun-tangible token which is basically a proof of ownership of digital assets (or real) that can be identified in a wholly unique way. Being an NFT, a virtual land in the Metaverse ensures your ownership and allows owners to resell the property to another user. In addition, no papers need to verify the documents of ownership since all the transactions that happen with this property are automatically recorded, reducing the need for title work.
Metaverse Offers Endless Possibilities
Experts say that investing in Metaverse real estate is a worthy idea. However, when it comes to paying real money for digital lands, it may confuse newcomers. More specifically, you can earn a stable real estate income without owning it. So why anyone would want to know how to buy land in the metaverse? Let’s understand this!
Metaverse offers a vast range of opportunities, and this makes this option an attractive investment way. One of the key reasons investors choose Metaverse is its potential future, while real estate in the real world loses its meaning and revenue streams daily. More and more things will happen with Web3 and blockchain, so the meaning of virtual lands will only increase and metaverse jobs may appear.
For example, Metaverse lands are now widely used by famous brands, organisations, teams, and individuals for public gatherings, events like music concerts, etc. Since it becomes more challenging for people to gather offline, musicians also turn to online properties as a more convenient and cost-efficient alternative.
Travis Scott was among the first to make a concert in the Metaverse, where people could attend it even from their homes and for the same amount of money. Nike has just acquired virtual sneaker company RTFKT, and Gabbana has released the NFT clothing collection, allowing users to dress up their avatars. That is why virtual real estate in the Metaverse can become a perfect platform for users to invest in a new and profitable world, getting a higher profit margin than traditional markets.
How to Buy & Sell Virtual Land?
Even though it seems like a mystery, buying and selling digital assets in the Metaverse isn’t tricky. A larger percentage of metaverse platforms allow users to access them from a desktop computer and a phone, making it straightforward to explore virtual real estate before you will buy one.
Once you’ve chosen the Metaverse and virtual real estate in it, we recommend you research it on one of many third-party reseller platforms, such as OpenSea or NonFungible.com. These platforms are highly useful for new investors, as they show the sales history, if it exists, and allow you to find the seller to make a deal.
In order to buy land in Metaverse, you will also need a digital wallet that will keep your digital assets, including the crypto you’ll be using to make the purchase. It is worth noting that not every wallet works, so before opening one, explore what type your Metaverse accepts.
If you don’t have cryptocurrency in the wallet, you need to buy the amount and type of currency you’ll need for the real estate transaction. For instance, if you want to buy land in Decentraland, the platform accepts MANA coins. If the land is in Sandbox, you will need to buy its own crypto, known as SAND. However, all these coins are freely available in cryptocurrency exchanges.
Investing in Metaverse seems to bring many opportunities for people. Providing users with a chance to join a virtual reality where they can interact with avatars, dress them up and create platforms for concerts, Metaverse real estate is gaining popularity in 2022 and doesn’t seem to stop in upcoming years. Knowing what Metaverse real estate represents and what it can offer can clear the picture and explain why investing in it is a worthy idea.