ReSET Blog
Blog · August 24, 2022 · AUTHOR: Darwin Pelea

What Is Metaverse Real Estate?

Real estate in the Metaverse is a virtual world that consists of pixels. But it is more than that. A virtual reality platform allows users to create programmable spaces where they can socialize, play games, conduct meetings, sell NFTs, attend virtual concerts, and participate in countless other virtual activities.

Metaverse real estate is a new type of digital property that exists in virtual worlds. You can use this property for various purposes, such as gaming, social networking, and business. Metaverse real estate can be bought, sold, or leased like any other property type.

In addition to growing and expanding digital real estate, the Metaverse is expected to grow and develop. Since Facebook changed its name to META and indicated a focused interest in the Metaverse in the last quarter of 2021, there has been a real estate boom in the Metaverse. From 2022 to 2028, metaverse real estate value is predicted to grow at a CAGR of 31.2% as its popularity continues.

Why should you invest in metaverse digital real estate?

  • The first reason is usually the safest: you will need it for something specific, such as constructing a house or a company location, in which case you are maximizing the use of it. It is essential to understand that when it comes to "dwelling" in the Metaverse, we mean having your place to call home, where you can display your belongings and invite friends over. Before everyone switched to social networks during the early days of the internet, it was widespread to have one's website.

  • It is anticipated that consumers will benefit significantly from metaverse homes by displaying their personalities digitally or by storing their unique collections of digital collectibles, enabling them to deliver the best experience for their consumers. Therefore, it is less hazardous to own metaverse land as you will most likely receive what you want.

  • The second reason is to invest, but this is where things get dicey because, as with any investment, there is no guarantee that the price will rise. The average value of metaverse digital real estate has soared tenfold in the last year, suggesting a gold rush is underway. People are currently buying digital land because they anticipate that it will become much more profitable in the long run as more people get interested. Among those who purchase to rent, the private rental market is burgeoning.

Is it safe to buy digital real estate in the Metaverse?

In addition to cryptocurrency and NFTs, digital property is a substantial investment, so this is one of the most important considerations - especially if you intend to invest quite a bit. Many marketplaces are unregulated, so if you get scammed or lose your money, you can find yourself in a bind if something terrible happens. You'll unlikely be cheated, but technical factors make the situation even more dangerous since Bitcoins and NFTs are used for payments. Therefore, you must be confident your password won't be compromised.

As all virtual real estate is secured on blockchain technology with smart contracts, there is a minimal risk someone will steal it or renege on your payments if you remember the passcode. Modern cryptographic security controls may become outdated in the future. If you plan on making a substantial, long-term commitment, this might not be a concern at the moment but should be considered.

What Are Metaverse Property Buying Options

There are several ways to buy property in the Metaverse.

Direct marketplace on your platform

There are many metaverse platforms where you can purchase virtual real estate, but the marketplace format differs from platform to platform when purchasing virtual properties. You can buy virtual real estate on any platform that offers virtual properties. On the Metaverse's map, you will find information about the parcels' coordinates, as well as information about business districts, famous places, roads, and so on.

Utilize third-party marketplaces

A third-party marketplace is one of the most popular places to buy metaverse real estate. Non-Fungible.com and OpenSea are the two most popular third-party marketplaces. The main advantage of these marketplaces is access to the previously described data. At any given time, you can make a purchase from more than one metaverse platform on both sites at the same time by using the information they provide to narrow your choice. Virtual property plots can also be priced differently depending on their size, location, etc.

Using a metaverse agent to buy property

In a metaverse, there are real estate agents. These agents can assist you with buying your first virtual land. For now, metaverse real estate agents are not required to have a license. Additionally, these agents can assist in finding buyers or renters for your virtual land.

What are some popular virtual world platforms?

Real estate has already changed since cryptocurrency came into existence. By 2020, both physical and virtual worlds will have the same social aspects. It's already in the real estate market. In addition, many platforms are selling real estate through the Metaverse, including Sandbox, Cryptovoxels, and others.

A new virtual world modeled after city life, Decentraland, is the most popular. The field is seeing some great things, despite some laggards. Essentially, a concept known as the Omniverse combines the online and the real world. It allows fungibles to become non-fungible.

It allows users to purchase and sell physical objects, a massive advantage for the real estate market. By utilizing this technology, users have access to the ability to buy and sell real-world items. We can expect that the technology will be used for commerce in the future, as well as for social networking via virtual worlds in the future.

As technology advances, the real world changes. As the Omniverse is merged at multiple points, the real and online worlds will become one. As the Omniverse develops, it will become where commerce takes place. With the development of technology, a more personalized, accessible, and ever-changing experience will be possible.

What are the benefits of Metaverse Real Estate?

Investing in the Metaverse has multiple benefits:

  • Investors can use digital land appreciation in the Metaverse to earn income.

  • Metaverse provides investors with the option of renting out their properties.

  • Input costs are considerably lower than real estate in the real world.

Companies like Facebook (now Meta), BMW, and Disney are already emerging as key players in the Metaverse and will become more prevalent over the coming years. The Metaverse's most significant advantage may be its ability to enable individuals to be sovereign; they will own all their virtual assets. It is in contrast to the current system, in which digital platforms such as YouTube pay only a certain amount of money to users who generate income through those platforms.

Final Thoughts:

Several major companies, including Microsoft and Facebook, are betting that the Metaverse will take over the internet in the long run. As the internet has done in the last two decades, digital real estate will become increasingly fascinating and valuable to those who prove it. From large corporations to social influencers, the internet has become an effective means of cultivating consumers and developing innovative products.

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