Real estate is prohibitively pricey. That is a harsh reality of life that many of us have had to accept. But this isn't about London, New York, or Paris. It turns out that some of the world's most precious land isn't even on the planet, let alone genuine. Welcome to the metaverse.
Yes, investors are now paying millions of dollars for land that only exists in 3D virtual worlds. With the race heating up, crypto aficionados, tech fans, and potential metaverse users are flocking to buy a piece of digital real estate.
But what exactly is the fuss about? Today, we'll look at what's driving the metaverse land frenzy and how you may get involved.
What Is Metaverse Land?
A metaverse's realm is typically divided into several zones, including plots of free land that users may readily purchase and utilize for a variety of reasons (we will detail those later on).
This land is not only buyable, but also programmable, and it is purchased, sold, or swapped in the form of non-fungible tokens (NFTs) for cryptocurrencies and even fiat. Users can create a variety of experiences, play games, socialize, host events, and more in spaces.
Because they are NFTs, ownership of the land and its digital assets can be easily verified. Every transaction involving metaverse land is a public record. Users can usually buy a plot of metaverse land through the platform's marketplace, or they can use a third-party NFT platform like OpenSea or Raible.
The rise in popularity of the technology has resulted in a large business. The virtual real estate sector is already generating significant revenue for developers and sellers, and the market is only growing.
In 2021, metaverse property prices increased 700%, with the overall market reaching $500 million. As if that weren't enough, the market is predicted to quadruple to $1 billion by 2022.
What Can You Use Virtual Land For?
With virtual land prices reaching all-time highs, many have accused certain investors of stoking a speculative NFT market. But it's not only the price speculation that's fueling the excitement.
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Many other users see land in the metaverse as a way to commercialize virtual assets and experiences that take place within it. Some of the revenue-generating tendencies at work, ranging from renting to managing metaverse land, are as follows:
Users can choose to purchase a parcel of virtual land and resell it for a profit.
Rather than allowing a plot of land remain idle, many users are choosing to develop a variety of virtual properties on it, either for themselves or for other people to utilize. This comprises digital casinos, clubs, concert venues, NFT galleries, and stores, among other things.
Because of the popularity of land NFTs, professional real estate brokers have emerged, who, just like in real life, connect sellers to prospective purchasers or just advise clients on how to effectively manage their metaverse properties.
Areas of the metaverse with high foot traffic are becoming increasingly desirable for advertising purposes. Landowners can rent it out and allow businesses to utilize it to promote their products and services.
Events and Services
The metaverse is intended to amplify existing online experiences while also assisting in the creation of new ones. As a result, metaverse land is being used to host events and run services. Metaverses such as the Sandbox also encourage users to design and share mini-games and instructional activities for the benefit of others in the community.
A number of well-known organizations, including PwC, Sotheby's, JP Morgan, and HSBC, are now using the metaverse to supplement their real-world operations, allowing clients to access services and engage with employees almost as they would in person.
Indeed, a slew of financial players has begun to investigate new ways of doing business in the metaverse, including virtual real estate financing, metaverse mortgages, consumer lending, and crypto transactions.
How To Buy Virtual Land In The Metaverse
The fundamentals of buying and selling virtual land are the same as those of NFT sales. Normally, this shouldn't be too difficult.
To begin, most metaverse systems are easily accessible via a desktop platform, providing interested buyers with a snapshot of available land as well as crucial factors such as location, total area, average prices, utility potential, and transaction history.
Once you've decided on a plot of land, you may either look at the metaverse's own marketplace or a secondary NFT site like OpenSea and Binance NFT. Remember that in the metaverse, the land is traded like NFT, and as such, the deed of ownership is recorded on a blockchain. This protects owners from fraud and other catastrophes.
Before making any purchases, make sure to complete the following steps:
Where Can I Find Virtual Land for Sale?
We already discussed some of the top metaverses that sell land. Before we get into the specifics, keep in mind that most platforms will only have a limited number of parcels available. This contributes to increased digital scarcity and a thriving virtual economy.
Decentraland, for example, is divided into 90,601 equal-sized virtual land plots, whereas the Sandbox is made up of 166464 plots, which the platform refers to as LANDS.
However, there are other additional possibilities accessible, each with regions ideal for a wide range of activities such as advertising, business, services, and events. From a bird's eye view of the present market, you can examine virtual world rankings on OpenSea.