Thursday, 17 February, 2022 UTC
Summary
11 min read
The development of the metaverses has created a new real estate market. Now, those with the money and courage can purchase digital lots and buildings, from concert venues and malls to homes and monuments. Today we will talk about which companies sell virtual real estate, what opportunities this opens up for owners, and why you should start investing in virtual real estate today.
Where Do Things Currently Stand in the Virtual Real Estate Market?
Nowadays, many companies, including Meta, are creating their metaverses, hoping that people will soon gather there in the form of digital avatars to play, shop and interact with ads. One of the first to enter this business is the Metaverse Group, which operates a virtual world called Decentraland.
Late last year, a report surfaced that the parent company of the Metaverse Group announced that “a site in the heart of Decentraland’s Fashion Street district” has been sold for a record $2.5 million. The new owner will be able to make a good profit if Louis Vuitton wants to open a store there. The transaction did not involve real money. Digital real estate was sold for 618 thousand MANA, which is the cryptocurrency used in Decentraland.
All of this can be puzzling: who will pay real money for the right to own a part of the virtual world that has not yet been completed and will never exist in reality? However, many people have been investing millions in digital assets such as NFTs and cryptocurrencies in recent years, expecting others to pay even more for them in the future. The same expectations are placed on virtual real estate. And what is most tempting is the opportunity to earn money by renting it out or selling advertising.”
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Where Can I Find Virtual Land for Sale?
In the previous section, we mention Decentraland, which is one of the most popular sites, which includes a huge number of territories where advertising materials, events, and other content from brands of early fame are located. Of course, ordinary users can also own territories, although the commercialization of the sphere is on the face. Each lot offers a LAND NFT token. There are many other alternatives such as:
- Sandbox — Lots on Sandbox are also marked as LAND and are sold on the OpenSea marketplace. Clicking on a specific lot will open information about it, a visual preview, and information about the owner.
- CryptoVoxels — This is a digital world that is like a city without any boundaries. On the vendor’s website, you can explore all of the sites the town has to offer, and you will have the ability to explore the real estate through your very own avatar.
- Somnium Space — It is best to think of real estate from this vendor as a metaverse inside a metaverse. It offers a full-fledge Unity SDK to develop games and support virtual reality.
Why Should You Buy Digital Land?
In 2021, according to MetaMetrics Solutions, sales in Metaverse reached $501 million. In January 2022 alone, sales amounted to $85 million. At this rate, by the end of the year, they could approach $1 billion. Virtual reality has gone far beyond the needs of the gaming world. Many companies have begun to actively use it to run their business. For example, the real estate agency eXp Realty was one of the first to open an international office in virtual reality. Their employees gathered there in the form of avatars. With the onset of the pandemic, even more companies switched to remote work — huge offices were empty, and real estate prices fell. It is not known when the pandemic will end, but it is already clear that we will not return to the old way of life. This forced investors to take a closer look at the new reality. In the first six months of 2021, digital property prices jumped 3,000 percent.
Another push is the statements of tech giants. Meta (ex-Facebook) and Microsoft have already announced their plans to create a metaverse. They are ready to invest billions in these products. Apple is also betting big on an augmented reality headset that could become the company’s staple, displacing the iPhone in the next decade. The annual income of the metaverse sector may soon reach $1 trillion. Specialists made this conclusion of Grayscale Investments.
In Which Metaverse Should You Buy Real Estate?
Everything depends on your personal preferences. For example, there’s Star Atlas which allows you to travel far beyond the earth. There are no boundaries here; explore the whole universe and its possibilities. You can take your spaceship and dive deep into a unique metaverse, join a faction or create your own and create your world. ATLAS is the metaverse token that powers this unique world. It runs on the Solana metaverse blockchain. With ATLAS, you can discover exciting new perspectives and opportunities. The Solana metaverse blockchain is fast, secure, and reliable but more scalable and less expensive than the Ethereum blockchain.
If you’re looking to make some money selling certain products, then the Enjin platform allows users to create, store and sell virtual goods. First, developers must value their virtual goods by locking the ENJ token (Metaverse token) in a smart contract. Players will then be able to sell or use the virtual goods in accordance with the terms of the contract. After the sale of the goods, the seller receives ENJ.
While many metaverses already exist today, many of them are glitchy and have little consumer confidence in terms of potential growth. They also have to compete with industry giants like Facebook and Microsoft. Therefore, if you are looking to develop your own Metaverse, metaverse development services can help you solve a lot of problems preventing other metaverses from succeeding.
How Can You Make Money From Buying Virtual Real Estate?
Since owning land in the Metaverse is similar to owning property in the real world, you can make money using the same methods. For example, you can sell your land. Data from NonFungible.com on Decentraland sales goes back to 2017, when the native Decentraland currency, a token called MANA, was worth pennies on today’s dollar. A plot of land sold for the $111.52 equivalent in MANA on Dec. 17, 2017. That same lot on Dec. 16, 2021, brought $13,703.49. Imagine if you’d bought that lot years ago and rented it out! That’s a huge gain on your return.
Also, you can find commercial tenants and rent out your property, thereby creating an income stream from a piece of virtual real estate. For example, there’s a popular game called Second Life that joined the Metaverse, and they generally rent to individuals. Still, the beauty of the modern vision of the Metaverse is that a lot of commercial players are also getting into the mix.
Rather than just renting virtual houses and apartments, you could construct virtual malls, virtual offices, or virtual event space and rent that out. Companies offering custom virtual reality solutions can help you create anything you need. Suddenly, you’re a commercial landlord to real commercial ventures that you can reach out and touch in the real world. Brands are getting into the Metaverse big time, and they need the space to spread their messages to anyone who happens to be nearby.
Start Cashing in on VR Real Estate Today
If you are looking to get in on all of the action taking place in the Metaverse and capitalize on all of the money-making opportunities, you will need to partner with a trusted software development company that can create the solutions you need. Skywell Software has extensive experience developing VR solutions for some of the world’s leading brands. Contact us today to learn more about how we can help you.
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https://medium.com/media/1e1f2ee7654748bb938735cbca6f0fd3/hrefThinking About Buying Virtual Land? Virtual Real Estate Investing in the Metaverse is the Way to Go was originally published in AR/VR Journey: Augmented & Virtual Reality Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.