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- Insights
- Cryptocurrencies
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- White Papers
- Industry
- Geography
The next step of digitalization is metaverse. A technology that is a combination of augmented reality (AR), virtual reality (VR), and video. The virtual universe allows users to work, play, and stay connected with friends in the virtual world through their digital avatars. Metaverse can help you hold conferences and also take a trip around the virtual world. Ever since Facebook announced it would change its name to Meta and focus on building its digital world, interest in metaverse real estate skyrocketed. To buy virtual land or virtual real estate, you need to sign up with a metaverse platform, like Decentraland, The Sandbox, Axie Infinity, and more. All you need to transact in the metaverse is a well-funded digital wallet. So, should you consider buying property in metaverse or not?
Every metaverse platform with virtual real estate has a marketplace where you can go and buy your virtual land. The marketplace format is different for every metaverse platform. One can get information like the parcel's unique coordinates on the metaverse's map, prices, location of your virtual land, business districts, popular sites, roads, and more.
Third-party marketplaces are the best option to buy metaverse real estate. OpenSea and Non-Fungible.com are two of the most popular third-party marketplaces. The main advantage of using a third-party marketplace is all that previously mentioned data. Both also have more than one metaverse platform listed at any given time, so you could buy from multiple platforms or use the data these sites provide to narrow your decision. Just like properties in real life, different plots of virtual real estate will also have different prices depending upon size, locality, and more.
It is hard to believe but metaverse real estate agents do exist. They can help you buy your first virtual land in this new universe. At this time, there is no licensing requirement for metaverse real estate agents. These agents can also help you find a buyer or renter for your virtual land.
There are many benefits of buying property in metaverses like the ability to contextualize custom experiences related to specific geographic locations, from static 3D content to Games, Events, Avatars, and any experience you dare to dream of on your virtual land.
Instead of buying virtual houses and apartments, you can construct virtual commercial spaces like malls, offices, and more. Then what? Rent them out. You will become a commercial landlord to real commercial ventures that you can reach out and touch in the real world.
Appointing a virtual structure designer to help construct a virtual land is much more affordable than in the real world. In metaverse, you don't have to face property inspections, no rules on what you can and can't build, and there are no laws about who can occupy what and for how long. Isn't cool? But when something seems really nice, cool, and attractive there is always risk attached to it.
Though there is a huge fan base of the metaverse, one needs to understand that metaverse real estate is an absolute niche market. Just like developers who do nothing but build mega-mansions, you have to realize that your market is small and may remain that way. There's nothing wrong with that, but your investment strategy should reflect this.
There is always a risk attached to investing in anything. The risk with metaverse real estate is considerable and worse. Unlike with real-world real estate, where you can always fall back on the fact that you still have this piece of land you can touch and stand on, a metaverse property can disappear entirely if the platform fails financially.
