As it turns out, some of the world’s most expensive land isn’t even on Earth. So, where is it? It’s in the metaverse!
Real estate is costly, but we’re not talking about Paris, London, or New York. The world’s most expensive land isn’t even on Earth and doesn’t qualify as physical property. It’s in the metaverse!
Investors are currently paying millions of dollars for land that exists within the virtual world. As the race heats up, tech followers, crypto enthusiasts, and prospective metaverse users are snapping up pieces of digital property. Today we’ll discuss the metaverse land rush in more detail and let you know how you can be an early investor.
What is Real Estate in the Metaverse?
Metaverse real estate is basically parcels of land that exist in a virtual world. To put it simply, they’re pixels. Yet, they are much more than digital images. They are programmable virtual reality spaces where people can play games, socialize, attend meetings, see concerts, sell NFTs, and engage in countless other virtual events and activities.
Digital real estate is expected to rise and grow alongside the metaverse. In fact, the metaverse saw its first real estate boom during the last quarter of 2021. This occurred after Facebook officially changed its name to META and made it clear that people are interested in the metaverse. As the concept grows in popularity, metaverse real estate is expected to have an annual compound growth rate (CAGR) of 31.2% from 2022 until 2028.
Why Buy Your Own Piece of the Metaverse?
Much like investing in physical real estate, there are two reasons investors may want to get in on the metaverse. The first and main reason is that you want to use it for a certain purpose, such as building a home to live in or a place to conduct business. But when we say “to live in,” we really mean just having a spot to call your own. Here you’ll be able to display possessions or invite friends over to socialize.
If you remember back to the Internet’s early days before social media, owning land in the metaverse is a lot like having your own web page. Metaverse “houses” will provide a way for people to express their individuality online or hold their collection of unique digital collectibles.
The other reason is a bit riskier, but many people want to own a piece of the metaverse as an investment. Yet, like any other investment, keep in mind that there are no guarantees the land will increase in value. The good news is that we seem to be in a gold rush for metaverse real estate, which is evident in the fact prices have gone up tenfold over the past year. This is driving many people to buy virtual real estate today, hoping it’ll be much more valuable in the future.
How Do You Buy Metaverse Property?
Have you ever purchased an NFT? If so, buying property in the metaverse is essentially the same. You receive a deed of ownership that is an unrepeated chain of code tied to a blockchain. This code certifies that you hold the rights and ownership of that piece of virtual real estate.
Before getting started, the first thing you must do is set up a digital crypto wallet. It’s worth noting that some platforms only accept certain cryptocurrencies for payment, so it’s best to check out what your chosen platform accepts before starting your wallet. Then you simply go to the metaverse platform, where you’ll make the purchase and create an account. Your digital wallet will need to be connected to the platform, and once that’s done, you can choose a parcel and make the purchase.
Similar to real-world land, you can also purchase metaverse real estate from property managers and brokers. However, unlike the real world, metaverse brokers do not require licenses and are not regulated. So be sure to choose a reliable platform!
Where Can I Buy Metaverse Real Estate?
Most real estate in the metaverse is owned by what they call “The Big Four.” These platforms are Sandbox, Decentraland, Cryptovoxels, and Somnium Space. Though these companies own over 250,000 plots, other startups like Everyrealm offer the same services, sometimes at a lower price.
This is the largest platform in the metaverse, as they own nearly 62% of the whole market. On average, real estate properties through Sandbox cost about $11,000 but can go up to over $30,000. You can rent or buy properties that include family homes, art galleries, commercial spaces, and hangout spots.
You’ll enjoy this UGC-voxel platform where everything is built by the users for the users. Sandbox allows creators and players to trade, buy, and sell voxel creations. Basically, the user buys land and then builds an experience which they can monetize through SAND, Sandbox’s utility token, and NFTs.
Many people like this platform because they’ve forged relationships with well-known companies and people like Snoop Dogg, Atari, and Shaun the Sheep.
This is a 3D VR platform that’s built using the Ethereum blockchain. Land parcels use LAND NFTs to signify ownership, which provides the exact coordinates and other parcel details. To buy LAND on Decentraland, users must own MANA tokens, as these are used in the platform to buy in-world services and products.
Many investors like Decentraland because it’s clustered into districts, where each one has specific types of content. As a user, you can explore the areas to view, interact with, and share the content. Setting it up like this enables brands and creators to choose the right district for their target audience.
Are you a Minecraft fan? If so, you’ll find the look of Cryptovoxels familiar, as the world is built using monochrome blocks. Here you can buy land and build on it, even customizing your designs with color, etc., using $COLR tokens.
Cryptovoxels also has built-in tools for chatting, editing, and creating avatars. Brands and creators can purchase digital land to build stores or galleries to showcase their unique collections of services and products. Parcels on this platform cost about $5,000 on average but can go up as high as $10,000 depending on the location and size of the parcel.
4. Somnium Space
Somnium Space virtual world is another platform built entirely by the players. The 3D world allows users to participate in immersive experiences via a mobile device or desktop.
This platform has its virtual land divided into parcels of three sizes: Small, medium, and extra-large. You can also choose if you want roadside or waterfront property to build your space and then import objects and monetize all of your digital assets.
Parcels on Somnium Space cost an average of $11,500 per plot, with the most expensive being sold for $43,100. The good news is that they still have some in the $2,000 to $4,000 range if you just want a small plot.
Possibly one of the best platforms to come from the metaverse is Everyrealm. They hope to do what Netflix did for streaming and what Coinbase did for crypto.
The platform was founded in 2021 and is the real estate arm of Republic, a fintech company. And since its inception, Everyrealm has worked to create a metaverse and NFT innovation and investment platform. They own land in 25 metaverse platforms, manage over 100 metaverse developments, and hold over 3,000 NFTs. Among their top projects are Realm Academy, an online educational institution within Somnium Space, and Fantasy Islands, which are luxury condos found in Sandbox.
Aside from the ones mentioned above, there are dozens of platforms where you can buy your own piece of the metaverse. Check out platforms such as Star Atlas, Aavegotchi, Axie Infinity, and Bit Country.