Experts think that the next step in the development of the internet will be the metaverse. Early speculators, real estate agents, and celebrities are buying land that doesn’t exist in the real world. They’re putting money into metaverse real estate, which most people don’t understand. According to MetaMetrics Solutions, real estate deals in the metaverse were worth more than $500 million in 2021. And the next year is likely to be even better.
Real estate moguls make money in the real world in a number of ways. Such as by collecting rent, renting out space for ads, and selling their buildings as their value goes up. The same is true in the metaverse.
Why should you buy real estate in the Metaverse?
Metaverse real estate gives users a place in the real world where they can meet online friends. People can use their digital land to talk to their friends and play games with them. Creators can make money from the content of their property by charging for access or exchanging their NFTs. Brands can use virtual properties to market services, set up virtual product launches, and give customers specific customer experiences.
Real estate investors can make money by buying and selling these pieces of digital property. Just like in the real world, real-world properties can be built, sold, or rented in the metaverse. Metaverse real estate could definitely be used in a lot of different ways.
What is digital real estate when it comes to the Metaverse?
Users can talk to each other in the metaverse using 3D avatars. They can also use human-computer interactions (HCI) to share information with the 3D environment around them.
Parcels are digital pieces of real estate that can be found in the virtual worlds of the Metaverse. They can be bought or sold with the platform’s currency. For instance, you could use the cryptocurrency token MANA to buy land on Decentraland.
Investors have spent millions of dollars to buy land in the Metaverse. There is no doubt that technology has changed the real estate business. There are now mortgage providers and lenders who work with people who want to buy digital real estate. This is a big deal.
How to Build a Digital Real Estate Market in the Metaverse
Most of the time, business names are the first to show up in the metaverse. There are millions of dollars worth of real estate in the metaverse.
Companies like Republic Realm, which recently raised $60 million led by Andreessen Horowitz and started a new real estate division, and Tokens.com are spending millions of dollars on artificially limited plots of virtual property.
- Tokens.com has bought a prime spot on Decentraland’s Fashion Street, which it plans to turn into a metaverse virtual store for high-end businesses. Some companies, like Nike or Gucci, are buying real estate in virtual worlds and building stores for meta-consumers. Other companies are holding on to their virtual world plots of land in the hopes that they will become the next big thing in technology.
- As more and more land becomes available to buy, there is a big push to rethink how real-world activities can be used in digital real estate.
Also there are other methods too:
- Many companies, like real-world developers, want to make luxury virtual homes for tech-savvy and ultra-rich people. They also want to invest in commercial spaces for brand activations, retail complexes, and entertainment venues, all within rival metaverse platforms that most people probably won’t use for a long time, if at all. Even though it is made of code, the land is not limitless because Decentraland, Somnium, and other organizations limit the supply.
- Some business owners think that in the future, they will be able to rent out storefronts to businesses that want to sell things without having to take care of any real estate. If people want their virtual condos to be seen in the metaverse, they could rent them from the people who own the land.
The Future of Real Estate in the Metaverse
Putting money aside, you might wonder what businesses and people will really do with their virtual land.
As an example, the property that the Metaverse Group bought is in the fashion district of Decentraland. According to the buyer, the space will be used to host digital fashion shows and sell virtual clothes for avatars. This is yet another area where the metaverse could grow.
Even though businesses and capitalists have an effect on this market, not all real estate in the metaverse will cost you a lot of money. But what could you get if you bought virtual land? When you buy a property in the real world, you get something you can show off, a place to hang out with friends and family, and a place to call home.
Even though virtual property doesn’t give you a physical place to live, there are some similarities to real property. If you are looking for virtual real estate, you can buy a piece of land on which to build a house. You could also choose a property that has already been built and that you like. One could finish it by adding more digital things. People could be invited to parties in the virtual house. One could also drop in on other people’s virtual homes.
Unlike investing in real estate, where the property you buy will always exist, digital land in the metaverse will disappear if the platform you bought it from fails and shuts down.
Also, it’s important to keep in mind how volatile the cryptocurrency used to buy and sell real estate in the metaverse can be at any given time. The value of the property you own in the metaverse will change in the same way that the value of your digital money does.
Before you make any decisions about money, you should learn as much as you can about the metaverse from a certified Metaverse Development Company, like Suffescom Solution INC. Know all the risks and problems you might face, and weigh them against the possible benefits of moving forward. The best time to make a decision is after you have carefully thought about all the pros and cons.