No one could have believed that we would own virtual pieces of land and other real estates five years ago. The metaverse and NFTs witnessed a sporadic rise in 2021, with investors pumping millions of dollars on virtual real estate and different tokens.
Even as we wait for the metaverse to be fully formed, several celebrities like Snoop Dog have been pumping millions of dollars into virtual real estate. Therefore, we can’t ignore that the metaverse will continue to grow in these coming years and will likely witness a boom.
Therefore, you should get prepared, source funds, and, if possible, get some property. This article is here to help.
Real Estate in the Metaverse
There are several real properties you can invest in when it comes to the metaverse. Platforms such as Decentraland have land and property on several districts such as Crypto Valley, Dragon City, District X, Fashion Street, Aetherian City, and many more. Here are some of the things that you can buy:
1. Land
The land is the highest-selling property in the metaverse. We have witnessed a land rush in the past few months since Facebook rebranded to Meta. Many people have bought pieces of land in cyberspace for millions of dollars, some even convinced that they will find gold, especially on the metaverse hills.
The land will definitely increase in value when demand rises. However, most experts have termed the land rush an illusion, with some arguing that platforms such as Decentraland are using marketing gimmicks to increase sales. Well, we will find out pretty soon.
2. Commercial Spaces
The metaverse aims to replicate our world on the virtual world. Therefore, it shouldn’t come as a shocker knowing that several commercial spaces are on sale in the metaverse. These are located in highly lucrative regions, such as our world, and are mainly obtained for commercial purposes.
It is believed that investors will set up shops, restaurants, and other business facilities once the metaverse is complete. We hope to see popular brands such as Channel and Louis Vuitton owning shops in the metaverse, making it more convenient to obtain goods and get them delivered in the real world.
3. Family Homes
You can also choose to buy some land on the metaverse and use it to set up your family home. You will have to stay somewhere while in the virtual world, which calls for a home. However, note that the price of land is dependent on the region as more lucrative places such as Decentraland’s Vegas City cost more.
You can also buy land and build an art gallery where you will be selling your NFTs. This is one of the reasons why several artists and musicians are pumping millions of dollars into virtual spaces. Snoop Dogg, for example, is building his own virtual space on the metaverse known as Snoopverse. He recently sold a price of land to a fan known as P-Ape for a staggering $450,000, which goes to show how lucrative land is on the metaverse. Others also need land to create hangout joints since people will have to hang out in the virtual world.
The metaverse, therefore, promises to allow us to access our world virtually. To help you become a virtual real estate owner, we will look at some buying tips before deciding to invest. We hope you will be in a better position by the end of this discussion. Let’s explore.
Tips on Investing in the Metaverse
It would help if you made several considerations before investing in the metaverse. One should also answer some questions before spending hard-earned money. Here are some tips:
1. Ask Yourself What You Would Like to Achieve
You shouldn’t invest blindly in the metaverse because it is an exciting concept. Have you asked yourself some of the things you would like to achieve with the metaverse? Do you want to set up a business, own a home, sell your art, establish an art gallery, rent out your property or buy land and hold? By answering this question, you will know the asset to go for.
2. Identify the Asset that Suits You
You will only know the asset you need to buy by answering the first question. If you would like to be a homeowner, buying land in a residential place would suit you. However, if your main aim is to conduct business, settle for a commercial plot.
If you intend to buy an asset and hold it, we highly recommend land as it is highly appreciated. If you are an artist trying to sell your art, you can invest in ad spaces to market yourself. All in all, make sure that you know your purpose since it will help you identify the right asset for you.
3. What’s the ROI?
We acquire property or assets to make some profit in the long run, either through renting out, selling or subdividing it onto plots and leasing out. Therefore, please do not spend your hard-earned cash or life savings on a piece of land on the metaverse you won’t gain from it. This means that you should consider the location of the real estate. Are there amenities around? Who are your neighbors? Is the place accessible? What are some of the infrastructure surrounding it? Only by asking and answering such questions will you know that you are making the right choice.
If possible, also perform a risk analysis that will tell you whether you are likely to lose your money or not.
4. Development
This applies to people who purchase real estate. You should know what you intend to do with the land. You don’t have to develop it if you want to buy and hold it. However, if you have a vision for the land, you need to figure out how to develop it before its acquisition. Do you want to subdivide the land into smaller plots and lease them out? Do you want to create office buildings, supermarkets, or recreational facilities? Do you fancy a mall? All in all, make sure that you have a clear development plan after buying a piece of real estate.
5. Timing
This is one of the most important things to do before buying land or any real estate in the metaverse. Make sure that your timing is right. You should avoid acquiring property whenever there is a rush unless you are sure that it will last longer and prices will continue going up since only then will you make a profit. Take some time to analyze the market, and if possible, obtain expert advice before you commit millions into metaverse property.
Buying a given piece of land at a lower price and selling it when the demand is high guarantees you a serious profit margin.
Best Platforms to Buy Real Estates in the Metaverse.
You can purchase land directly on metaverse platforms or indirectly through third-party platforms. However, the former comes with several advantages as you will be able to view the amenities surrounding your land and even assess your neighbors. Here are some of the platforms you can use:
1. Sandbox
This is one of the most popular platforms for those looking to buy land or real estate in the metaverse. Created in 2012, it has risen in popularity and currently allows for buying, selling, and renting virtual land.
You will need $SAND, which is its official currency, to buy or rent a piece of land. In fact, it is required for all the transactions happening in the Sandbox’s marketplace, especially the acquisition of LAND and ASSETS.
To purchase land, visit the Sandbox LAND sales found on the Map of the Sandbox Website. Here, you will get the sale dates which are often announced weeks before to allow you to prepare, both financially and emotionally. However, this platform also allows you to purchase land on third-party NFT exchanges such as Rarible and Open Sea.
If you are wondering, the land purchased in these third-party NFT exchanges will also appear on your inventory when you look at the Sandbox Website. Just ensure that it exists in the same third-party wallet connecting you to your registered Sandbox account.
Note that discounts were only awarded in the presale rounds, and therefore, it is impossible to get any in the public land sale round.
2. Decentraland
Decentraland is also a common platform or game that allows people to buy land, assets, and a set of other properties in the virtual world. It was launched in 2017 and will enable users to own, operate and trade in their virtual world.
Decentralized has an innovative Blockchain architecture, which forms its basis and uses virtual reality and other open source technologies, allowing effortless operation by the different users. It has its token, MANA, which is also one of the most popular cryptos on the metaverse.
One of the main reasons this platform was launched was to enhance virtual real estate trade and ownership. It is known for the free market structure thanks to the decentralized autonomous organizations (DAO). It also has a governance system that users can use for funding access, community voting, and grant proposals.
Users can easily create, inhabit and win virtual reality assets, complete with their services. To buy LAND or any real estate, you will need MANA, the platform’s native token. There are several community plots for grabs.
These tokens can also be used in the Genesis City auction. We hope that soon we will be able to use MANA for direct land purchases from Decentraland and actual world purchases.
Note that when one buys LAND on here, they obtain a non-fungible token that reflects on their crypto wallet. It resembles a deed granting the user ownership of this virtual space. Decentraland will always know what you own as it can read this token from your wallet.
The pricing of the land is further dependent on its size and location.
There are 90,000 units, which were auctioned off when the platform was launched. All the units can be bought and sold freely. Lastly, it is worth noting that this platform has several web-based builder tools with asset packs that come in handy in constructing plot items.
Strengths
- You can auction the NFTs or sell the land for MANA
- The tokens have several use cases
- It has web-based builder tools to add items to the plots.
Weaknesses
- Lack of terrain variation
- No interaction for users.
3. CryptoVoxels
CryptoVoxels is a popular blockchain-based game and platform built on the Ethereum Blockchain network. It allows users to create, develop and sell property, including land. The blockchain permanently records your land membership, meaning that another person cannot own it unless you sell it.
This platform has monochrome blocks resembling Minecraft, which users can utilize when building their plots of land. After purchasing the $COLR tokens, you will be free to add color to your land parcel as you wish.
Most people have argued that this game combines Minecraft and Facebook, which isn’t far-fetched given Facebook’s support for the metaverse. It first allows you to build blocks traditionally and add images, audio files, texts, vox files, and some scripting.
All the packages and goods housing the voxels are usually traded on OpenSea.io through ETH. The parcel typically comes in black and white unless purchased from someone generous enough to leave some colors. Note that even though audio, texts, and images can be used with color, they will appear black and white.
Lastly, this virtual world is owned by users.
Strengths
- Users can access lots of fun editor tools to build their assets and land
- It has a simple user interface
Weaknesses
- It has a basic design
4. Somnium Space
Somnium Space was founded in 2017. It is a world builder platform by Arthur Sychov that supports VR estate ownership and trading. It is, therefore, a staunch competitor of platforms such as Decentralized.
Like all the platforms we have reviewed, it is also built on a blockchain architecture. Users get an in-app currency unit known as Somnium Cubes to purchase the property. It is crowdfunded by the trade of VR real estate, which one can use for e-commerce, gaming, and socialization, or for enterprise uses such as conferences.
Somnium Space comes with an in-app builder module and SDKs that offer a range of creative tools to create VR assets from the ground. Thanks to Blockchain technology, one can prove these assets’ authenticity. You can also trade them through the right marketplaces.
It is also worth noting that the company has several partners, mostly leaders in the blockchain, hardware manufacturing, and virtual reality world, whose primary motivation is to create an end-to-end ecosystem. These include Sony, responsible for 3D model creation tech, Admix, which helps in property monetization; and Matic and OpenSea, the main Blockchain partners.
Lastly, this platform allows you to list upcoming events on its events page. Therefore, users can advertise scheduled lectures, conferences, and a range of events. You can also schedule recurring events and stream them right from your console to live audiences.
Strengths
- It offers a permalink for every piece of land
- Has full-body avatars
- Offers out-of-the-box VR support.
Weaknesses
- It lacks certain features that its competitors have.
5. Second Life
Second Life is one of the most significant competitors of Somnium Space. It has managed to tower above it due to a few critical features lacking in the latter. It is a subsidiary of Linden Lab, founded in 1999.
Thanks to monetization, innovation, and several upgrades, this game has achieved an economic value of a staggering $500 million. Like its counterpart, this game and platform has several features that sell it to the general public.
It comes with a Second Life Viewer, a proprietary 3D browsing software that allows communication and connection. It also supports remote work and events, including conferences, collaborations, and meetings.
Users also love the different places and destinations found on this platform. These are normally parcels of land or regions. The parent company, Linden, has a series of web pages that land or region owners can use to list their property, allowing different people to discover them. Event hosting is also possible in such regions.
This site is free for users despite all these pros unless one wants the custom enterprise solution. You can also obtain premium membership which allows you to access virtual gifts, voice morphing, a weekly allowance, and priority entry to places.
Strengths
- It is a reliable platform.
- It has several destinations, scenes, and assets.
- Has several membership tiers
Weaknesses
- Users need a powerful computer to process the 3D images
- It may be pretty technical for some users.
Verdict
Of all the platforms we have reviewed, we highly recommend Decentraland owing to its functionalities and features. One of the reasons for its invention was to facilitate real estate trade. It allows for community voting, giving all the users a chance to participate in governance. It also has a powerful currency that you will enjoy.
Conclusion
Owning LAND in the metaverse sounds lucrative, especially with the recent land rush that we witnessed. However, make sure that you know everything at stake before you make a purchase.
