Despite its digital existence, land in virtual worlds has become incredibly valuable. A race has been sparked to acquire metaverse properties, drawing in crypto enthusiasts, tech followers, and prospective users. People are now investing millions of dollars to obtain a piece of real estate in the metaverse. This article will investigate the reason behind this newly found craze and how one can join in on the land rush.
What does Metaverse Land Entail?
The buyer can obtain land on metaverse platforms by purchasing plots of virtual land at their marketplaces or third-party NFT platforms such as OpenSea and Rarible, with payment options including cryptocurrency and fiat. This land is valuable since it can be programmed for various purposes, from gaming to hosting events. Moreover, its ownership status can be easily proven via non-fungible tokens (NFTs) because all transactions are visible on the public ledger.
The surge in technology’s popularity has been great news for the virtual real estate industry, with developers and sellers pulling in lucrative profits. The market has grown exponentially this year; Metaverse property prices rose 700%, with the industry reaching $500 million by year-end. This impressive growth is expected to continue, with an estimated $2 billion expected to be generated in 2023.
What are the uses of virtual land?
Some observers have accused investors of exploiting an NFT bubble amid skyrocketing prices of virtual land. However, the hype surrounding these metaverses goes beyond mere price speculation; for many users, NFTs present a potential revenue stream from activities such as renting and governing metaverse land. By monetizing digital assets and experiences in the metaverse, some of the notable trends driving this revenue-producing market include:
Real estate flipping
Users can buy a piece of virtual land and resell it at a higher price.
Many people are using spare land to construct digital properties for themselves or others, such as virtual gambling establishments, clubs, music festivals, NFT exhibitions, stores, and more.
Real estate brokers specializing in NFTs have been created to connect sellers to potential buyers or provide clients with advice on managing their virtual assets properly.
Increase the sales – Advertisement
Highly-visited regions of the metaverse are quickly becoming attractive spots for advertising. Landowners can rent these areas and allow businesses to display their products or services.
Events and services
The metaverse is designed to enhance the virtual world we already inhabit and create new ones. Consequently, virtual spaces like The Sandbox are being utilized for events and services. People in the metaverse can even develop and share mini-games and educational activities for others to enjoy.
Major companies such as PwC, Sotheby’s, JP Morgan, and HSBC are embracing the metaverse and integrating it into their real-world operations, allowing customers to access services and communicate with staff much the same way as they would in the physical world. Moreover, a growing number of financial institutions are beginning to explore additional opportunities for conducting business in a virtual setting by investigating virtual real estate financing, metaverse mortgages, consumer lending, and cryptocurrency transactions.
Discover how to acquire virtual land in the metaverse.
Buying and selling virtual land follows the same principles as NFT sales, making it a relatively hassle-free task. To start, most metaverse platforms are accessible with a desktop platform. This way, you can look at available pieces of land and get snapshots with vital information such as location, total area, expected prices, utility potential, and transaction history.
After deciding what piece of land you want to buy, you can use the metaverse marketplace or choose from different secondary NFT platforms like OpenSea or Binance NFT. Remember that these lands are NFT-based, so their proof-of-ownership is registered in blockchain for extra security against potential frauds and other catastrophes.
Follow these steps before committing to a purchase:
1. Get a digital crypto wallet
Facilitate your transactions within virtual worlds–for example, MetaMask or Binance Chain Wallet. Select the wallet supported by and complementary to the metaverse platform of your choice for optimum efficiency. Make sure the wallet supports the cryptocurrency being used in whatever virtual project you’re investing in, as noted by the preferred currency of the metaverse platform.
2. Purchase of Cryptocurrency
As previously noted, you require sufficient in-game currency to carry out transactions. Popular currencies such as $MANA, $SAND, and $ETH can be purchased on exchanges like Binance, Coinbase, or KuCoin.
3. Choose a Metaverse
When deciding on a virtual land project, comparing different options is essential. Popular platforms such as Decentraland and Sandbox sell virtual lands through tokens like MANA and SAND. Keep in mind that the size of the land and its price will vary based on the metaverse it belongs to. Make sure you check the overall size, cost, and if there is an existing owner before committing.
4. Confirm Your Purchase
When you have your digital currency in your digital wallet and decide which plot of land to buy, you can head to the metaverse’s market (or a third-party platform) and click buy. Once the real estate transaction is complete, you will be able to find the NFT in your wallet, confirming that you are now its owner. From here, you can hold onto the property, create something on it, or re-list it for sale once more – hopefully at a profit.
Where can I purchase the virtual property?
Before diving deeper into specifics, it’s essential to remember that many virtual world platforms have limited quantities of parcels available to the public. This helps create digital scarcity and promote a healthier virtual economy (one is hopeful). For example, Decentraland consists of 90,601 plots of equal size. The Sandbox is made up of 166,464 lands—which are what the network calls parcels. Besides these two, there are plenty of options, with land suitable for all kinds of services, activities, and events, from advertisement to business opportunities. To get a bird’s eye view of the current market condition, you can check out OpenSea’s rankings for virtual worlds.
LAND in the Sandbox can be sourced by using their platform or through third-party NFT exchanges like OpenSea and Rarible, although these tend to be more expensive than LAND found in official sales, likely due to high demand.
Plots in Decentraland, the metaverse land, have been some of the most expensive sales, going for millions of dollars. Its partnerships with high-profile brands, as well as its celebrity and influencer tenants, contribute to the platform’s allure.
CryptoVoxels is an ever-growing digital world starting with just 3,026 parcels that can be purchased through direct sales or the OpenSea platform in exchange for USD and ETH. The price of the minor plot of land sits at 1.899 ETH (roughly USD 5,335).
Somnium Space, a metaverse focused on virtual reality experiences, games, and NFT art, entered the scene in 2018. As of the start of 2023, roughly 8K land parcels were distributed throughout the platform.
With more land to be released in due course, those looking to purchase plots can use $CUBE and find them on OpenSea.
Investing in Metaverse Land a wise decision?
When it comes to investing in increasing technology, there are risks and benefits to consider. While some may still be hesitant about the idea of buying and trading metaverse land with no physical asset involved, the potential of virtual and augmented reality, Artificial Intelligence (AI), and virtual worlds is undeniable. Only time will tell whether a speculative investment in virtual properties is worth it.
Why Choose Metappfactory as Your Metaverse Real Estate Development Company?
The metaverse is a rapidly growing digital world where virtual real estate is becoming increasingly valuable. The process of purchasing and developing metaverse properties can be challenging. Still, fortunately, there is a metaverse development company like Metappfactory that is dedicated to helping users buy and build their virtual dream properties.
With access to a wide range of developers, Metappfactory can bring life to your dream, whether a virtual gambling establishment, a music festival, an NFT exhibition, or a store. With their expertise and resources, they can help you navigate the complex world of virtual real estate, from buying land to monetizing your assets and experiences. Whether you’re an investor looking to flip virtual real estate, a business owner looking to expand into the metaverse, or an enjoyer wanting to create a unique digital space, Metappfactory will be an excellent option for realizing your metaverse aspirations.