The metaverse is a virtual world that has been rapidly gaining traction in recent years. It has many applications, from gaming to socializing and commerce. One of the most promising applications of the metaverse is real estate and the potential impact of the metaverse on real estate can not be undermined.
For more background stories on metaverse, check out our article on metaverse and its implication for the future of work.
Real estate developers have been exploring how they can take advantage of the metaverse to create virtual replicas of their buildings and properties. These replicas can be used to attract potential buyers, allow them to tour the property remotely, interact with virtual avatars, and even buy the replicas. This can be done at a much lower cost than traditional real estate marketing and sales efforts.
In exploring the potential impact of the metaverse on real estate, it offers a new opportunity for real estate developers to monetize their properties. Virtual properties can be rented out, leased, or even sold directly through the metaverse. This could be beneficial to developers who are looking for flexibility and new revenue streams.
The potential impact of the metaverse on real estate can be significant. Here are a few ways the metaverse can affect the real estate industry:
- Virtual real estate: As the metaverse continues to grow and expand, there is a growing demand for virtual real estate. People are looking to buy digital plots of land in the metaverse to build virtual homes, stores, and other structures. This has led to the emergence of virtual real estate markets and platforms, where people can buy, sell and trade digital assets.
- Shift in traditional real estate: The rise of the metaverse could also lead to a shift in traditional real estate. As people spend more time in the virtual world, they may become less attached to physical spaces and spend less time in traditional brick-and-mortar locations. This could lead to a decline in demand for office spaces, retail shops, and other commercial real estate.
- New opportunities for developers: The metaverse offers new opportunities for real estate developers to create virtual spaces and structures. This can include everything from designing virtual homes to creating entire virtual cities. Developers who are skilled in creating digital spaces will have a significant advantage in this new market.
- Impact on urban planning: The metaverse could also have an impact on urban planning. As virtual cities grow and become more complex, there may be a need for virtual urban planners to design and manage these spaces.
What Is the Cost of Metaverse Virtual Real Estate?
Buying virtual real estate in the metaverse is becoming increasingly expensive. In 2021, these parcels were selling for around $6,000, but at the start of 2022, the price had risen to about $15,000.
In December, a plot of land next to rapper Snoop Dog’s virtual real estate reportedly sold for an eye-watering $450,000.
Overall, the average price per parcel of virtual lands across the six major Ethereum metaverse projects dropped from approximately $17,000 in 2021 to just $2,800 in July of 2022.
With the value of Metaverse tokens also decreasing, the cost of buying virtual land is likely to continue to rise in the coming years, making the virtual real estate industry a potentially lucrative investment opportunity.
Steps to buying real estate in the metaverse
Buying real estate in the metaverse is a relatively straightforward process.Here are the four steps to buying metaverse land:
1. Go to a website that supports NFTs, such as OpenSea or Decentraland;
2. Connect your wallet – it is recommended to use MetaMask or any other cryptocurrency wallet;
3. Click the “Buy Land” button;
4. Enter the amount of cryptocurrency you wish to pay for the land and complete the transaction. Additionally, it is important to consider the technical aspects of buying and storing cryptocurrencies and NFTs.
5. It is important to remember that buying land in the metaverse is a high-risk investment, but there is potential for big returns.
Each plot of land is sold as non-fungible-tokens (NFTs) in two ways: directly on the metaverse platform like Decentraland or on an NFT marketplace like OpenSea. The NFT gives you the rights to own and develop a specific virtual area on a particular metaverse games platform.
Top metaverse platforms to buy virtual land on
The top Metaverse platforms to buy virtual land on include Aavegotchi, Bit Country, Sandbox, Opensea, Decentraland, The Sandbox, Somnium Space, CryptoVoxels, Upland, ERTHA, Zepeto, Axie Infinity, Bloktopia, and Star Atlas.
1. Aavegotchi is a Non-Fungible Token (NFT) platform that is used for digital interactions and experiences.
2.Bit Country is one of the top Metaverse platforms to buy land/property in the virtual world.
3.Opensea is the most reputable and user-friendly platform to purchase land in the Metaverse.
4.Decentraland is one of the biggest Metaverse platforms and it offers unique opportunities for virtual encounters.
5.The Sandbox is a well-known Metaverse platform that allows users to show off their originality.
Zepeto, Axie Infinity, Bloktopia and Star Atlas are some of the other popular Metaverse platforms to buy virtual land on.
Is metaverse real estate risky?
Real estate in the metaverse is definitely a risk worth considering. As with any investment, there is the potential for both high returns and significant losses. Investing in virtual real estate requires in-depth research and analysis of the current market conditions, as well as an understanding of the unique risks posed by a volatile and largely unregulated market.
The metaverse is still quite new and ever-changing, and it is possible that changes to the platform could render your purchase obsolete or worthless. Additionally, there is always a risk that the company behind the metaverse could go out of business, leaving you without any recourse.
Another risk of investing in metaverse real estate is the potential lack of liquidity. Once purchased, it may be difficult to quickly sell the virtual property if you need to convert it into real-world funds. Without an established market, it may be difficult to find interested buyers for the property, leaving you stuck with the assets.
It is important to keep in mind that any investment carries its own risks and metaverse real estate is no exception. It is essential to take the time to thoroughly research the platform, the asset, and the current market conditions before making any decisions. With the proper knowledge and risk management strategies, investing in metaverse real estate can be a profitable endeavour.
How has Metaverse impacted real estate?
The metaverse has had a tremendous impact on the real estate industry, allowing businesses to create and explore fully immersive digital replicas of real-world environments. With the advent of the metaverse, businesses are now able to test out different designs and scenarios before fully committing to a particular physical space. This has enabled them to save time and money when designing their real estate projects, while also allowing them to make more informed decisions.
Finally, through the use of the metaverse, businesses are also able to use advanced visualizations and simulations to accurately predict how different designs and scenarios will affect the performance of their real estate projects. This has enabled businesses to make more informed decisions and has helped them reduce risk and maximize their returns.
Overall, the metaverse has had a major impact on the real estate industry and continues to open up new possibilities for businesses. By allowing businesses to test out designs and scenarios before committing to them, as well as enabling them to host virtual events and access advanced visualizations and simulations, the metaverse has become an invaluable asset for businesses looking to maximize their returns on their real estate projects.
In conclusion, the metaverse is an emerging technology that has the potential to disrupt the real estate industry. The potential impact of the metaverse on real estate as we can see is high. As virtual real estate becomes more valuable and people spend more time in the virtual world, the demand for physical real estate may decline. This shift could lead to new opportunities for developers and require new skills in urban planning.