Real Estate in the Metaverse
An Overview of the Real Estate Market in the Virtual World
Real Estate has been a great investment right from the early 1900’s. In the words of Mark Twain, ‘Buy land, they aren’t making them anymore.’ Fast-forward to 2022, let’s just say this quote is not quite as accurate as one might think. The whole notion stems out from the fact that New-York and Manhattan might not be the hottest selling real estate locations anymore. For that matter the hottest properties aren’t even on the world we currently live in cause they are existent in the Metaverse.
The Idea of Owning Virtual Land
The idea of owning virtual land may not be alien to a lot of people that have played games like Farmville, Clash of Clans and The Sims. The Metaverse has propagated this idea to the next level with an emphasis on its monetization. People paying an exuberant amount of money on real estate that isn’t tangible but virtually existent might sound rather absurd. However, this is exactly the case in recent months where we have seen individuals as well as larger corporations bid millions of dollars for a piece of land, $2.4 Million USD to be exact.
How Special Can the Metaverse Be?
All this craze erupted after the tech conglomerate Facebook rebranded to Meta, ushering us all into the new era of the Metaverse. The buzz and work on the metaverse has always been prevalent long before this move as well. A lot of the pricing can be seen from the spike in interest for owning virtual pieces also known as NFT’s (Non-Fungible Tokens). So, what makes real estate in the metaverse so special? Digital Scarcity! Like physical land on earth, land in the metaverse is also limited. Akin to any land in the physical realm only select plots of land are desirable, increasing the value drastically.
Top Metaverse Projects
Some of the top Metaverse projects that have people buying into them are the Sandbox (SAND), Axie Infinity (AXS), Decentraland (MANA), Enjin (ENJ), etc. All the above mentioned metaverse projects have been built on the Ethereum blockchain and have a certain currency as mentioned beside them that can be used in the metaverse. Apart from the above there are plenty of metaverse projects headed by gaming companies like Atari and Roblox.
Location, Location, Location
What makes real-estate so expensive. Just like the real world there are a plethora of features that drive up the value of a place. In the metaverse, the number of visitors as well as the location (co-ordinates) of the plot are factors allowing these to sell for over $4 Million USD. However, there are plenty of plots available on different metaverses for an affordable price. Decentraland has been divided into exactly 90,601 plots and the Sandbox is divided into 166464 lands. The highlight of the virtual world is that regular people have a chance to buy simple plots or even a vacation island on the metaverse. Some say, buying real estate in the metaverse is similar to buying real-estate in Manhattan in the 1940’s
An Ocean of Opportunity
Art, Fashion and even Technological companies have taken advantage of this bloom in owning virtual real-estate. Entering a metaverse like the SANDBOX and deciding to explore the virtual world would lead you to recognize a lot of top brands like Gucci, Nike, Samsung, Balenciaga, etc. These brands have seen this as an opportunity for publicity while also shifting their new operations to the metaverse saving their cost on infrastructure. Justin Bieber and Snoop Dogg are among the celebrities that have performed in the metaverse. The endless possibilities in this new virtual world has been one of the reasons that corporations are capitalising on this potential trillion dollar opportunity.
The price tags on a lot of real-estate might already be at a staggering amount. However, there are plenty of plots yet to be purchased while some are still being developed. The potential for these virtual worlds are beyond imaginable if channelled rightly.
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