How to Buy Land in the Metaverse: The Ultimate Guide for 2022
(This article was originally published on Udonis’ blog.)
The virtual real estate market is booming. Many are wondering how to buy land in the metaverse, as this can be a great investment and makes blockchain gaming more fun.
In this article, I explain how to buy metaverse land in five easy steps. Additionally, I also cover how land in the metaverse works, what are the benefits of buying it, and how much it costs.
What Is the Metaverse?
Before we get into how to buy land in the metaverse, let’s go over the basics. Here’s what the metaverse actually is and how it works.
Even if you’re not a web3 and crypto enthusiast, you’ve probably heard about the metaverse — everybody’s talking about it. Metaverse became the main news and part of the mainstream conversation when Facebook changed its name to Meta back in 2021. From then on, everybody has been fascinated by this idea and what it means for the future.
Put simply, the metaverse is a new version of the internet where people can interact in the virtual world with their avatars. It’s a blend of the words “meta” and “universe”.
It’s important to note that the concept of metaverse and metaverse games is not particularly new. Online virtual worlds like Second Life were popular in the early 2000s. The term metaverse is even older — it comes from a novel titled Snow Crash, published back in 1992.
Even though we’re not quite there yet with the technology that will allow for a metaverse in the full sense of that term, there are many metaverses already in existence. They come in the form of video games and most of them use blockchain technology. Some examples are games like The Sandbox and Decentraland. Many of them are play-to-earn games, which means players can make a profit by playing.
The blockchain technology in metaverse games enables players to not only interact in a virtual world but also own land there, along with other digital assets that come in the form of NFTs.
What Is Land in the Metaverse?
Current metaverse games typically consist of different areas and offer plots of lands players can purchase. In other words, these are digital properties players can own in a virtual world.
Land in the metaverse is a non-fungible token, which means it’s unique, immutable, and there can only be one owner. Because land is not only unique but also verifiably scarce, these NFTs are very valuable. In fact, they have real-world value and they can be traded for cryptocurrency and even fiat currency.
What’s the Purpose of Land in the Metaverse?
Primarily, land in the metaverse is where users can create a variety of experiences, host events, and even mini-games. Furthermore, players can build on it and pretty much create whatever they think of. For example, galleries, stores, and casinos.
However, there are other ways in which users can use their metaverse land. As I already mentioned, it can be sold and thus users can earn money from it. Furthermore, land can also be valuable for advertising. It’s easy to see how brands would be interested in placing advertisements on such properties. Additionally, many brands already own land in the metaverse, hoping to offer services the same way they would in the real world.
Remember, all of this is just the beginning. As technology advances and more people get interested in the metaverse, there may be even more uses for land in the metaverse.
Should I Buy Land in the Metaverse?
Because land NFTs are valuable and tradable, and the metaverse real estate market is booming, many are thinking about investing in it. While there are many benefits of owning metaverse land, there are also some risks that come with it.
Here’s an overview that will help you make that decision.
Benefits of Buying Land in the Metaverse
One of the main benefits of buying land in the metaverse is that it has real-world value, even though it’s virtual. As I mentioned, each parcel of land is an NFT that you can trade and possibly make a profit. This is especially true for those who get in early and reap the benefits when virtual real estate becomes even more valuable.
However, it’s not all about investment and the possibility of making a profit. By purchasing land in the metaverse, you get the opportunity to build on it, show off your game assets, and enjoy all the fun experiences.
Risks of Buying Land in the Metaverse
While the decision to buy land in the metaverse may be a good one, as it’s a great investment, it also carries risks you need to be aware of.
Because the crypto market is quite volatile, your land might lose its value. It can happen overnight. We’re currently in crypto winter, i.e., bear market, and land prices are dropping. So if you haven’t bought virtual land during the bull market, buying now is a potentially good investment opportunity.
However, all investments have a risk factor, both in the real and virtual world. The most important thing is to understand all the benefits and risks that come with it and see what’s the best decision for you.
How Much Is Metaverse Land?
How much you’ll need to pay for land in the metaverse depends on many different factors. Primarily, which metaverse you choose, which parcel in that particular metaverse you choose, which blockchain the metaverse operates on, and how scarce the land is.
For example, if you go with a popular metaverse game where most of the parcels have already been sold, you can expect high prices, as land there went up in value. How big the land is is also a factor. Furthermore, if you want to purchase land in premium areas, you can expect premium prices, e.g., Fashion Street District in Decentraland.
Additionally, in metaverse games that use the Ethereum blockchain, you can expect to pay gas prices for the transaction, which adds to the final land cost. The price also depends on the current state of the crypto market, as changes can drive land value both up and down.
To give you a better idea of the prices, see the sections below — I give examples of the cheapest and the most expensive metaverse land parcels.
Cheapest Metaverse Land
Because the crypto market is unpredictable and changes every day, it’s hard to tell what the cheapest metaverse land is.
But just to give you an idea, in Axie Infinity, the cheapest parcels are about 1 AXS (1 AXS = 13.25 USD on July 13th, 2022).
The floor prices for The Sandbox and Decentraland’s land parcels are about 2 and 2.5 ETH respectively. In Cosmic Universe, they’re about 2 MAGIC. If you like Illuvium, you can be a land owner for just 0.3 ETH, which is quite cheap. Similarly, land in WorldWide Webb recently dropped to 0.4 ETH. You can convert ETH to USD here.
This gives you an idea of how much you’ll likely need to spend to purchase the cheapest land in popular metaverses.
However, remember that each metaverse has different prices when it comes to land. Furthermore, because ETH has dropped amid the crypto winter and there are many changes in the market, expect these values to shift as well.
The Most Expensive Metaverse Land
At the moment, the most expensive metaverse land sale was in TCG World where 19 commercial real estate properties were sold for $5 million to Curzio Research. The company bought this land to create virtual headquarters in the TCG World.
The second biggest sale happened in December 2021 for a whopping $4.3 million! It was in The Sandbox metaverse and it was purchased by Republic Realm, a group of developers from Atari.
Another big purchase was for Fashion Street Estate in Decentraland, which was sold for $2.4 million.
Where to Buy Metaverse Land?
There are three main ways to buy metaverse land — on the platform’s marketplace, secondary marketplaces, and through metaverse real estate agencies. Here’s a short overview of them all.
One of the easiest ways to buy land in the metaverse is on the platform’s marketplace. For example, Axie Marketplace, The Sandbox Marketplace, and Decentraland Marketplace. This is the best choice if you want to make a direct purchase.
Another way to buy land in the metaverse is on secondary marketplaces. These are NFT marketplaces like OpenSea and PlayDapp and there you can purchase land that other users are selling. This is also where you can purchase other digital assets like in-game items as well as artworks.
Metaverse Real Estate Agency
You can also enlist a metaverse real estate agency to find the right land parcel for you and help you with the transactions.
Yes, those really exist — more on virtual real estate companies in the next section!
How to Buy Land in the Metaverse: 5-Step Guide
In this simple 5-step guide, I’ll teach you how to buy land in the metaverse. By following these steps, you’ll be an owner of a metaverse land parcel in no time!
1. Choose a Metaverse
The first thing you need to do is choose a metaverse. As I mentioned, the most popular metaverse games where you can buy land are Decentraland, The Sandbox, Axie Infinity, WorldWide Webb, Gods Unchained, Alien Worlds, My Neighbor Alice, Illuvium, Sorare, etc.
However, you may also want to go with a less popular metaverse — it’s all up to you and your preferences.
Here are a few things you should consider when choosing a metaverse game:
- How fun and exciting is the game
- How big is the community
- How it’s set up
- Land scarcity
- Land prices
- Potential for profit
2. Set Up a Crypto Wallet
Most metaverse games require you to have cryptocurrency to buy land. Because of that, you’ll need a place to store it — a digital wallet.
There are many different crypto wallets out there and which one you choose depends on the metaverse you’ve chosen. You need to make sure that the wallet supports the cryptocurrency you need for that particular metaverse.
For example, if your metaverse of choice is on the Ethereum blockchain, you should go with a top Ethereum wallet like MetaMask, if you want a digital wallet or Ledger Nano, which is a physical wallet. Similarly, if the metaverse is on the Harmony blockchain, you might want to go with CoinBase wallet or Mathwallet.
3. Purchase Cryptocurrency
Once you’ve set up your wallet, you’ll need to fill it up with some cryptocurrency. Once again, the type of cryptocurrency you’ll need depends on the metaverse. The most popular ones are ETH, MANA, and SAND.
4. Connect Wallet to a Metaverse Game
Before you can buy land in the metaverse, you need to connect your wallet to a metaverse. The process for this step depends on the game so I recommend you check out the game’s FAQ. It’s usually fairly simple, even for beginners.
5. Choose Land in the Metaverse and Purchase
Now that you’ve set up and connected your wallet, here comes the fun part. Choosing the land parcel and making the purchase.
But how do you choose which parcel to buy? Here are some basic guidelines.
Best Land to Buy in Metaverse
Most metaverse games have different areas or districts with parcels of different sizes. There are both common (and cheaper) areas and exclusive (more expensive areas). Furthermore, land parcels may have various resources on them, which is another factor to consider.
For example, in Cosmic Universe, you can choose between Elysian Fields, Enchanted Forest, Mystic Alpines, and Forest of Whimsy. Each of those areas has different scarcity percentages as well as different resources. If you choose to buy land in Elysian Fields, you won’t get a ton of resources. On the other hand, if you buy a parcel in the Enchanted Forest, you’ll find “abundant resources to help players quickly and effectively develop their land plots and combine them into advanced settlements.” You get the picture.
Once you’ve chosen a parcel that’s right for you in terms of size, area, and price, all you need to do is click the purchase button. Once the transaction is completed, you’ll be a proud land owner in the metaverse!
BONUS — Hire a Virtual Real Estate Agency
I’ve also mentioned virtual real estate agencies — this is another way to buy land in the metaverse. If you need help with choosing the best land and making the purchase as simple as possible, working with a real estate company might be a good idea.
One such agency is Metaverse Property. It offers services like metaverse consulting, property management, and development. According to the company, “We facilitate the acquisition of virtual property along with a suite of virtual real estate centric services that are provided by pioneers of the crypto, blockchain and non-fungible token (NFT) industries.”
Making a Profit as a Metaverse Land Owner
While there are many ways to make a profit if you own land in the metaverse, I’ll focus on the two most common ones — selling and renting it.
How to Sell Metaverse Land?
If you’ve decided to sell your metaverse land and hopefully make a profit, you need to list it for sale. You can do that on the platform’s marketplace, secondary marketplaces, or through a real estate agency.
Furthermore, you’ll need to decide whether you want to auction your land or sell it at a fixed price. If you choose the latter, you’ll need to decide on the price. Naturally, you’ll want to get more for it than you paid for.
To make sure you’re not selling your land for too low or high of a price, do some research first. Check out different marketplaces and see what are the current prices for metaverse land. It also doesn’t hurt to check out how the overall crypto market is doing and where it might be heading. This will help you make a more informed decision.
How to Rent Land in the Metaverse?
If you want to make a profit from your metaverse land, but not sell it, you can rent it to other users. In this case, you’re still the land owner, but a user who rented it can use it for mining, for example.
It’s a great passive income opportunity, which is another great reason for buying land in the metaverse.
Final Thoughts on How to Buy Land in the Metaverse
As I’ve illustrated in this article, becoming a metaverse land owner might be a great investment. Furthermore, it adds an exciting layer to blockchain gaming.
However, the decision to buy land in the metaverse is yours to make. Remember that you can also rent land in the metaverse, which might be a great option if you’re not ready to buy just yet.