In 2021 and 2022, there was a lot of buzzes about virtual Real estate in Metaverse. In November 2021, a plot of digital real estate in the Decentraland environment sold for a record-breaking price of 2.4 million US dollars. Hundreds of millions, if not billions, of crypto dollars, have been invested in this "gold rush".
The concept of Metaverse real estate actually is not that different from the concept of property in the real world. It exists digitally in 3D cities where users can engage in stimulating real-life activities such as meeting, gaming, partying, and trading. Real estate in the Metaverse is increasingly for sale, and ownership is verified by NFTs.
To explore this concept more, keep reading our article!
1. Overall Metaverse Real Estate
Real estate in the Metaverse refers to various parcels of land in the virtual world. They are not simply digital images; rather, they work in a more immersive manner. In Metaverse, real estate properties are programmable spaces where people can connect to buy, sell, or rent their virtual properties using metaverse tokens or cryptocurrencies.
The Metaverse Real Estate will be secured with non-fungible tokens (NFTs). Every purchase or trade is recorded on the blockchain in order to purchase digital land, and all NFTs are transferred to the digital wallet where the Metaverse participant stores their cryptocurrencies. Trading digital real estate property is very similar to trading in real life. People receive a title for each parcel of land, securely recorded in a registry, as well as an own copy to demonstrate their control over the digital land.
The digital land trade price can fluctuate because of the high volatility of the native token.
Some statistics of metaverse real estate:
- In 2021, Sandbox LAND increased by 15,000%. It also had the highest transaction volume in the same year, with a total of $350 million for 65,000 virtual land transactions.
- According to Influencer Marketing Hub, the metaverse market is worth $47.69 billion in 2020 and is expected to be worth $828.95 billion in 2028.
- McKinsey reports that "more than $120 billion has flowed into the metaverse space already in 2022 — more than double the $57 billion of 2021".
- In major metaverse platforms, the average price of a parcel has risen from $1,265 to $12,684.
2. What are the benefits of Real Estate in Metaverse?
a. Taking Construction to a New Level
The first and most essential steps in creating any property of any size are planning and construction. A well-planned project will result in high-quality construction, and vice versa. However, both phases are undeniably complicated, time-consuming, and involve a large number of people. Any level of human error can cause issues, affecting both the quality of the finished project and the rate at which it progresses.
Thankfully, the Metaverse technology can change this situation. It will be possible to create a metaverse application that allows users to map sites accurately, allowing contractors, engineers, and other key figures to visit a highly realistic version from the comfort of their own office or home.
Besides, everything from site surveys to detailed progress reports could be carried out virtually. This means we don't have to travel to the destination as we would in the real world, which saves time.
Furthermore, through their social channels, metaverse users would be able to contribute to construction by suggesting designs, and assisting with plans,... through their social channels. New AR applications can bridge the gap between the metaverse and home design, allowing for the efficient creation of floor plans and designs for construction and contracting.
b. Interior Design can Take Advantage
Interior design is the next phase after construction is done. Interior designers can take advantage of virtual modeling of the property, using innovative technology to propose various options to clients.
The interior designer, for example, could use metaverse to create different variations of the same room, with different color palettes and furniture styles. Meanwhile, homeowners will use 3D visualization and AR/VR technology to experience the differences between those designs before deciding which one best suits their needs. When compared to the real-life design process, this is unquestionably more enjoyable and less likely to result in disappointment.
c. Presenting Property in a Virtual World
The virtual world in Metaverse is beneficial to both property owners and potential buyers. In reality, if someone is interested in your property, they should go there and thoroughly inspect it before making a decision. In Metaverse, buyers or investors, on the other hand, could explore a virtual recreation of the home and still get a true sense of it, almost as if they visited it in person, using VR applications. It means that they can explore your properties regardless of location without wasting a lot of time and money.
3. How to Buy Real Estate in Metaverse?
Purchasing property digitally in Metaverse works in the same way that NFTs do. Begin with a personal digital crypto wallet and the Metaverse Real Estate portfolio. You must sign up for a wallet that will allow you to purchase the real estate you desire. The most popular is MetaMask for the Chrome browser, but Coinbase Wallet and Fortmatic are also options.
After you've finished with the wallet, choose which platform you want to use to buy real estate and create an account by connecting your wallet. Popular platforms include The Sandbox, Decentraland, Voxels,...
The next step is to select and purchase a plot of land on the chosen Metaverse platform. Land parcel selection, like real-world property trade, is heavily influenced by location. When looking to invest or buy metaverse real estate, remember to look for areas that have a lot of potential for development.
4. Closing Thoughts
The rapid adoption of technology has increased the appeal of the Metaverse across the world, and real estate in the Metaverse is the hot new thing! As such, becoming familiar with digital property is a sound idea for any potential user or investor who is interested in the future of the metaverse.
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