14 Things You Need to Know About Metaverse Real Estate
Digital real estate is already changing hands for large amounts of money, with one of the most expensive sales at upwards of 4.3 million dollars. But do you understand what digital real estate, or more specifically Metaverse real estate, is?
Below, we will investigate the world of the Metaverse and what it can offer you in the form of investment. By the end, you will learn how to buy real estate in a digital landscape such as the Metaverse and invest in the real estate of the future.
What Is the Metaverse
It is impossible to point to any one thing and say, "That. That is the Metaverse there". You cannot put it in a small black box and carry it somewhere. The Metaverse is a combination of several technologies that work together to create an "online world" of interactions.
The difference between the Metaverse and other similar ideas is that it will be completely cross-functional. Its makers intend to allow it to understand references from one technology to another.
The Metaverse's creators are building it around the idea of you having one universal persona. You would then take this identity from one location or application to another. You should be able to have many different experiences using this "avatar" or present yourself in many different ways.
Examples of Metaverse interactions include trading in digital cosmetics that you can apply to your avatar. Or buying an in-world vehicle that can move you around digital landscapes.
From a business standpoint, you might be able to make use of consistent and professional identities across many companies. A freelancer might have one visual identity that presents them in a mixed VR and Zoom environment. They might even create a virtual "meeting room", decorated with examples of work from their portfolio.
How to Invest in the Metaverse
It is possible to trade in stocks for companies that have already invested in the Metaverse. Although, that is not what we mean in this article by investing in the Metaverse. Instead, we are discussing the possibility of buying and holding on to digital goods that can change in value over time.
While the Metaverse is still young, there are already many online locations where one can buy up digital objects. The user must ensure that they have the valid key to access these objects, and this is where the idea of NFTs has had a profound effect on the Metaverse.
NFTs, with their verifiable ownership model, allow a person to say that they are the owner of a single item in a digital environment. A person can buy a digital Ferrari, and if only a certain number of Ferrari NFTs get made then scarcity and rarity forms.
Another way that people have been able to get involved in the Metaverse is by investing in digital real estate. Much like real-world real estate, prices continue to escalate as digital land gets more expensive due to scarcity and demand.
What Is Digital Real Estate?
Several companies have started to build "digital locations" for others to experience. These social universes have in-world landscapes that people can adjust to fit the user's desire. Or, in the case of people who buy parcels of land in these companies' digital locations, the buyer's desire.
As these companies in the Metaverse, they can brand the locations with their own images and scenes. If the Metaverse turns out to be a success, ownership or real estate in it may turn out to be very lucrative.
It is often acknowledged that involving oneself in the Metaverse might be a significant risk. But, at present, it is hard to see which way the Metaverse will go and as such the excitement is pushing people to buy.
It is not easy to define exactly what is the "largest" metaverse location. It is very easy to make the locations almost endless, but we can instead talk about their objective popularity. Currently, the largest options include Decentraland and Sandbox.
Each of the above two options has its USPs and has involved itself in the digital-currency world too.
Metaverse Coins or Tokens
Along with digital products, the Metaverse has encouraged the use of coins, tokens, or other currencies. These vary in nature and are often controlled in part by a central authority, such as the company that created the platform people can spend them in.
One type, named "Metaverse tokens", looks to be making the rounds in the past few months. They have been leaning on the fact that they have Facebook's clout behind them. But their success or failure may depend on whether the Meta company can pull off something very special with its Metaverse.
One of the main things people have used them for in recent months has been buying up investment in Metaverse real estate. They are the main currency one uses to buy locations in the Metaverse. Before one does that, though, they should learn as much about this unique location as they can.
Metaverse Real Estate
The Metaverse is a complicated place that is not quite like the real world. But it is similar enough that one can understand the basics. The following are several things that you need to know about Metaverse real estate before getting involved.
1. Virtual Real Estate Is Not Real
It might feel obvious, but it is worth saying. Virtual environments do not have a real-world location.
To see into them, you must access the application they exist in. This might be Meta's Metaverse, Decentraland, or one of many others that exist on the Internet.
You move around them and interact with things using an in-world avatar that others can see and interact with. The options for how you interact with real estate in this world depend on the limitations set by the universe's creator. But this can be as simple as a room with chat functions or as complex as fully-fledged gaming experiences.
2. You Can Buy It With Crypto
You can buy real estate in the real world for crypto like any other thing you buy. Although in the Metaverse, many worlds make use of cryptocurrency as a default. This creates an exchange rate with real-world currency and keeps the money "in-world" for the universe's creators.
3. It Is Still "All Farms"
The days are still very early for metaverse real estate properties. Not all the locations have been bought, and several universes still have vast swathes of land that are still undeveloped.
The comparisons to suburban locations in the real world are already being made and are very apt.
4. Some of It Is Already Going For Millions
Those looking to buy real estate in the Metaverse are not holding back. People have been spending huge quantities of cash or cryptocurrency to get the locations they want.
As of writing, the most expensive plot of virtual land has sold for $4.3 million. Republic Realm, a virtual real estate investor, bought the land from Atari in November 2021. It now intends to work with the videogame developer to improve the property going forward.
5. Metaverse Land Is an NFT
The way that land trades work in the Metaverse demands a level of clarity and security that the location remains in your possession. As such, the transactions that underpin the Metaverse make use of NFTs, the same technology behind crypto.
This ensures that each item is a unique digital asset and that one can assert ownership should someone ask who owns it.
6. It Is Being Used for Events
Companies are already using virtual spaces to host events. In Decentraland, for example, the company has earmarked a whole area for digital fashion events and to sell virtual clothing. Other areas are being used to advertise real-world products.
7. People Still Have Doubts
Despite the amount of money people are investing in Metaverse real estate, there are still many doubts that people have. Some see it as only another Internet bubble, or it could be a place where large numbers of people make a huge amount of money.
As we have seen with Bitcoin and other cryptocurrencies, the future of the Internet is still in the air. Many people are earning money hand over fist until then.
8. Investors Are Getting Involved
Full-time investors are using Metaverse real estate to pump their digital portfolios. Republic Realms, as mentioned above, are only one example of many people willing to invest in the possibility of this technology. As such, they are making a large impact in the future.
9. You Can Invite Others to Your Metaverse Space
Much like real locations, you can invite potential investors into your virtual space. This means that you can show them around and give the tour much like any other real-world location.
Investing in your virtual space is exactly as important as any other. As such, some companies are already offering their services to develop locations.
10. People Aren't Only Buying, They're Flipping
If you think you would be the first investor into virtual real estate to sell it on, you are already much too late. Because NFTs drive the ownership of Metaverse real estate, they already exist as an asset that people can trade.
Companies already exist to buy, improve, and flip locations as fast as possible. And they already show a level of success.
11. You Need an Account and a Lawyer
Third-party organizations own these virtual worlds. As such, you must work within the Terms and Conditions of them to access your account. This drawback means that you might need to look into how they handle real estate ownership and their Ts & Cs might change over time.
If you are looking to invest, make sure that you have a good Internet lawyer to read through that document.
12. Celebrities Are Making It Interesting
Some celebrities have been buying up real estate. Not only for clout, but some want to make use of the space for personal use. And with celebrity comes the fans.
As an example: One fan of Snoop Dogg's has even spent $450k on a piece of real estate next to his favorite celebrity's house. If you can harness this kind of fanaticism, who knows what you can do in a virtual world.
13. The Next Version of Social Media
With Facebook's owner, Meta, invested in the Metaverse, you can have the assurance that the online space will only get bigger. Integration with Facebook, as well as many other online spaces, is sure to come next.
Getting in at the ground floor of the next big social media thing will help anyone looking to invest in it.
14. The Future Is Big
These locations are not only for show. The Metaverse, and real estate in it, is not a static image that you do not interact with. Much like Roblox, many of these locations are starting to have utility or entertainment purposes.
You may find that the location you buy is perfect for hosting events, using it as a gaming space, or doing one of a million other things.
Being a Metaverse Realtor
Because the Metaverse itself is not "real" in the same way that a picture of a house is not real, defining what a Metaverse realtor is has taken some time. Many online exchanges have automated a lot of what realtors might do in the real world. This includes providing listings and parsing large amounts of information for buyers.
Instead, Metaverse realtors act as recommenders and specialists. They will work with less tech-savvy individuals. Thus, ensuring that people can move forward with the right information available to them to make these purchases.
Metaverse realtors will also be able to give recommendations about if they believe specific investments are worth it. They can talk about virtual properties and whether there is value in buying them up or selling them on. They are, in essence, digital data analysts.
Learn More About Digital Real Estate
You should now have a much better idea of what digital real estate is and how investing in it is a good way to get involved in the future of property. You might still have some questions, though, and we are here to help you.
As the preeminent authority in the SoCal real estate market, we can answer any questions you have. All you need to do is get in contact and we will be able to tell you everything you need to know about digital realty. So, send us a message today and we will get you started on your journey.