With the metaverse becoming a reality, real estate is going digital. There are more opportunities opening up to invest in virtual properties and their prices have been going up steadily.
Can you imagine it – you can now buy land in the metaverse! In this future, 3D space is widely available and many brands are developing a presence in the virtual world.
Several companies, such as Metaverse Group, operate virtual worlds. One of the latest trends in these markets is land purchases – such as a recent sale worth $2.5 million in Decentraland near Fashion Street. Decentaland leads the pack with a recent sale worth $2.5 million near Fashion Street.
The promise of a virtual reality future spawned this booming market. Physical workplaces will be obsolete in a few years, according to Ray Kurzweil, and will be replaced by virtual ones. Virtual reality and augmented reality are expected to generate $162 billion in sales by 2020. People will naturally flock to buy and sell real estate if it is available, even if it is virtual.
Imagine coming to New York when it was still farmland and being able to buy a block of SoHo. If someone wants to buy a piece of SoHo real estate today, it’s priceless because it’s not for sale. In the metaverse, you’ll have the same experience, but only one manages to get in at the right time.
Decentraland has a limited quantity of LAND, and investors are already buying up property in the hopes that values would rise in the future. It hasn’t gone unnoticed that there is a scarcity.
In addition to the LAND, all digital art in the virtual world is a non-fungible token, or NTF. The biggest benefit is that it makes digital art more scarce, making it much easier for artists to sell their work. Every artwork is undeniably one-of-a-kind.
In a few years, technologists anticipate the metaverse will mature into a fully functional economy, providing a seamless user experience as ingrained into our lives as email and networking are today.
The boom in Non Fungible Tokens (NFTs) and cryptocurrency has also led to the growth in the virtual world. According to a recent report by Metaverse, people globally spent $128M on virtual real estate in 2018 and paid the hefty price-tag of $1M USD per acre, with commercial NFTs carrying an even higher price which we aren’t able to see yet.
People are taking an educated leap of faith as they invest in virtual real estate because it can be sold or leased. The potential to make money from these pieces of land is an attractive reason for many which is a good enough reason to jump in early. Many of these people feel that after owning a piece of land, there’s a possibility to generate a profit by leasing it out or selling ads.
Silicon Valley’s largest tech conferences continue to rumble on with predictions that the Virtual Reality ‘metaverse’ – an interconnected system of diverse virtual spaces – could underpin the world’s economy in the not too distant future. The Metaverse could offer tools for low-density environments like deserts or Antarctic tundra, or high-density environments like Mumbai or Beijing.
Similar to websites, which are a larger part of the world wide web, companies like Meta (brainchild of Facebook’s Mark Zukerberg) are creating their digital realm. The virtual real estate market anticipates a future world in which everything from concert venues to shopping malls to houses will exist virtually through the medium of VR.
The future we once dreamed of is now closer than we thought. The market is quite bullish on the scope of metaverse changing the world. It is exciting to see how people have welcomed this technological revolution. One shouldn’t be surprised to see when soon people start buying virtual spaces as a gift for their loved ones. The transformation is happening. Which side are you on?