Metaverse Real Estate
This blog post will cover:
- What Is Metaverse real estate
- The cost of Metaverse real estate
- Where to buy Metaverse real estate
- Statistics on virtual real estate
- Pros of virtual real estate
- Cons of virtual real estate
Ever tried explaining this phenomenon to your parents? Nowadays you can purchase pieces of virtual land in the metaverse, just as you would any physical property. Sometimes this may be a difficult idea to grasp, as it’s all so new, but let’s take a closer look to see what it’s really all about.
What Is Metaverse real estate
Metaverse real estate is a part of virtual land that’s available for purchase. It comes in the form of NFTs. Virtual real estate can be monetized by its owners, by renting it out, used to host various gaming or social events, or even traded on. The possibilities are endless, and like in reality, it all depends on your choice.
The cost of Metaverse real estate
The first piece of virtual real estate was sold back in 2017 while its cost was only $20. However, as you would expect a lot has changed since nowadays using the popular Decentraland metaverse as standard the average price of metaverse land is around $15,000.
Overall the price of Metaverse real estate ranges from around $6 thousand to over $100 thousand. The record for the most expensive Virtual real estate is $4.3 million spent in the Sandbox metaverse back in November 2021.
Where to buy Metaverse real estate
Buying virtual property works just like you’re buying any NFT: the first thing you’ll need is a crypto portfolio, then make an account on any Metaverse platform you like and hop in. Your crypto wallet has to be linked with the platform you chose.
And similarly to the outside world, Metaverse property is purchasable via specialized brokerages and agents. However, here’s a minute of caution — the Metaverse real estate market is not regulated meaning it’s completely your responsibility to find reliable options.
Most virtual real estate is owned by the so-called “Big Four” — Decentraland, Sandbox, Somnium Space, and Cryptovoxels. They are the market leaders, so usually virtual estate owners get property from them.
Statistics on virtual real estate
To stand on a more secure ground, let’s take a look at some useful stats which will get us deeper into the topic:
- The price of LAND Sandbox’s token grew by a whooping 150x in 2021.
- The Metaverse of Sandbox has a transaction volume of $350 mln and 65 thousand virtual land exchanges.
- In 2021, the Metaverse real estate space was worth $501 mln and is expected to double by the end of 2022.
- In 2020 the Metaverse space was worth $47.69 bln and is expected to reach an incredible $5 tln by 2025.
- In the span of just a couple of years, the average cost for a Metaverse property has risen from $1,265 to $12,684.
Pros of virtual real estate
Investing in virtual real estate could bring nice profits in the long term. The Metaverse has just started to develop, and this market is still in its first steps. However, the market predictions are quite positive, with a possibility of the Metaverse being worth trillions more a couple of years down the road.
Real property seems to be quite expensive in the physical world. Usually, people spend hundreds of thousands on buying a home. In the Metaverse, it would only cost $8 or maybe $10 thousand. Considering just how much potential the Metaverse has there’s still a lot of possible growth. However, this advantage is variable — everything depends on your plans, as the real house is made for living, and the virtual one is obviously not.
Cons of virtual real estate
Nevertheless, the great opportunities also come with risks. Let’s face it, to become a virtual estate investor you need some serious guts. Buying Metaverse real estate can be daunting, there’s no certainty that the plot of virtual land will be worth what you expect, even if the Metaverse space rises in value.
On top of that, there’s also a lack of regulation regarding the sale of virtual real estate. Unlike in the physical world, anyone with no prior accreditation can open shop and call himself a virtual real estate agent. This means that it’s up to the individual to draw his own conclusion on who to trust, as scams are not that uncommon. So, as we always say, do your own research before investing in anything!
Virtual real estate presents a huge opportunity, both for investing and business development. Metaverse technology undoubtedly has a lot of potential to change the world, and it’s only in its first steps.
However, the novelty of the concept makes the future of the space very unpredictable and the lack of regulations means that gullible users risk getting scammed. The Metaverse real-estate space may be growing, but there’s undoubtedly still a long way to go.
SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.