THE METAVERSE: Get Involved, or Get Left Behind

by Editor

The metaverse has a lot of implications for real estate and proptech, and you should start looking into it now if you don’t want to be left behind.

Real estate has a history of stronger returns than traditional equities, so analysts consider it a solid and rewarding investment.

Stability resembles scarcity, which drives demand. There are only so many plots of land on Earth, unless explorers go beyond. Real estate also provides passive income through rent payments and property value appreciation. Leveraging a real estate asset makes it easier to invest because it lets people grow their holdings without having enough cash on hand.

Despite its many perks, real estate isn’t for everyone. Real estate, unlike other investments, demands a large down payment. Concerns about down payments are second to property investment risk, as the property can’t be sold simply for cash. Despite the benefits of this asset class, the obstacles are still considerable compared to traditional channels.

Land in the metaverse, commonly known as NFT land, is a fast increasing sector where people may construct, earn passively, and grow their riches without the real world’s limitations or limits. Some of these chances include creating a shop, house, company, or complete neighborhood to an investor’s taste. All this may be done with blockchain support, which confirms plot authenticity and ownership.

Commercialization can also benefit investors. As metaverse platforms flourish and more people visit them, digital landowners gain money by renting, selling, constructing, leasing, or exchanging land for NFTs.

As the digital and physical worlds mix, NFT property remains a viable alternative to traditional real estate.

To understand this notion, suppose that digital reality exists in a virtual area known as the metaverse. Most platforms offer a realistic, three-dimensional experience that resembles the real world in many respects.

These projects are split into smaller portions and marketed as “land” or “plots.” Each plot is usually bought with the asset’s own cryptocurrency, but some initiatives allow money.

As more individuals participate online, it makes sense for their “flexes” to be digital assets. The enablement of the shift from physical to digital space may not be as farfetched as originally thought.

Digital applications allowing enterprises to make a profit are still in their infancy. After the COVID-19 epidemic, various activities and conferences have been transferred online, allowing global team members to participate. With airline ticket savings and better cooperation, many parts of virtual workplaces will continue even when in-person trade resumes.

Contrary to popular belief, buying and selling metaverse land is straightforward. The major choice is picking a platform.

The Sandbox, Decentraland, Cryptovoxels, and Somnium Space are the four major platforms in the metaverse currently. They have a total of 268,645 parcels of land, which, according to Proptech strategists, is insufficient acreage given the escalating demand. No one else can use a parcel of land once someone buys it, just like in the real world, unless they are willing to rent or buy it from the owner. Prices will rise if there is a great demand for a particular piece of land.

Several well-known corporations have made investments in the metaverse, and many more are looking for a place to call home. The Meta Platforms (Facebook), Microsoft, and Alphabet are investing billions of dollars to turn the metaverse into a trillion-dollar business. Prices have risen by up to 500 percent since Facebook changed the name of its holding company to Meta in October 2021, with buyers spending millions of dollars on parcels of pixelated land in this virtual world.

Popular hot spots will be valued more in the metaverse, just as they are in real life. Buying land in the metaverse is for advertising space on the internet today, and the value will be where brands advertise their products and services rather than the building itself on these plots.

It also opens up more opportunities for real estate investors. They can construct rentable structures such as kiosks or billboards, or they can purchase valuable real estate that can be rented to major corporations looking to make their mark in the metaverse for the first time. 

A significant part of what will drive long-term value and appreciation for real estate investors is a sense of community, with people visiting, hanging out, and becoming emotionally invested in these platforms. 

In the metaverse, as in real life, location is important. Snoop Dogg paid $300k for his plot of land on the Sandbox platform last year, and it’s now worth $4.8 million, while someone paid $450k for the land next to his in December. Snoop’s metaverse project, the “Snoopverse,” is heavily promoted in his music video for “House I Built.” 

Time is of the essence when it comes to investment, and demand is high while supply is short, which is comparable to today’s real estate market. There’s a lot to see and do in the metaverse, but know that you’re up against a lot of competition, including other investors looking for the same possibilities and limited space.

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