Buy fictional lands in a virtual world? Have you ever thought about that? While the idea sounds a bit absurd, the number of investors who have put their money into virtual land within the metaverse is huge.
It’s hard to believe, but large companies focused on the metaverse’s economy or technology have paid millions of dollars for lands on the Internet.
However, very few people understand why this is happening. Are you one of them? Do not worry. Today, we will learn why the real state in the metaverse is booming.
What is the metaverse?
You can find all the information you need on the web. With a single click, you can discover everything you need to know about betting or casino games, something impossible to believe a few decades ago when people only played in Las Vegas.
The future looks just as or even more promising. The term “metaverse” made headlines around the world in October 2021, when Facebook rebranded as “Meta.” The social media giant explained that the metaverse was a vision of a connected 3D digital world.
That 3D world allows the real and digital worlds to converge using technologies like virtual reality (VR) and augmented reality (AR). People will be able to access that environment using VR headsets, AR glasses and smart apps to work, meet with others, party, learn, and more.
Relationship between the real state and the metaverse.
But the properties could not be missing in that world, right? Here’s how the real estate industry and the metaverse converge too. Digital goods have been around for a few years. The ones that received the most attention in recent months were NFTs, for example.
NFTs or non-fungible tokens became primary methods of monetizing and exchanging value within the metaverse as they are unique digital assets. While an NFT is typically an item of digital art, including pictures or music, there is also virtual real estate.
In November last year, a patch of virtual real estate in Decentraland, an online environment where people can walk around, meet others as avatars and buy land, sold for $2.4 million.
But what will companies or users really do with their virtual lands? The answer is the reason why they have become so popular.
Landowners can do anything with their lands. The buyer of the plot in Decentraland said the space would be used to host digital fashion events and sell clothing for avatars. Sounds interesting, right?
Properties in the real world offer tangible benefits, and although they are very different, lands in the metaverse can promise similar things. All users who buy virtual real estate can choose a house, customize their land, invite their friends or visit others’ homes.
The future of real estate in the metaverse.
We already talked about real estate trends and some benefits for investors or users, but the popularity of real estate in the metaverse has also grown due to potential earnings.
According to technology experts, the metaverse will grow and mature into a fully functioning and robust economy. That means that it will not only provide a digital experience in sync with daily life but also represents a good investment opportunity.
Many investors became interested in the metaverse shortly after Facebook announced its plans and have made multi-million-dollar purchases, hoping their investments will pay off when the metaverse comes true. It has also happened with the NFT games, where large investors have bought land to farm tokens and increased the zeros in their accounts.