In 2021, nearly $2 billion (£1.75 billion) has been spent on virtual land as individuals and businesses compete for a foothold in the Metaverse. Real estate is prohibitively expensive. However, some of the most valuable lands on the planet aren’t even on the planet. Investors are now willing to pay millions of dollars for land that only exists in 3D virtual worlds. The Metaverse is a digital reality where you can shop, play, watch, buy, sell, and do pretty much anything you can do in the mortal physical world.
We will increasingly use these spaces to work, play, socialize, and learn; anything we can do in the real world will have a “digital twin” in the Metaverse with which we can interact without leaving our homes. Real estate in the Metaverse is already big business. Snoop Dog and global corporations such as PwC, JP Morgan, HSBC, and Samsung have already purchased plots of virtual land that they intend to develop for a variety of purposes.
Metaverse land is not only buyable but also programmable, and it is purchased, sold, or exchanged in the form of non-fungible tokens (NFTs), other cryptocurrencies and even fiat. Adidas, Atari, Ubisoft, Binance, Warner Music, and Gucci are among the few multinationals buying land and creating experiences to sell and promote their products and services in Sandbox, another crypto metaverse.
So how to buy real estate in the metaverse? Let’s find out!
What is Metaverse Land?
Before finding out how to buy land in metaverse, let’s go through the basic definition. Land in the Metaverse has the same classical definition as land in the real world. The value of metaverse land is only going to rise. Thousands of developers are working tirelessly to create amazing virtual worlds in the hopes of becoming a huge success. They began by selling plots of land to others who wanted to buy them in the hopes of profiting. And they’ve done a fantastic job of it. While blockchain-based real estate in the Metaverse is not physical, it provides the same — or possibly even stronger — ownership rights over a plot of (digital) land.
In the most basic sense, they are pixels. They are, however, more than just digital images. They are programmable areas in virtual reality platforms where people can socialize, play games, sell NFTs, attend meetings, attend virtual concerts, and engage in a variety of other virtual activities. Investors can purchase land plots from a variety of metaverse platforms that offer distinct virtual environments. Because each of these platforms serves a different purpose, no single platform can fully represent the Metaverse. Some of the most popular metaverse platforms for real estate developers to invest in are The Sandbox, Decentraland, Metahero, Horizon Worlds, and Celebrity Atlas.
Consider coordinates in a massively multiplayer online role-playing game (MMORPG), where in-game characters can teleport from one location to another using such coordinates. Metaverse platforms, by utilizing such systems, essentially provide brands and users with a dedicated address in the virtual world.
What is the Importance of Buying Metaverse Land?
From one of the top trends in 2022 – Metaverse and the concept and ideation behind it has taken the internet world by storm. From owning land to attending art exhibitions and music concerts to donning the best outfit for your metaverse avatar – the digital is inching closer to the real world each day. No wonder businesses and corporations are vying for their share of space and audience in the metaverse. But as an individual, when you keep hearing the exciting affairs concerning the metaverse, you must wonder how to buy land in the metaverse.
Digital real estate in the metaverse is growing at a fast pace owing to the rising interest and prices in the metaverse. For instance, financial giants such as JP Morgan and HSBC have bought their virtual plots in the metaverse. Many celebrities and corporations are soaking in the digital real-estate buy/sell drill. A Citigroup report found the metaverse opportunity to be worth $13 trillion by 2030. The metaverse opportunity is massive and will rise exponentially in the coming years. Many people realizing this, have become even more intent on exploring the question ‘How to buy land in metaverse?’
Let’s explore this question ourselves.
How to Buy Land in Metaverse?
For us to explore the question ‘How to buy land in metaverse,’ we need to understand that buying land in the virtual physical world isn’t much different. We may purchase a big mansion on grassland, but we would love to live in a small apartment in the midst of the city. Coming back to the question of how to buy real estate in the metaverse, let’s put it in the form of a step-by-step guide:
Step 1 – Select a Metaverse Platform
Wondering how to buy land in metaverse? Unless you already have a virtual land project in mind, you should compare available options before making a decision. Decentraland, CryptoVoxels (now called Voxels), Worldwide Webb, Treeverse, and The Sandbox are the most popular market places today.
Step 2 – Buy Cryptocurrency
The next step in the process of ‘how to buy land in metaverse?’ is to make sure you have a crypto wallet with appropriate funds before you go on ‘property shopping’ in the metaverse. And while we say so, it is worth remembering that purchases on particular platforms can be made using limited cryptos including Ether and the native token of the platform.
Step 3 – Select a Piece of Metaverse Land
Next, you have to choose the piece of metaverse land you want to purchase. Log into the platform of your choice and scout for pieces that meet your taste, budget, and other criteria. Next, compare the prices of each before you zero in on one.
Step 4 – Finalize your Virtual Land Purchase
Once the choice is made, it is always preferable to read more about them and the terms and conditions that might be involved in the purchase. Next, you must link your digital wallet to the platform account. Take note that you have ample funds to make the purchase.
When you complete the transaction, the piece of land gets stored as NFT in your linked wallet. At any time, you can access your land NFT and view it under the NFT tab.
This was all you needed to know on how to buy land in the metaverse. Let’s now explore the viability of such a purchase.
Is it Safe to Buy Land in the Metaverse?
Every week we hear record multi-million dollars real estate deals being struck in the metaverse. While investing in a still-emerging sphere may seem a bit apprehensive, a move with caution and understanding can help you benefit from the deal. You may choose to buy the land anywhere, but all that matters is the location. The plots of land at the center of a metaverse city and those owned by celebrities are the most expensive. Also, each kind of metaverse has its own set of cultures, styles, and areas of focus. For instance, the Sandbox is a game-centric virtual space. The next thing you need to consider is how much should you plan to spend. Plots of metaverse land are cheaper in primary markets but difficult to get hold of. The vice-versa stands true for secondary markets.
What is the Future of Investing in Metaverse Real Estate?
According to Cryptonews, investing in a piece of metaverse land proved to be much more profitable than owning Ethereum for a year. Currently, metaverse investing opportunities are great for those interested in getting their hands on high-risk, high-reward opportunities. The golden rule stays relevant for how to buy land in metaverse, too, i.e., ‘one shouldn’t invest more than what one is willing to lose.’
In the future, individuals and institutions will both have metaverse-based investments as a part of their portfolio, given that virtual space will be a necessity in the coming years. The metaverse real estate has soared in 2022. A Grayscale report cites that the market opportunity for metaverse may be soon worth $1 trillion in revenue.
What are the Benefits of Owning Metaverse Land?
1. You can Earn Income While your Virtual Land Appreciates
An investor can buy land in the metaverse and sit back and see their land value appreciate with time. Although most metaverse investments haven’t had enough time to depict the growth properly, the momentum is definitely building up. For example, a piece of land in Decnetraland purchased for $111.52 in 2017 was sold for $13,703 in 2021!
2. Commercial Tenants are Easier to Find than you Might Imagine
You can also put up your land and properties for rent and enjoy an additional income from the same. Users can also create their own virtual malls, apartments, and offices and rent the same to the commercial players.
3. Input Costs are Low in Comparison to Real Life
This advantage is pretty obvious as the cost of building a virtual property is negligent compared to a real-world structure. You don’t need to procure raw materials, tools, and equipment or set up a supply chain of workers. At the most, you may need a virtual structure designer to design the layout of your building.
4. Can be a Part of the Metaverse Experience
Purchasing a Metaverse land allows you to experience the beauty of the virtual world. You can offer full-stack property development services in the metaverse. Working with a metaverse real estate development firm can help you build a successful business model. Virtual land can be used to create experiences for advertising, marketing, socializing, and entertainment.
5. You can Advertise for your Products
Hosting a metaverse event is an excellent way to engage your audience with your brand. If you want to go all in on metaverse advertising, creating your own branded virtual venue will solidify your company’s image in the web3 space. Sotheby’s, the world’s oldest auction house, is a prime example of this. They opened their own gallery in Decentraland’s Voltaire Art District in 2021.
6. Virtual Land Owners can Provide Services
Virtual land is used by major brands and some investors to provide exclusive services to their customers. Decentranland, for example, announced a new platform feature that allows its users who own virtual LAND to essentially become landlords. Owners can now rent out their property to other platform users for predefined periods of time. This enables users to generate passive income from their metaverse assets.
Why Should You Buy Land in the Metaverse?
The metaverse is a growing sector, and as the world moves over to the digital sphere, we will see a greater influx of individuals, businesses, and institutions living their extended lives via the metaverse.
There are multiple benefits of getting into the metaverse as a landlord now. First, because you will have an early-mover opportunity, the prices are still low and are bound to skyrocket in the future as more metaverse potentialities and use cases awake and arise. As top market players and global giants enter the space, the competition will become thicker and land more scarce in the metaverse.
While you earn from price appreciation, you can also put your idle property into multiple uses, like letting the commercial players hire those spaces. In this way, you will have a steady stream of passive income from your metaverse investment. So while you learn how to buy land in metaverse, make sure you look into the opportunities that await you.
What are the Top Metaverses You Should Know About?
While learning about ‘how to buy land in metaverse?’, let’s also find out which are the top metaverses at the moment!
1. The Sandbox
Sandbox is a play-to-earn game based on Ethereum. Furthermore, Sandbox integrates blockchain, DeFi, and NFTs into a 3D metaverse. In the virtual world, people can own assets, play, build, and own their properties and in-game assets. Furthermore, they can sell such assets for real-world money. A token called Land represents virtual lands in the metaverse game. Players can use this virtual world to create and personalize games. In addition to the blockchain, The Sandbox makes use of the potential of non-fungible tokens (NFTs) to allow people to interact with the virtual world.
Decentraland is a user-owned, Ethereum-based virtual world platform, or metaverse, that allows users to participate in a shared digital experience. Users of Decentraland can purchase and sell digital real estate while exploring, interacting, and playing games in this virtual world. The platform has evolved over time to include interactive apps, in-world payments, and peer-to-peer communication for users. Decentraland is similar to virtual reality video games, but it is more immersive and real because assets are owned. Everything available in the physical world can be found here, from digital skyscrapers and rapid transportation systems to movie theaters and hotels.
Cryptovoxels is an Ethereum blockchain-based metaverse. This virtual world is made up of real-life infrastructure such as roads, buildings, and lands. Users can own land parcels and construct structures on top of them. Land parcels can be purchased using Ethereum. Cryptovoxels’ virtual world includes real-world infrastructure such as roads, lands, and buildings, among other details. Users on Cryptovoxels can own land parcels and construct new structures or establishments on the land. Ethereum is the preferred Cryptovoxels coin for paying for land parcels..
4. Somnium Space
Somnium Space is an Ethereum blockchain-based virtual reality application that allows you to create, experience, and trade digital worlds and NFT assets. This metaverse differs from other multiplayer VR games in that all players are in the same world rather than on separate sub-servers. The creator tools and dynamics allow the user to project, build, and trade their townships, cities, and megaprojects while roaming in the arenas of other participants.
While the metaverse and its real estate may be a hot commodity now, the zeal remains limited to a few experts who share mixed opinions on the value an intangible piece of land will have in the coming years. But what if Gucci opens its digital store next to your land in the metaverse?
The possibilities of a virtual space that’s still growing and will continue to grow infinitely are infinite. All we need to know is how to grab the right opportunity, aka the virtual property, and learn how to buy real estate in the metaverse.
Frequently Asked Questions(FAQs)
1. Can you already Buy Land in the Metaverse?
Yes, buying land in the metaverse is possible. Users can usually buy a plot of metaverse land through the platform’s marketplace, or they can use a third-party NFT platform like OpenSea or Rarible. Follow the steps in our guide above to learn how you can buy land in the metaverse.
2. How much does Metaverse Land Cost?
As of January 2022, the cheapest plots of metaverse land were selling for around $11,000 each. In December 2021, a Snoop Dogg fan paid $450,000 to buy “land” in the metaverse next to Dogg’s virtual property. The smallest plots of land on the metaverse platforms Sandbox and Decentraland were selling for 3.7 ether and 3.46 ether, respectively around the same time.
3. Can I Buy my own Property in the Metaverse?
Yes, you can buy your own property in the metaverse. Land purchase in the metaverse is only possible with cryptocurrencies. The Sandbox (SAND), Decentraland (MANA), and other top metaverse projects have attracted real estate investors. Follow the steps ahead to get your own property in the metaverse.
4. Which Metaverse should you Consider Buying Land?
Individuals and institutions will both have metaverse-based investments in their portfolios in the future, as virtual space will be a necessity in the coming years. In 2022, the value of metaverse real estate has skyrocketed. You should choose the metaverse land that fits your investment needs.
Disclaimers: Opinions expressed in this publication are those of the author(s). They do not necessarily purport to reflect the opinions or views of Shardeum Foundation.
About the Author: Anuska is a sci-fi lover freshly exploring the blockchain and Web3 space. Her expertise lies in simplifying complex Web3-related concepts and topics for herself and others.
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