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How to buy or sell real estate in the metaverse?

04.11.2022

Published by Appelink

The Metaverse makes it possible to combine reality with the virtual and to live a digital life. Within it, people can play games, learn, socialise, have meetings or even earn money. Various investments can also be made, including buying or selling real estate, and that’s going to be our focus today.

This type of business is already widespread. Celebrities like Snoop Dog or companies like Samsung are heavily involved in this matter, and the worth of their virtual land is just getting bigger. A year ago, when these investments were still in their early stages, a plot on the biggest metaverse platforms, for example, didn’t cost more than $1,000. Today, the price has risen to about $13,000.

But first, the basics: Why should you buy real estate in the Metaverse?

You can buy land and use it for yourself, as a business space or for building a house.

Land can also be bought as an investment. This method is risky, as with any other investment. You have no guarantee that the value will increase or drop due to the decentralised economy of the Metaverse. Currently, the hype around metaverse real estate is very high as many people are starting to invest and are convinced that it will be more valuable in the future as more and more people want to get involved. There is even the possibility to rent out the land or a house, creating a rental market like in the real world.

Where do you buy Metaverse Land?

To invest, you first need to obtain cryptocurrency, as the purchase is usually made in this currency. The purchase of land then takes place directly on various platforms. The sale and ownership are recorded as a transfer of NFTs; this requires you to have a crypto wallet to store these NFTs or digital assets.

The Metaverse real estate business is very similar to that in reality. There are platforms for resellers or third-party sellers that act as decentralised real estate agents and provide the ability to list properties with prices, letting buyers negotiate.

The main Metaverse marketplaces mentioned above are Decentraland, Voxels, Worldwide Webb, Traverse and the Sandbox. These platforms have become so popular because of their well-established infrastructure. In addition, various celebrities are already Metaverse landowners as well. Who wouldn’t like to have Snoop Dogg or other famous people as neighbours?

What about security?

Of course, you want to have a guarantee of security when investing. However, the purchase of virtual land is always associated with risk. The market is almost completely deregulated. If something goes wrong, the channels for claiming restitution are undeveloped, leaving you with no backup.

All in all, theft or termination of the rental payment agreement is very unlikely. Everything is stored on blockchains and smart contracts, so it is securely encrypted.

Apart from the data-related risks, the increase in value is also questionable: In reality, the price is rising because real estate is a finite resource. Yet, the number of interested parties is constantly increasing. In the virtual world, the available real estate is unlimited. As a solution to this, some platforms have created artificial scarcity by limiting the amount of land they sell.

The future is uncertain, but if the Metaverse continues to become more attractive, virtual properties can be as common as physical ones.

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