If you look out for the most lucrative establishments in the world, you will find real estate among the toppers of the list. It is no news that digital giants are inclining towards a decentralized internet. The future of the internet is no longer in view but here already. Can you imagine the possible future of one of the highly lucrative investments in a growing decentralized system? Unimaginable? Well, this article is an insight into one of the largest investments the world has ever witnessed.
The Metaverse redefined
The metaverse is a virtual existence of everything you can think of, including you. It's a digital version of the universe whose future is unpredictable. If you can have it or do it in the real world, the metaverse can make it a virtual possibility. The metaverse has gained lots more attention in recent times. Part of the reason was Mark Zuckerberg's public announcement on Meta's plan to leverage the metaverse. However, the metaverse is not owned by Meta (formerly Facebook). It is a digital creation many companies use, just as Meta does. Hence, the metaverse is a general term. You can read our previous article regarding what the metaverse is here.
Metaverse and Real Estate
Like some people, you might find it unimaginable to spend thousands of dollars on acquiring virtual land. But I bet you would have a different thought when reading about Justin Bieber's virtual concert. It recorded an attendance of about 10.7 million people from around the world. This concert took place somewhere in the virtual space – the metaverse.
One of the leading opportunities in the metaverse is real estate. Since most metaverses are just gaining ground and attracting investors, acquiring metaverse real estate properties would be wise. The highest valued land in the metaverse currently was purchased by The Republic Realm – a real estate company in the metaverse. They acquired land worth 618,000 MANA (equal to 4.3million dollars) in the Sandbox.
Metaverses to check out for Real Estate opportunities
1. The Sandbox: The Sandbox is a virtual space created in 2012 and built on the Ethereum blockchain. This virtual space allows users to monetize their gaming experience through NFTs. With over 166,000 plots of land, it empowers developers to create games in their spaces, create NFTs, and organize a marketplace for their users to transact. A plot of land on the Sandbox is worth about $10,000. They have prominent partners including Snoop Dogg, Soft Bank, The walking dead, Atari, Hell's kitchen, Richie Hawtie, and more. Sandbox uses SAND as its medium of exchange with a conversion ratio of 1.32 to 1 SAND according to CoinMarketCap.
2. Decentraland: This metaverse is said to be the hottest cake at the moment. Created in 2015, it has over 90.000 plots of land. With an active user of over 220 million, it charges $6,000 for 16*16 square land. Decentraland uses MANA as its medium of exchange with the conversion ratio of 2.51 to 1 MANA according to CoinMarketCap.
3. Upland: Upland differs from another metaverse with its real-world approach. While other metaverses are plain digital areas with buyers developing them, Upland gives a digital representation of the earth's map. For example, you could acquire the same area of land you live in the real world with Upland. It, however, has few states in the United States currently and keeps growing with its user base. Upland uses a cryptocurrency called UPX with a rate of $1-1000 UPX. The smaller properties available right now are said to be in the range of $6,000-10,000.
You can check out metaverse properties to start acquiring properties in any of the above metaverses. Other metaverses you could invest in are; CryptoVoxels, Axie Infinity, Bit Country, Somnium Space, GALA, Facebook Meta, and more.
Real Estate Opportunities in the Metaverse
By acquiring properties in the metaverse, here are a few ways to make massive returns in the short and long term.
- Land Sale/ Lease
- Property development
- Infrastructure rentals
Why should you invest in metaverse Real Estate?
There are lots of reasons people are jumping on metaverse real estate. Some of which are pretty personal to the investors. On a general note, below are three main reasons why you should consider investing in metaverse real estate:
- Short-term returns: Like physical real estate, virtual properties and land are subject to value increment over time. Here, you can invest in real estate for short-term gains. In order words, you buy the land/properties to sell later.
- Long-term gains: This is a more stable reason to invest in metaverse real estate. You acquire properties and reserve them for the long term. You earn through the lease of land and properties, rentals, and other means. It is a better and more stable form of investment.
- Bragging rights: If you think owning real estate in the metaverse amounts to nothing, you should read about the person who paid over 400,000 dollars to be Snoop Dog's neighbor in the Sandbox. The bragging rights of having a property in the metaverse are no joke. Acquiring a real estate property in the metaverse makes you a unique digital investor.
Are there risks involved in metaverse real estate?
There are no exceptions of risks in every investment, and it might just differ in level. The risks in metaverse real estate are attached to its volatility and speculative anticipations. Since no one knows whether a metaverse project would fail or not, it is better to tread with caution. Most metaverse projects' prices are determined based on the hype. Hence, every investor stands at risk of the unknown future worth of their investments.
The metaverse stands as one of the most promising elements of the decentralized internet. It is beyond interacting with people and having a close-to-real-life experience. It poses unlimited opportunities for investors, developers, and internet giants.
This article should not be taken as a piece of financial advice. It is essential to conduct your research before making investment decisions.
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