How can I buy land in the Metaverse
The Metaverse real estate is one of the most sought-after properties that you can purchase. According to reports, virtual land sales in 2021 reached 500 million with approximately $85 million being sold in January 2022.
Metaverse real estate sales are expected to reach $ 1 billion by 2022. This makes it an attractive asset class for investors around the world. You could get an early-access advantage by purchasing digital land. This sector promises to be fast-moving, high-growth.
Defining Metaverse Real Estate
The Metaverse is an immersive, three-dimensional virtual platform that allows users to interact with digital objects and AI-powered avatars in a natural and highly realistic way.
Interoperable means that users can use the spatial communication platform to move between virtual worlds. Different platforms can also coexist within one environment. This allows virtual games and collaborative spaces for one platform.
The metaverse can also be democratized. It isn’t controlled by any one person, organization, or entity. It is open to everyone, regardless of their financial status, and anyone can make use space, technologies, or environments available.
The Metaverse uses technologies such as virtual, augment, and mixed reality (VR/AR/MR), as well as Blockchain, artificial intelligence (AI), 5G and cloud computing to achieve these capabilities.
It can also be a virtual copy of our physical world. Metaverse users can use virtual environments to monetize services and goods, and make profits. This can be done by buying land in the Metaverse. Renters or buyers can then develop monetized properties.
Metaverse individual real estate plots can be called virtual ‘parcels’. These are blocks of 3D space that developers can use to superimpose objects, create VR worlds, overlay experiences and build interactions.
A Metaverse will typically have a democratic governance body that decides how parcels are created, alloted, and made available for real estate investors.
Today, most virtual land sales occur on four Metaverse platforms: Decentraland (the Sandbox), Cryptovoxels (the Cryptovoxels), and Somnium. The parcel is stored on the blockchain as a nonfungible token (or NFT), which is an un-interchangeable asset.
The buyer will acquire full ownership of the NFT once it is sold. They can then resell the land, create virtual property on it, or lease it out.
How do you buy land in the Metaverse
There are three options available if you are interested to purchase real estate in Metaverse.
1. Talk to a Metaverse real estate broker
Metaverse has its own industry in real estate, including brokers, mortgage providers, and agents who are experts in this area. Although digital real estate is still in its early stages, brothers Tal and Oren Alexander have found their niche.
They previously handled high-value realty purchases in top US cities like New York City. But they are expanding into the Metaverse.
They declared that they would be acting as brokers for luxury properties within the metaverse. Design and location are the primary considerations.
The pair have partnered with Republic Realm, a virtual land developer. recently bought a Sandbox home for $4.3million. Brokers and agents can help interested buyers find the best Metaverse properties and make investments.
2. Find a low-cost metaverse mortgage
A Metaverse mortgage is another option that could be considered. This would make it more affordable for frequent buyers. Metaverse mortgages are a new idea, and only a handful of companies offer this option.
Terra Zero is one provider that allows users to purchase land on the ‘Big Four Metaverse platforms such as Decentraland and Somnium.
TerraZero currently offers Metaverse mortgages for virtual land. These empty parcels can be developed or leased out to make profits. These are ready-to-use areas for gaming or events.
3. Buy metaverse land with cryptocurrency
This is the simplest way to purchase land in the Metaverse. It is also the best for small, affordable purchases. Customers can make purchases by:
- Go to the Metaverse property marketplace of your choice. This is similar to the app marketplaces on software platforms.
- Log in to view the design and location of the land and compare prices. Finally, you will be able to create a shortlist.
- Create a digital wallet compatible with the Metaverse real property you have selected. You will need a wallet to support transactions such as land purchase in Decentraland.
- Connect your digital wallet with the Metaverse account to ensure that it has the right type of crypto.
- To transfer crypto money to the NFT for real estate, click on the Buy or Purchase button.
- You can also work with Metaverse Properties, which will manage and develop your virtual property for greater profits.
If you choose to get a mortgage, the steps will be similar. The only difference is that the mortgage provider will own the entire ownership rights to NFT land until you pay it off. However, you can still manage and develop the property during that period.
What are the risks of buying land in the Metaverse
As with any investment, purchasing land in the Metaverse carries its own risks. The land cannot be ‘lived’ on, so it is only for investment and value creation.
The location and development surrounding the property, as well as the adoption rate of the platform over time, will all play a part in real estate’s profitability. If you don’t sell the property immediately, it could take some time before you see any returns on your investment.
Blind’s 2022 survey found that only 13% of technology professionals are purchasing virtual real estate. However, despite the risks, Metaverse real estate is becoming an important asset class for investors. It may be crucial to portfolio diversification in future.