Everything You Need To Know About Metaverse Real Estate
Would you like to buy a home in Miami that has 7 bedrooms, 9 bathrooms, and spread over 1+ acre land fully powered with smart home features?
Wait. Pay attention to the second option.
There is a land which is surrounded by fascinating scenes, adventurous dungeon maze, artistic villages, and dazzling clouds. Here, you can create your own sceneries, redesign flowers, change the weather, meet your favorite celebrities at nearby events, and do exciting things daily.
If this sounds imaginary, you might feel surprised to know that all these things are actually happening today in Metaverse real estate. To buy the first one, you need to bid at Meta Residence.io. And for purchasing the second property, go to Decentraland.
Metaverse is the hottest technology concept emerging incredibly in the modern age. With the massive adoption of virtual reality, NFTs, cryptocurrency, people are enthusiastic about buying property in the metaverse.
Many metaverse companies have launched their independent virtual worlds where people can not just buy lands or homes but also do many additional real-world activities. And interestingly, some of the virtual lands have been sold for even more than 5.5 Million USD.
So what is metaverse real estate? How does it work? What features make it a promising field for future investment? This blog will tell you everything you need to know about metaverse real estate.
What is Metaverse Real Estate?
Metaverse real estate is plot or residential place that exists in a virtual environment. It is not a physical property. It is actually digital asset or programmable space which can be customized by users. In the metaverse real estate, people can socialize with others, play games, buy and sell NFTs, attend virtual events, and do many other different virtual activities.
Metaverse real estate is built with blockchain technology, virtual reality, NFT, and other technologies. Just like we utilize deeds and titles to assign the ownership of real-world land. In metaverse real estate, blockchain technology is used to keep track of ownership in the form of NFT (non-fungible token).
So when it comes to buying metaverse real estate, you are actually purchasing an NFT-based land, a one-of-a-kind asset that is purely unique, and only you possess its ownership. Unlike real-world plots, metaverse real estate allows you to customize its structure and its surrounding environment as well.
World’s Most Popular Metaverse Real Estate Platforms
- Axie Infinity
- Somnium Space
Prominent Features of Metaverse Real Estate
Metaverse real estate is a blockchain-based virtual world. It works like a programmable space that enables users to modify or customize the environment as per their choices. Here, users can’t just buy or sell virtual lands but also create their own digital assets. Let us now see the prominent features that make metaverse real estate exciting and fully functional:
(Image Source: https://content.fortune.com/wp-content/uploads/2021/12/web_CentralTown-03.jpg)
NFT Real Estate
This is the most important feature. All the lands or plots in metaverse real estate are NFT-based digital properties. These NFT-based real estate properties could be a piece of land, a fully-furnished home, or space. Users can buy and sell their virtual real estate properties as NFT or cryptocurrency.
Metaverse is an entirely virtual world that offers similar things that people may find in the real world. Just like we have shopping malls and retail stores, metaverse also has digital storefronts. These virtual storefronts let participants enter the metaverse platform and explore all the available NFTs and digital assets. Users can select their desired NFTs or other assets to buy and make the payment within the metaverse system.
Metaverse offers a highly interactive and more engaging gaming facility. It offers a whole gaming universe where players have plenty of options to do. They can create their own virtual assets like buildings, earn cryptocurrency, trade NFTs, and make real-life dollars. Metaverse virtual reality gaming is built on play-to-earn gaming model to allow players to earn while playing games.
This is one of the most exciting features of a metaverse platform. In metaverse real estate, people have the option to participate in virtual events like live music concerts, fashion shows, product exhibitions, and more. Metaverse real estate includes virtual theme parks and cinema halls for public entertainment activities. In some of the popular metaverses, some events have been also conducted.
How Does Metaverse Real Estate Work?
Real estate in metaverse works like an NFT. This is a purely virtual environment based on a blockchain network. Users can buy any piece of land, plot, or home in the form of NFT. They have to send a request to buy the desired NFT real estate property and once the payment is done, the buyer will get the ownership code in their wallet.
However, there is a huge difference between metaverse real estate and physical land. Metaverse real estate is a virtual asset. It is not like physical property. It is a fully-digital platform that runs on a blockchain network with an internet connection.
But this characteristic doesn’t restrict the abilities and attractiveness of NFT real estate. It gives more power to the user. The owner of NFT real estate can use their plot for several purposes within the metaverse platform and make real-world money. They can rent out their land or space for conducting virtual events, digital storefronts, shopping avenues, and more.
Do Metaverse Also Work In Physical Real Estate?
Yes, metaverse also works with physical real estate. It basically provides a secure way for creating property ownership. When you buy physical land or any property you have to make a deed or follow an exhaustive legal process to ascertain the property ownership rights.
Metaverse here helps by providing a highly secured and convenient way to create property ownership of physical real estate property. Metaverse actually allows the creation of the NFT version of the physical land which is supposed to be purchased. It assigns a unique code or NFT token which solely belongs to the buyer. So this NFT works as an ownership code that solely belongs to the buyer only.
Here is one example
MetaReal Mansion is a real estate NFT of a real-world home based in Miami, USA. It is an identical virtual mansion in the metaverse which is listed for auction in 2023. The NFT version of this house would be given to the buyer along with the ownership of the real-life property. So metaverse is also working as an additional factor in the real estate industry.
How Much Does it Cost to Buy a Real Estate Property in Metaverse?
Decentraland is one of the top famous metaverse real estate platforms in the market. When it first sold its virtual land at the Terraform Event in 2017, it cost just $20. And you would be surprised to know that the same virtual lands cost more than $5,000 today.
Some of the NFT real estate in Decentraland has been sold for more than 2 million dollars. For instance, the Metaverse Group (a crypto investment company) bought land for 2.4 Million USD in Decentraland
So the price of a real estate property in the metaverse varies. It may cost you $100, or even $1 million. The cost depends on multiple factors like- on which metaverse platform you are purchasing the NFT? How much land do you want to buy?
Here are the most expensive virtual lands sold in some of the popular metaverse platforms. It would give you an idea of how valuable metaverse real estate is for investment.
|S. NO||NFT Real Estate Property||Price||Metaverse Platform|
|1||Genesis Plot||$660,000||Axie Infinity|
|3||Land Parcel #4247||$914,000||Decentraland|
|4||Hotel Booking||$1.09 million||Decentraland|
|5||Fashion Street Estate||$2.4 million||Decentraland|
How to Buy Virtual Land in Metaverse?
Buying virtual land or any other real estate property in metaverse requires a similar process to purchasing NFTs. It would give a blockchain-based unique code. This code would work as your ownership of the virtual property that you have purchased in a metaverse platform. Below are the steps to buy virtual land or real estate in metaverse:
- Have a digital or crypto wallet.
- Research lands on your selected metaverse platforms.
- Create a user account on the selected metaverse.
- Link your wallet to the metaverse platform to buy NFT real estate or other digital assets.
- Choose the desired portion of the land.
- Ensure your wallet has sufficient cryptocurrency to make the payment in the metaverse.
- Make the payment and complete the purchase.
How to Develop a Metaverse Real Estate?
Metaverse real estate development is a highly complex and advanced-level software development process. Its creation involves various technologies like blockchain platforms, virtual reality, artificial intelligence, cryptography, web development, and more.
You have to follow a certain process and find a reliable metaverse development company for developing a fully-functional metaverse real estate platform. Here is the process of developing metaverse real estate that you should ensure before you start stepping into this arena:
Step 1: Define your niche and project requirements
Step 2: Find a professional metaverse development company
Step 3: Create the UI/UX of the metaverse platform
Step 4: Write and implement the smart contract codes
Step 5: Install the IPFS storage system
Step 6: Setup database for storing information
Step 7: Integrated important AI and VR functionalities
Step 8: Test the functionality of the platform
Step 9: Launch the beta version
Step 10: Take feedback and re-launch with a fully-upgraded version
Risks and Challenges of Investing in the Metaverse Real Estate
Metaverse is a fascinating technology concept. It has been evolving at quite an impressive growth rate for the past few years. Especially with the increasing popularity of NFTs and virtual assets in the digital landscape, businesses are showing great interest in metaverse development. However, metaverse is still evolving and needs considerable time to come into a sustainable investment zone.
No matter what exciting features any metaverse platform gives, its existence and working entirely depend on the digital environment. In case of a lost internet connection or critical malfunction in its ecosystem, the entire metaverse system can become non-existence.
And these metaverse platforms use their own cryptocurrency. So there is always uncertainty in the demand and value of their cryptocurrency in the market. You can’t estimate exactly which metaverse cryptocurrency will have a higher value. Therefore, metaverse real estate has some risks and challenges that you have to consider while investing.
However, these associated risks and challenges don’t hamper the future scope of metaverse real estate. Metaverse uses high-end and powerful technologies like blockchain, cryptocurrency, artificial intelligence, web development which are highly reliable and widely used across all industries.
From top brands to small companies, every business size is investing in NFTs and metaverse real estate to take advantage of digital transformation. You only need the right expertise and knowledge for investment in metaverse real estate. A good NFT can let you make million-dollar profits.
Metaverse real estate is emerging as a promising future investment scope for both people and businesses. It allows NFT creators to monetize their virtual content and make real-life money for trading or exchanging NFT-based assets. For companies, metaverse real estate gives an extended digital space for promoting and selling their products and services on metaverse platforms.
But it requires the right knowledge and good research to choose and buy a valuable virtual land in a metaverse. You need to consult a professional metaverse development company that specializes in this field. They will assist you in making the right decision and ensure that your investment generates a high return on investment.
If you need assistance with this, Connect With Our Experts.
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