Use Cases Of Metaverse In Virtual Real Estate

22 Dec 2022
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Real estate in virtual worlds is called metaverse real estate. The most typical types of these digital belongings are buildings, land parcels, and avatars; however, they can take many different forms and sizes. They are pixels in the simplest meaning of the word. But they're more than just computer images. They are programmable spaces in virtual reality platforms where users can socialize, play games, sell NFTs, attend meetings, go to virtual concerts, and do countless other virtual activities.

 

The purpose of buying metaverse real estate 

The purpose of buying metaverse real estate

Users have a place to meet online through metaverse real estate. People can play games and socialize on their digital property. Creators can monetize their property's content by imposing access fees or engaging in NFT trading.  Brands can use their virtual properties for advertising services, organising virtual product launches, and providing unique customer experiences. For real estate investors, these digitally depicted land parcels provide tremendous opportunities. Metaverse properties can be built, flipped, or leased like real-world ones. In fact, there is a wide range of possible uses for metaverse real estate.

 

How can you purchase metaverse real estate?

How can you purchase metaverse real estate?

Buying a metaverse property is the same as buying an NFT. On a blockchain, your deed of ownership is a unique piece of code. This code confirms your ownership or rights over that piece of digital land.

You will need your own digital crypto wallet to build your metaverse portfolio. You might want to research the platforms that use specific cryptocurrencies for their transactions before opening a new wallet. Afterwards, go to the virtual metaverse portal and register for an account. You must link your digital wallet to the site to purchase land and other assets. Choose a parcel of land, then buy it. Like real estate, you can buy metaverse land through brokers and property managers.  However, unlike in the real world, metaverse brokers are not subject to any laws or licensing requirements. Therefore, make sure to deal with trustworthy parties.

 

How to choose which land parcels to purchase in the metaverse?

How to choose which land parcels to purchase in the metaverse

Similar to real estate, location is important when choosing a virtual land in the metaverse. As major companies like Atari, Samsung, Miller Lite, and Adidas stake their claims on The Sandbox and Decentraland, the value of parcels in these virtual environments keeps increasing. Many early buyers of lots adjacent to them or within the vicinity have profited greatly from their investments. If you plan on investing in metaverse real estate, look for areas with potential development. Properties nearby potential gathering points will be worth more than those in unremarkable locations. Consider plots of land that are close to but outside of developed areas. You can score these properties for comparatively lower prices, build on them, and wait for prices to increase.

 

What effect will real estate in the metaverse have on the market?

What effect will real estate in the metaverse have on the market? 

The real estate industry will undergo profound changes due to the metaverse. Consider the following:

  • Opens up investment in real estate to a wider range of investors:  Real estate in the metaverse comes in various shapes, sizes, locations, and price ranges. It can be purchased in several different currencies.  Almost everyone can invest because of the low cost and ease of access.
  • Size and location are prioritized over utility because they are all important factors in real estate. In the metaverse, buying land is done with the intention of developing it or leasing it out. This disregards utility in favour of size and placement. 
  • It can serve as a platform for activities in the real world: In the future, people plan more real-world events like weddings, trade shows, and other social gatherings on the metaverse.  This could reduce the need for physical attributes utilized for these reasons.

 

Metaverse real estate statistics

Metaverse real estate statistics

We have compiled the most recent data on the market to aid you in making a data-driven choice on whether to invest in metaverse properties or not. Look at these numbers to determine if buying real estate in the metaverse is wise.

  • In 2021, Sandbox LAND increased by 15,000%. It also had the biggest transaction volume in the same year, with 65,000 transactions totalling $350 million in virtual land.
  • Revenues of metaverse real estate on the four major platforms were $501 million in 2021; this year, sales are projected to double to $1 billion. 
  • According to a study, the metaverse market was estimated to be worth $47.69 billion in 2020 and is projected to bring in $828.95 billion by 2028.

 

Risks and difficulties of investing in the metaverse

Risks and difficulties of investing in the metaverse

Although the metaverse is predicted to expand significantly over the coming years, it is still a relatively new field that is far from being stable. One reason is that all your land and assets on a metaverse platform vanish if it goes permanently down. The problem of valuation is another one that comes up. How to value a piece of land whose scarcity is made up and whose future worth is impossible to predict is a recurring problem. Metaverse land is also subject to volatile conditions because its value depends on extremely volatile cryptocurrencies.

 

Risks are high, yet the potential gains are high

Risks are high, yet the potential gains are high

Investing in metaverse properties is very risky and not at all prospective because of the countless unknowns.  It would be an understatement to say that there are significant risks. You can lose all your investments in the virtual world within a blink of an eye. However, the rapid shift to full digitalization in almost all businesses has the potential to produce significant returns on investments in metaverse real estate.

Before making any financial decisions, get as much information on the metaverse as possible. Consider all the dangers and difficulties and balance them against the potential advantages. Your choice should only be made after considering all the advantages and disadvantages carefully.

So, what do you think? Do virtual homes and the metaverse have a future? Will they keep gaining in popularity? 

There are many opportunities for new entrants as the market is still growing. Remember that con artists are out there, so do the proper research and due diligence before selecting whether to launch your company or brand in the metaverse.

 

Royex Metaverse is a leading Metaverse App Development Company in Dubai, UAE. We are at the forefront of adopting and developing the next generation of Internet technology - Metaverse. With leading Metaverse App development services and solutions, we can help you uncover new possibilities! Our Metaverse App Services and solutions let you create dynamic and realistic virtual worlds and real-world environments for better business collaboration.

The book "Metaverse - The Future Is Here" is the definitive guide to learning about the emerging technology Metaverse. You will find in-depth information on the origins of the Metaverse, its evolution, how we can access it, the different Metaverse platforms available, and the technologies powering it; apart from the basics, the book also elaborates on how businesses can enter the Metaverse, various marketing strategies, its use cases for various industries, social and legal implications, and discusses what Metaverse in the future will look like.

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