The Metaverse is still new. That’s why investing in anything Metaverse-related is a huge risk. But with that risk comes the potential for some serious rewards.
In the real world, the real estate market is simply huge. According to some estimations, it’s worth more than 3.8 trillion. For decades and decades, it has been one of the most stable and lucrative investments around.
Now, imagine if you could get in on the ground floor of a new real estate market. One that is still in its infancy. Where the potential for growth is literally off the charts. That’s what investing in Metaverse real estate is all about.
What is the Metaverse Real Estate Market?
So there’s real estate in the Metaverse? How does that even work?
There’s virtual land in the metaverse and a piece of real estate is a parcel of that land. On a surface level, they’re nothing more than pixels.
However, when you dig a bit deeper you see that they’re programmable spaces in VR platforms, where people could play games, socialize, create and sell NFTs, and attend meetings.
With the increasing adoption of the Metaverse, the digital real estate market is expected to expand as well. The value of virtual real estate is expected to have a CAGR of over 31% from 2022 to 2028.
Should You Buy Metaverse Real Estate?
The answer to this question depends on you. If you’re asking can you make money from it? Then the answer is yes, investing in Metaverse real estate can pay off in a major way.
The interest in the market spiked when Facebook changed its name to META in late 2021. While investing in virtual land might seem strange, it’s quite similar to traditional real estate investing.
There are two specific factors that make this investment interesting to potential investors:
1. Virtual property is in limited demand, which means that there is a possibility of a high ROI.
2. Every parcel in the Metaverse is completely unique, which makes it a perfect asset to trade or sell.
Of course, there are certain risks that come with any investment. For instance, the interest in the Metaverse might fizzle out and the prices for virtual land could drop significantly.
Where Can You Buy Real Estate in the Metaverse?
There are a few platforms where you can buy real estate in the Metaverse. A vast majority of the land is owned by just a few companies and their investors.
Here’s a quick overview of the most popular Metaverse real estate platforms:
- Cryptovoxels is a virtual world, similar to Minecraft, where you can buy land and build on it, using customized monochromatic blocks. Want to own a parcel of land in Cryptovoxels? It will cost you around $5,000 per lot. And that’s just the average price, some go as high as $10,000.
- Decentraland is a VR platform that uses the Ethereum blockchain. It’s one of the oldest and most popular platforms in the Metaverse. Ownership of parcels is given through LAND NFTs with the specific coordinates and size of the land.
- Sandbox currently dominates Metaverse real estate, with the ownership of 62% of the entire market. A piece of land, on average, costs more than $11,000, with premium lots going up to $30,000.
Big Risk Means Big Potential
Metaverse real estate is still in its early days. And while there are some risks associated with this type of investment, the potential rewards are huge. While saying “do your own research” may be cliche at this point, it’s still the best advice we can give you.