Choo choo! Let’s hop on the metaverse real estate investing express. Curious about buying property in a virtual world? Then this guide is for you!
We attempt to provide all the information that anyone who wants to invest in metaverse real estate needs to know, including what it means to be a digital landlord and how much rental income can be generated. We also have some advice on which locations are best for investors, as well as what sort of returns can be expected.
What Exactly is Metaverse Real Estate?
Metaverse real estate means buying virtual “plots” of land (properties) in the metaverse, an online platform where players can interact, play games, host events, and buy/sell land. Metaverse real estate, just like physical real estate, can appreciate, depreciate, and make passive income via rent.
How Much is Real Estate in The Metaverse Worth?
The price of real estate in the metaverse is determined by the demand for it, just like in the real world. But because the metaverse is a virtual world, there are a few other factors that might affect its value.
The supply of land can be an issue since there are only so many “spaces” to build on within a certain metaverse. Like regular real estate, location is the most important factor of a profitable investment. If your virtual land is close to games, shops, or celebrities’ houses (yes, this is a thing), then your virtual property may increase in price.
The price of a property in the metaverse ranges greatly from a few thousand dollars up to millions. This is entirely dependent on the metaverse you’re in and your property’s location.
Benefits and Risks of Investing in Metaverse Real Estate
The obvious benefits of purchasing a property in the metaverse are the same as any real estate investment: you’re getting a return on your money, and you can leverage it to make more money. However, there are some unique advantages to buying a home in the metaverse that make it especially appealing for investors.
Benefits
- You don’t have to worry about maintenance or upkeep costs. There’s no need for an expensive crew or contractors!
- The transactions can take far less time than in real life (no title companies to wait on!)
- Your “tenants” won’t be calling you about needing to fix a toilet in the middle of the night.
- Metaverse real estate investing can be considered passive real estate investing which provides passive returns, meaning you can kick back and collect rent.
Risks
- As of now, metaverse real estate investing is mostly speculation, without a lot of real-world application.
- Investing in a certain metaverse that doesn’t take off could mean losing the entirety of your investment.
- Passive income may be hard to come by unless you’re in a very good location.
- With an unlimited amount of metaverses, digital real estate has an infinite supply!
How to Purchase Metaverse Real Estate
Purchasing metaverse real estate can be a little complicated if you’re unfamiliar with blockchain technology. Most metaverse land is bought via cryptocurrencies, so you’ll either need to buy or convert your crypto into a usable coin before you get started. Popular cryptocurrencies in the metaverse are Ethereum, MANA (Decentraland’s currency), and SAND (Sandbox’s currency).
Once you have the right cryptocurrency, buying pieces of land on the metaverse can be as easy as clicking a button or making a bid. Unlike regular real estate transactions, there is no real estate agent or title company involved, since the record of sale gets recorded directly on the blockchain and your “title” usually comes in the form of an NFT (non-fungible token).
Top 5 Places to Invest in Metaverse Real Estate
Now you know what metaverse real estate is, how much it costs, and how to buy digital real estate in the metaverse. The next question? Which metaverse is worth investing in? Here are some of the most popular choices as of 2022:
1. Sandbox
Sandbox is one of the most popular metaverse to buy land in. Sandbox’s metaverse already has land owned by big names such as Warner Music Group, Atari, Ubisoft, and Gemini. With Sandbox, you can create an avatar, attend events, and buy property. But, as such a popular metaverse, it will come at a higher price.
2. Decentraland
Decentraland is a fully immersive experience where you can play games, interact with other metaverse users, and buy and sell land. Decentraland houses more than 90,000 individual parcels, many of which have already been bought by early adopters of the metaverse/cryptocurrency movement. As one of the oldest metaverse platforms around, Decentraland boasts more credibility than most other virtual worlds.
3. Second Life
Remember on The Office when Dwight makes a life-like online character in the game Second Life? If you do, then prepare to have your own little Scranton-inspired story because you too can buy a piece of the Second Life universe. In Second Life, you can buy land, customize your “home”, and invite your virtual homies over. You can even sell it for a profit or rent it out and become a virtual landlord.
4. Earth 2
Earth 2 is exactly what it sounds like. The team’s goal is to make a virtual, 1:1 scale of planet earth, only this time the pale blue dot will be on the interwebs. Land on Earth 2 can be owned, bought, sold, and completely customizable. Now is finally your chance to become the King or Queen of Iowa (just virtually). All the corn will be yours!
5. Bloktopia
Bloktopia is a relatively new metaverse developed in the Unity Engine. In essence, it’s a skyscraper with twenty-one different levels (paying homage to the twenty-one million Bitcoin minted). In Bloktopia, you can play games, build networks, and earn revenue. There are over two-hundred virtual stores, an auditorium for seminars, a gaming floor, and event spaces. Depending on where you buy in Bloktoia, you could see your land appreciate if this metaverse becomes the learning hub for all those interested in cryptocurrency!
Key Takeaways of Investing in Metaverse Real Estate
There are many ways to invest in metaverse real estate, including buying land and building on it or renting your land for others to build on it. But, you’ll need to be extra careful when choosing which metaverse is the right one to invest in. Before you buy a plot of virtual land, look into who is investing in that metaverse, what benefits they bring that other virtual spaces don’t, and the stability of their cryptocurrency. You won’t want to sell your digital real estate just for it to be worth pennies as soon as you collect your crypto!
If you’re still unsure about investing or want to learn more about digital real estate, check out our article that answers every investor’s burning question; is digital real estate legit?
Metaverse Real Estate FAQs
There are a few questions that have come up over the years regarding metaverse real estate. We’ve answered them here so you can make an informed decision as to whether or not it’s something you want to invest in.
Real estate in the metaverse means buying digital plots of land, or properties, for cryptocurrency and either holding them for long-term appreciation or making cash flow by renting them out for advertising and events. In the digital world, the possibilities for passive income are endless!
Due to there being multiple metaverses, prices for a digital investment property can range. You could pay a few thousand dollars for a property or millions depending on which metaverse it is in, where it’s located, and its potential to make revenue in the future.
The metaverse may be too early to tell whether or not it’s a worthwhile investment. But, early adopters may see big appreciation gains if the technology ends up being used by the general public.
In the metaverse, you can use your property as an advertising space, an education hub, a virtual billboard, or anything in between. You can rent out your digital land to advertisers or for events, allowing you to be a passive landlord no matter where you live.
There are a few great metaverse courses to learn more about digital real estate. A few top online classes are; Metaverse Masterclass, Certified Metaverse Expert Course, and Virtual Real Estate Investing in The Metaverse.
