Individuals can buy and sell virtual parcels of land within the metaverse, and the prices are at par with the physical world. In the wave of merging the physical and virtual, metaverse platforms and their capabilities can play an instrumental role in this merger. Individuals can own a piece of land in the metaverse through popular platforms such as Sandbox, Decentraland, etc..
NFTs represent digital assets that an individual can buy. In the real estate industry, anyone can buy a land NFT, which is equal to owning a piece of land or an establishment in the metaverse. This creates a new market segment in the real estate industry, which has boomed in recent months. In addition to changing how we interact with virtual real estate, NFTs have the potential to change how we interact with physical real estate as well. Let’s learn more about NFTs - Metaverse and their association with real estate.
How NFT and Metaverse are Changing Real Estate?
A piece of land in the metaverse game Decetranland sold for a whopping $913,000. This clearly shows the potential of the virtual real estate market. As more and more people will start investing in this industry, it’s possible to see more such or even higher investments in real estate.
The shift to metaverse comes when physical land is already scarce. We understand that comparing the value of land in our world to land in the virtual world isn’t right. But looking at it from a purely monetary perspective, there can be a time when investing in physical real estate is the same as investing in virtual real estate. This is the merger that we are hoping to achieve one day.
In the metaverse, we buy parcels of land. These parcels represent the dimension of the land, and there can be different-sized parcels on sale. Until 2022, there were 622,436 parcels of land in the 10 largest metaverse platforms.
The metaverse space is not just land buying and selling; instead, communities are built within the virtual world. People here can communicate, work together, enjoy, play games, and whatnot. For some, moving to the metaverse has become a way to escape from the physical world.
NFTs are responsible for bringing a higher level of security, transparency, and authentic ownership into this industry. The great thing about this is that we can have NFTs in the form of land. Each parcel of land can be converted into NFTs. With NFTs and metaverse involved, buyers and sellers can complete transactions easily without having to involve a broker.
In 2021, two brothers paid $4.3 million to buy virtual property in Sandbox, a metaverse platform.
How to Buy Land in the Metaverse?
Buying land in the metaverse through NFTs or virtual currencies is easy, but you need to take the right steps.
- Deposit Funds
NFT or digital currency exchanges happen through crypto exchanges, which are of two types, centralized and decentralized. As the name suggests, the centralized ones have a central authority, and any single power does not govern the decentralized ones.
Some examples of exchanges are Binance, Coinbase, Gemini, etc. Here you can convert the fiat currency into cryptocurrency. The most popular choice is Bitcoin, but you can also buy ETH or any other compatible currency. However, you might have to swap the cryptocurrency you buy now with the one compatible with the Metaverse platform.
Creating a separate email account for all your crypto transactions is always better. On the exchange, transfer a small amount of funds first and let it sit.
- Create Your Digital Wallet
A digital wallet is required to buy land in the metaverse. This digital wallet will be connected to the exchange from where you decide to buy the cryptocurrency. For your digital wallet, choose MetaMask, as it's the most popular and is compatible with all Metaverse platforms.
Visit MetaMask’s website and create an account there. Make sure to keep the secret key and password to the wallet safe and private. Once the wallet is up and running, send the funds from the crypto exchange to the wallet.
- Look for Land
In 2023, the position is such that land in almost all the metaverse platforms is already sold. So now, what you can get is land from secondary sellers who have listed the land they would like to sell. Even from secondary sellers, it’s a safe bet to buy land in the popular metaverse.
However, the volatility and unpredictability of the crypto market do force everyone to give it a second thought. However, given the past performance of the metaverse industry, it’s safe to buy land in the metaverse. Make sure that the platforms are encrypted and have smart contracts for executing the operations.
Some of the best metaverse platforms are Sandbox, Decentraland, Cryptovoxels, Worldwide Webb, and Somnium Space.
- Create an Account on Marketplace
Assuming that you choose Sandbox to buy metaverse land, begin by creating an account or signing in to an existing one. Connect the MetaMask wallet and then click on buy land.
After clicking on Buy Land, you will be redirected to the OpenSea.io marketplace. There you can filter land according to prices and select the one you wish to buy. By clicking on a piece of land, in the thumbnail form, you can view the location on the Sandbox map.
If the location of the land suits your requirements, check your wallet balance. Remember that to buy a piece of land, you also need to pay the gas fees. The amount of gas fees depends on the platform and the cryptocurrency you are using to buy the same.
You can make an offer on the land or buy it immediately, depending on the configuration set by the seller. Once you make this choice, the wallet will show you the final amount to be paid, including the gas fees.
Once the payment is complete, the bought piece of land will appear on your Sandbox and OpenSea accounts. On Sandbox, you can also build on your land or give the buildings on rent.
Make sure to buy from a credible and authentic platform. On trusted platforms, everything is executed with smart contracts and blockchain technology. Don’t let the fear of not buying land in the metaverse motivate you to make hasty decisions. Always use caution and plan every step.
Future Scope of Real Estate in Metaverse
The future of Metaverse is incredible, with one market study estimating the market size to cross $825 billion by 2028. The CEO of Portion, who bought $1.2 million worth of land in the metaverse, believes that the property value in the physical world will transfer to the virtual world. Having said that, there is nothing we can say or show to prove that the metaverse and NFT industry is flawless.
Even with everything happening now, these markers may not be as stable as we want them to be. So, even if the market value of the metaverse has tremendous value and potential, the best bet is to move ahead with caution. Do your research before buying land or other assets.
Given the trust and speed with which big companies like Facebook and Microsoft are investing in this industry, we can surely hope for them to be correct.
If the metaverse and NFT industry become instrumental in the next 20 years, just as the internet has become for us today, it’s a good time to start investing right now. Such investments and confidence from big IT companies is likely to depict a healthy future for the virtual world in the coming years.
Conclusion
The metaverse and NFT industry is gradually growing to become a large-scale operation. With zero territorial boundaries and definitive centralized control, the metaverse and NFT platforms are helping people earn a substantial income from the sale and purchase of digital assets. However, buying land in the metaverse with cryptocurrency or in the form of NFT requires prior research and planning. Always take an expert’s opinion before investing.
At Intuz, we help organizations build their virtual assets and products powered by blockchain technology. We help companies build blockchain applications for their business growth. Contact us to know more about how we can help you build your next application for the virtual world.
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