Virtual reality real estate is now one of the most in-demand assets available. According to studies, virtual land sales in 2021 topped $500 million. To add to that, around $85 million worth of virtual property was sold in January 2022 alone!
It’s projected that real estate sales in the Metaverse will reach nearly $1 billion by 2022, making it an exciting asset class for investors worldwide. The question now is: Do you still need the services of a land broker to acquire property in the Metaverse? Let’s find out. But first, let’s learn a little bit more about what the Metaverse is.
What Is The Metaverse?
In it’s most basic form for a beginner learner, the Metaverse is a three-dimensional, interactive digital platform where users can engage in a very realistic and natural way with one another, digital objects, and AI-powered avatars. Users can navigate between virtual worlds, and multiple platforms can cohabit in one ecosystem, allowing virtual games and collaborative spaces to operate on one platform.
The Metaverse is likewise democratized, with no single entity, person, or body controlling it. Anyone can invest in it and harness the available space, technologies, and settings to their advantage. The Metaverse relies on innovations like virtual, augmented, and mixed reality (VR/AR/MR) and blockchain, artificial intelligence (AI), 5G, and cloud computing to realize these functionalities.
Buying Land In The Metaverse
The Metaverse can become a virtual duplicate of our actual world, where Metaverse users can commercialize goods and services and earn money through virtual settings. Buying land in the Metaverse, where purchasers or renters can create monetized properties, is a popular method.
Virtual “parcels,” which are blocks of 3D space where programmers can overlay elements, design VR environments, create experiences, build interactions, and so on, are individual Metaverse real estate plots. A Metaverse’s democratized governing body will typically select how new parcels are generated, allocated, and made available for investment to property investors.
The Sandbox, Decentraland, Crypto Voxels, and Somnium are the four Metaverse marketplaces where most virtual land is sold these days. The parcel exists as a non-fungible token, or NFT, a blockchain-based non-transferable asset type. The buyer will “own” complete rights to the land once ownership of the NFT is passed to them. And just like in real life, they will be able to resell it, develop virtual property on it, lease it out, and so on.
Do You Need A Land Broker To Buy Land In The Metaverse?
According to Miguel Kiguel, the founder of The Metaverse Group—a real estate company that facilitates transactions involving virtual real estate—he doesn’t see the need for real estate agents or land brokers if you want to buy property in the Metaverse, however, just like the real world, a land broker may be able to identify positives and negatives that the average investor could miss.
As the Metaverse world develops and more assets emerge, the services of a digital land broker will become more valuable. This is because land brokers can be well-versed with the virtual community and can guide interested parties through the steps of the acquisition process. Whether or not we like it, it seems that virtual land sales are here to stay
“I do think there is going to be a level of expertise developed but it’s going to be a different skill set than the types of brokers available in real estate today,” said Kiguel in an article on Storeys.com. That’s not to say that a real world broker cannot transition into the virtual world. As we approach new technologies, it will undoubtedly introduce new opportunities to real world brokers in the virtual world.
How To Buy Land In The Metaverse?
Purchasing land in the Metaverse is not as simple as buying land on the internet. It’s crucial to do your due diligence, as with any other investment, and be sure that the marketplace you’re buying from is credible and has a good reputation. Virtual land sales will equate to over 1 billion dollars by the end of 2022, so just how do you buy land in the metaverse if you are interested?
There are two ways in which you can buy land in the Metaverse:
Using A Platform’s Direct Marketplace
Every metaverse platform that sells real estate has a marketplace where you may make a purchase. They differ in configuration from one platform to the other. Still, they all contain information such as the parcel’s exact location on the Metaverse’s map, and the asking prices of available properties. They also offer a notion of where that property is concerning business districts, popular sites, roads, virtual mass transit, and other points of interest. The description will also list any changes made to the property. You’ll get a great deal of information about the property’s geography and possible application based on what’s around if you use the platform’s marketplace.
Using A Third-Party Marketplace
You can acquire metaverse real estate on a couple of major third-party marketplaces. OpenSea and Non-Fungible.com are perhaps the most popular ones. Both allow you to view past property sales and properties that are now for sale. Both sites also have numerous metaverse platforms listed at any given moment, allowing you to purchase from different platforms or use the data these sites provide to filter your options.
The most significant benefit of using a third-party marketplace is all of the data you have access to. When you have access to a property’s whole transaction history and that of its neighbors, you can determine whether the virtual land is worth what the seller is demanding. But keep in mind that no two virtual real estate plots are the same. Therefore the pricing will always vary.
The Future Awaits But Should You Jump Right In?
There are weaknesses in the system, so the digital world isn’t all glamour. As a result, before you invest, you should be aware of the numerous downsides. The following are some of the flaws you may encounter when dealing with land in the Metaverse:
1. No Regulation
The digital land industry is unregulated and uncontrolled. The market is vulnerable to all types of exploitation as a result of little or no government involvement. You could lose your money to digital real estate manipulators if you’re not vigilant.
2. Cyber Insecurity
Everything on the internet is vulnerable to cyber threats. Hackers will do anything they can to gain access to systems in order to change your information, manipulate your account, and yes, even take away your money. In the blockchain real estate market, this risk is frequently more prominent. As a result, if you’re going all out to invest, you’ll need to take cybersecurity precautions.
3. Lack Of Predictability
The digital realm is vast and untamed. Because there are so many options, it’s difficult to predict what will happen next. Due to their similarities and complexities, various digital real estate developments are currently at odds. As a result, staying on top of trends and determining which properties truly make digital real estate is becoming increasingly more difficult for investors.
Getting In Early
As we move further into a digital future, it’s also important to remember that some things will never change. The need for food, water, and shelter will always be there. If you’re looking for a physical piece of land to live on or use as an investment, Hansen Land Brokers is here to help. With 30 years of experience specializing in land for sale and purchasing agricultural, development, and investment land, Hansen Land Brokers is a name you can trust. Contact us today for more information!