Just when you think things in the Metaverse can’t get any wilder, many top luxury property investors want virtual real estate.
The Metaverse will revolutionize the way we interact with each other in a virtual environment. But that’s just scratching the surface of what it will do for us over time. Top investors are already catching on to the Metaverse’s potential, and they’re looking to get a head start on purchasing virtual real estate.
According to CNBC.com, Metaverse real estate sales have reached $500 million. They could double this year, potentially hitting $1 billion by the end of 2022. The Brand Essence research reports that the Metaverse real estate market growth will compound annually at a rate of 31%.
For example, one plot of virtual land in Decentraland sold for nearly $2.5 million. Why would someone drop that much cryptocurrency on an intangible piece of property? Because this particular digital real estate is considered the “fashion district” of Decentraland. Luxury brands and potential higher-end retailers can establish their brands in the virtual world before entering physical retail spaces.
What is virtual real estate?
Digital real estate is sometimes regarded as a subcategory of digital assets. Anything that exists online and has value is considered a digital asset. Traditionally, domain names, social media accounts, and well-known websites can be digital assets. Digital assets like the websites above, social media accounts, and domain names don’t have physical characteristics.
When you purchase digital real estate, you’re not just buying the property; you’re purchasing the space surrounding it. You can develop your virtual property into anything you want. If someone else buys the land surrounding yours, they could put up shops, buildings or even theme parks.
What does this mean for the future of Metaverse investing?
Above all, what makes digital space valuable? Like real estate, various factors determine its value. Digital real estate is the future, and investors are already on board. Currently, investors are taking advantage of the “Big Four”:
In the current “land rush,” a slew of businesses, big names, and investors are rushing to stake their claim in the next digital Manhattan or Monaco. Metaverse land value will determine what property owners do with it; creating a popular attraction, museum, or feature.
There’s no way to tell what the future certainly holds for virtual real estate. In my opinion, I prefer to pour my money into helping people in the real world.
The choice is yours.