Metaverse Real Estate: What is it and how to purchase it?
The realty sector is no longer confined to physical lands; Metaverse realty is the latest buzz, claiming headlines in the non-fungible token sector. One reason for this trend is the restricted availability of virtual plots. The rarity of these pieces of property makes them an attractive opportunity for people interested in crypto investments.
The idea of the Metaverse is still a disjointed concept, and that’s primarily because it’s still a developing digital ecosystem with limited utility. However, the same notion does not exist in web3 or crypto fans, as they see innovative opportunities and possibilities in the Metaverse. Although most people find it puzzling to purchase virtual plots, the buzz is going strong and is gaining momentum.
Metaverse real estate: What does it mean?
It basically refers to land plots or parcels in the virtual realm where these parcels of land and represented in pixels. Because of blockchain technology, ownership of these plots is absolute in the Metaverse. These virtual real estates are programmable digital environments in which users can play games, socialize, attend conferences, and participate in various other virtual activities.
In this space, individuals engage in their avatar forms. Users can enter these Metaverse worlds using a computer screen or virtual reality goggles such as Meta’s Oculus.
From celebrities to big companies, people are investing in this technology before they are sold out. The most significant metaverse realty investment to date is by crypto-based investment firm Everyrealm. The company paid a staggering USD 4.3 million for 792 plots of virtual real estate in The Sandbox.
Why does one buy metaverse real estate?
One significant reason to buy metaverse realty is its provision for socialization. In other words, it facilitates socialization across the globe. One can employ virtual reality to connect, communicate, play games, and explore the digital realm with other users. Landowners can earn income through their real estate by charging for access to their property or by trading in NFTs.
Additionally, brands can advertise and promote their products by using digital properties. They can use to provide exceptional and unique customer experiences. Users can develop, rent, or flick metaverse properties similar to physical plots.
Moreover, people believe that the valuation of their virtual properties will rise over time, thus considering it a long-term investment. Already we have seen significant increases in the cost of these properties. Prices have surged an incredible 400% to 500% within the last year. Given the high ROI, metaverse realty is definitely worth purchasing and holding.
How much does a metaverse property cost?
The average cost of the land parcel across the four major sites increased twofold to 12,000 USD across a period of six months last year, as per the Republic Realm report. Furthermore, the valuation of the LAND token has also increased to 15,000 USD at the beginning of 2022.
A single parcel in the Sandbox is equivalent to 315 feet of buildable space in the real world, measuring 315 feet long, 315 feet wide, and 420 feet tall. The size of plots ranges from 50 sqft to 400 sqft on each level.
Moreover, location is one of the prime components that impact the cost of property assets in the Metaverse. Two other aspects that influence the worth of metaverse reality are:
- Size of the plot
- Metaverse platform’s popularity
How does one go about purchasing virtual realty properties?
One can buy realty properties through sites such as Decentraland. Likewise, Sandbox and Cryptovoxels can also be used to purchase the properties. Firstly, install the Metamask Chrome extension (digital wallet). Next, add cryptocurrencies to the wallet. For instance, you can add SAND (for Sandbox-based plots) or MANA (for Decentraland plots) to explore and purchase properties. To purchase a plot on Decentraland or Sandbox, follow the steps below:
- Go to The Sandbox web browser.
- Select “Market.”
- View the left panel, scroll down to NFT Type, and click “Lands.”
- Next, choose the apt filter that best meets your requirements (Example: Newest, Oldest, Lowest Price, Highest Price).
- Choose the land plot that you like and click “Buy.”
- You’ll be redirected to the property listing. Link your wallet to the platform by clicking on the wallet symbol.
- Make an offer by clicking the option “Make Offer.” You’ll have to outbid the highest offer to catch the seller’s attention.
- Next, enter the amount of SAND you want to offer (make sure you have enough SAND in your Metamask wallet, or you’ll get an error message saying “Insufficient SAND to make offer”).
Note: SAND can be purchased and transferred to your Metamask wallet using Binance or KuCoin.
- Select whether your offer will last three days, seven days, or a month. You are free to select your own date. Make an offer by clicking the Make Offer button.
- Your Metamask wallet will appear, prompting you to press the “Sign” button (to validate your intention to make an offer on the OpenSea listing).
- Finally, your deal should be visible in the Offers section. If your offer is accepted, you will be notified via email.
- Go to the Decentraland browser extension.
- Go to “Trade” and select “Start Browsing” from the drop-down menu.
- Sign In is the first option, followed by Connect.
- Select Metamask from the drop-down menu.
- Select “Land.”
- You’ll be taken to a website with a map of Decentraland (all the plots that are on sale are highlighted in light blue).
- Choose a plot of land that meets your needs in terms of pricing and location.
- To buy the land, click “Buy” and follow the directions.
Where can one purchase metaverse realty properties?
One can acquire these properties in a wide assortment of metaverse-based games. You will almost certainly have to purchase a parcel on the secondary non-fungible token marketplace. However, before you rush to purchase a plot, here is a list of some of the well-known hotspots (including Metaverse game sites) that you can check out.
Loopify, an NFT collector and influencer, created this site, which gives a pixel-themed metaverse experience. This fantasy MMORPG lets you fight and battle creatures, build weaponry, and do more such tasks. The site is typically divided into numerous non-fungible token collections. However, by acquiring Founders Plot, one can perform various tasks such as building homes, leasing them out, and many such activities.
This is a digital universe with its own currency and economy that is available for free. Users in this space can personalize their assets, avatar, and experiences. This game is a complete package of virtual reality, and one can play this game on mobiles, PCs, etc., with a VR headset.
In the Cryptovoxels universe, “Origin City” is a virtual space where “The Corporation” owns the streets and individual players possess the parcels. The players/users can perform several tasks, such as adding/removing blocks and features and also developing something new on top of their parcels. Users may also assign their parcels as “sandbox parcels,” letting other users build on them.
In this virtual realm, users can create and commercialize their game experiences. This platform integrates three products:
- VoxEdit – lets design and animate 3-Dimensional objects
- Game Maker – let’s create incredible 3-Dimensional games for free
- Marketplace – lets one upload, publish, and sell their non-fungible token works
Note: Players can purchase and customize LAND with games, objects, and interactive experiences.
Users can traverse an expansive digital landscape and purchase virtual parcels in this 3D virtual space. One can play this game without a cryptocurrency wallet, too. However, one must buy the wearables. Furthermore, one can develop the plot they acquired with the help of the Decentraland editor.
What are the best metaverse stocks to buy?
Below are the leading metaverse stocks that are worth investing in 2022:
Firstly, this is a cryptocurrency and not a stock that has great potential and created a buzz among the public. This gaming platform makes use of cutting-edge technology to enhance users’ experience. Lucky Block makes sure that geographical boundaries are removed by relocating the gaming process to the blockchain, enabling anyone worldwide to engage on the platform.
Furthermore, Lucky Block’s technology is far more transparent than traditional systems since all transactions are viewable on the public ledger. The platform makes use of LBLOCK, a native token that aids in the platform’s operation.
LBLOCK was listed on PancakeSwap in January 2022 and quickly went on a massive bull run, reaching an all-time high of $0.009617. Currently, the market cap of this cryptocurrency is nearly $750 million, which is outstanding for such a young company.
Since several updates are in the process, this is an excellent chance to get Lucky Block at a discounted price. The roadmap of this cryptocurrency consists of strategies for metaverse integration and the creation of crypto-based games. Moreover, with over 55,000 members in Lucky Block’s Telegram group, these enhancements are certain to be well-received, suggesting that another bull run is on its way.
Meta (formerly known as Facebook) is investing in the development of immersive technologies. Moreover, the Oculus Virtual Reality headset is a worthwhile and productive product on the market. Additionally, the company is working on a supercomputer based on AI, which shows its investment in cutting-edge technologies.
Nevertheless, the company’s major revenue comes from its social media networks, which helps them garner a huge user base. Meta Platforms has outperformed the market in terms of stock price since going public in 2012.
However, the company has struggled lately due to increased competition from TikTok. As a result, Meta has reported a profit loss and a decrease in its stock value. Between September 2022 and March 2022, the stock fell by roughly 40%. Regardless, Meta Platforms remains a high-growth stock with significant upside potential in the Metaverse’s future.
Launched in 2004, this company is a prominent gaming company. Nonetheless, turning towards Metaverse has only increased its popularity among investors. As a result, it now has over 47 million active daily users.
In recent years, the platform has hosted a number of virtual events and concerts, giving them a significant head start in the Metaverse scene. Thus, Roblox is currently one of the best Metaverse stocks to invest in.
On the other hand, Roblox will benefit from the Metaverse’s expansion in the next years if it can expand its target demographic.
This semiconductor company is a perfect example of Metaverse stocks. Moreover, Nvidia chips are already present in Meta Platform’s future supercomputer. Also, the Artificial Intelligence Research SuperCluster, which will be crucial in the development of Metaverse technology. The company has also made investments in 3-dimensional technologies, such as Omniverse.
Regardless of its connection with the Metaverse, Nvidia could be a fantastic investment opportunity for an investor. The company has already experienced substantial growth in the areas of video gaming and big data. When the Metaverse scale is considered, Nvidia becomes a top-rated stock buy.
Nvidia is also one of the finest Metaverse stocks because it pays a dividend, according to us. At the time of writing, the corporation was offering a running yield of just under 0.60 percent. Nvidia’s stock has increased by 980 percent in the last five years. As a result, it’s one of the NASDAQ’s best-performing stocks.
Autodesk is a prominent company that creates and manufactures engineering software. AutoCAD and Revit, two of its products, have become standard tools for architects and structural engineers to sketch and model their designs.
On the other hand, animators and visual designers rely heavily on AutoCAD’s 3D software tools outside of the construction industry. The Metaverse’s structure is a natural fit for the company’s line of products designed specifically for virtual reality and 3-Dimensional graphics.
Initially, Autodesk offered a one-time purchase option. Users can continue to use the same version, only purchasing a new product if an upgrade is required. On the other hand, Autodesk has since transitioned to a subscription-based model requiring an annual license.
This strategy has assisted the organization in establishing a consistent revenue stream, resulting in increased revenue. AutoDesk was the first company to list on the NASDAQ exchange in 1985, and the stock has provided investors with significant profits since then. In the last five years, the stock price of AutoDesk has increased by nearly 150 percent. Based on these criteria, Autodesk is one of the best Metaverse stocks to buy in 2022.
This is another company that is expected to play a significant part in the Metaverse’s progress. The platform provides numerous options for developing software applications. Designers, architects, and engineers can employ this software to develop 3-dimensional content for the digital realm, which now includes the Metaverse.
The company is operating on numerous sit to build new Metaverse universes, including Insomniac Events. Unity Software is also heavily invested in the game industry. Since going public in 2020, the stock price of Unity Sector has increased by roughly 45 percent.
Like many other IT firms, Unity Software is under pressure from investors. Shareholders are concerned about Unity Software’s recent acquisition of visual effects company Weta Digital, particularly given the company’s need for funds to complete the transaction. However, some experts believe that Weta Digital will be a profitable business for Unity Software in the long run.
Unity Software has formed a few additional significant partnerships outside of the Metaverse industry. The company announced a partnership with eBay in December 2021 to provide a 3D view solution to select sellers. It also revealed a new partnership with Hyundai Motor Company to construct a digital-twin factory to improve logistics.
This is one of the world’s largest cryptocurrency exchanges that benefit greatly from Metaverse. As one of the top crypto exchanges in the world, Coinbase easily earns a spot on our list of the finest Metaverse stocks to buy in 2022.
In addition to trading virtual assets, the platform provides credit cards, interest accounts, and other crypto-related services. Furthermore, through its new marketplace, the platform allows you to invest in NFTs, allowing Coinbase to benefit from the Metaverse’s growth.
After becoming a publicly traded company in April of that year, Coinbase shares reached an all-time high of $430 in November 2021. However, the stock’s value has dropped by nearly 65 percent since then. This is primarily due to the sharp decline in bitcoin values, which resulted in fewer transaction volumes and income for Coinbase.
Coinbase stock is expected to rise in tandem with the digital asset market as it regains traction. And best of all, you can get this top-rated Metaverse stock at a discount based on current prices.
What are the prospects for investing in metaverse real estate?
There has been an unusual increase in the metaverse real estate purchase since Facebook rebranded to META and turned towards Metaverse in the 4th quarter of 2021. Individual and corporate investors are rushing to purchase virtual realty properties while they are still available.
As per reports, virtual plot sales touched a new high of USD 500 million in 2021. And it is anticipated to exceed USD 1 billion in 2022. Furthermore, as investors become more interested in metaverse realty, its value is expected to increase at a 31.2% CAGR (between 2022 and 2028).
The companies investing in digital real estate aren’t necessarily individual investors or hedge funds. The number of high-value properties that began as bare virtual plots and evolved into luxury hotels in bustling virtual streets, metaverse offices, casinos, virtual stadiums, and concert venues hosting multi-million dollar events will grow in the future.
Moreover, in case the virtual land boom fades, investors who build realty properties in metaverse platforms such as Sandbox, Decentraland, or Roblox may gain substantial profit.
Purchasing virtual land may appear to be a ridiculous idea at first. Nevertheless, we should keep in mind that several people asked internet’s and social media’s potential in the past, even though it would seem completely ridiculous now. Experts estimate that the Metaverse will grow into a fully functional economy within the next five years, offering us a concurrent virtual experience similar to that of social media channels.
Whether you wish to learn about NFT, Blockchain, Web3.0, Metaverse, or other emerging technologies, we have the vital resources that will enlighten and help you make an informed decision.
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