Last year, if you were asked what Gucci, The Walking Dead, Atari, and Snoop Dogg had in common, you might have been scratching your head indefinitely. By the end of 2021, what they have in common is digital real estate in a virtual world, and a brand strategy so comprehensive that they leave behind brands in the same space that don’t focus on investing in the virtual space.
Each of the aforementioned brands has established no less than 75 parcels of land on The Sandbox’s virtual world platform. This is equivalent to thousands of acres of land in our physical world today. With the rise of virtual reality (VR), a whole new world of real estate is taking shape.
Whereas before, people could only invest in tangible property they could see and touch, now they can buy and sell property anywhere, be it in a fictional world (Metaverse) or the real world.
As in normal real estate, in real estate, a property can be bought, sold or developed, and its owner can rent it out to others. Virtual real estate transactions do not have any of the hassles of traditional real estate, such as in-person travel to find properties, handling transaction paperwork, agents, brokers, and more.
Real estate is also more flexible; for example, you can buy a piece of land in a virtual world and create anything you want, whether it’s a gaming experience, a virtual store, a digital art gallery, an event center, or a school. Certain spaces will be tailored specifically for a given VR experience, and there will be no costs for electricity, construction, or maintenance.
Eminent personalities from all walks of life are recognizing the real estate value-accretive aspects of Metaverse, as well as the fully immersive experience of Metaverse, offering customers a new dimension to enjoy the brands they love. It’s not just entertainers and TV shows that are flocking, with hotel companies such as Hong Kong-based Regal Hotels Group recently announcing their intention to partner with the University of Hong Kong to build a digital green city called Meta Green and focus on developing an eco-friendly Sustainability Virtual Society.
The desire to acquire these digital assets is also at an all-time high as a series of virtual properties are snapped up by consumers. In January, The Sandbox released another 156 lots, which sold out in two seconds. Famous NFT giant Bored Ape Yacht Club has offered 55,000 land deeds for sale in their newly announced Metaverse called Otherside. Even if users hadn’t entered the land, the titles sold out in a day, with a total of $350 million in sales. With virtual land deals sold out at this rate, as the average investor is undoubtedly taking a second and third look at the Metaverse, an inevitable sense of FOMO is developing.
Average home prices in Los Angeles rose 15% from 2021 to 2022, while a piece of land in The Sandbox rose 700% at the same time. A similar increase can be seen in Decentraland, as a plot that sold for $1,900 in 2017 sold again this year for $14,460, a 761% appreciation. Surprising appreciation isn’t the only thing that makes digital real estate ownership seem more favorable, it’s also easier to manage.
Still, paying $2.4 million for real estate you can only see on a computer screen is an incomprehensible concept to most people. The commercial possibilities are so evident for companies like Metaverse Group, which set the record for the largest virtual land acquisition last November by purchasing 116 parcels of land in Decentraland. As tenants like Forever 21 and Skechers work to build virtual storefronts, their decisions to develop land in the Decentraland fashion district have proven to mimic real-life investment opportunities.
By constructing virtual digital spaces in the Metaverse, building them, then selling or renting them as individual apartments, offices, stores, etc. All of this we’re facing in the Metaverse is brand new, so there’s a lot to learn and probably a lot of trial and error, not only in terms of buying virtual digital spaces, but also in terms of design-related aspects of the home.
“Not only do we have valuable virtual real estate, but we also generate recurring revenue,” commented Andrew Kiguel, executive chairman of Metaverse Group. Even with one-time sales in the millions in Decentraland, The Sandbox is still currently leading the Metaverse in terms of transaction volume, with other contenders Cryptovoxels and Somnium Space catching up.
Location remains a key factor when evaluating Metaverse real estate. Many believe that location has nothing to do with land value since in the Metaverse it is possible to teleport from one end of the virtual world to the other with the click of a button. However, Sam Huber, CEO of Metaverse advertising agency Admix, believes that “bringing in a big brand or a big project increases the value of the land around it.”
Property values can fluctuate based on factors we’ve become accustomed to – proximity to a desirable location, prestige, the attractiveness of digital “influence”. Proximity to convenient public facilities and entertainment living areas in the virtual world can sometimes be more valuable than in the real world, which means that even in virtual spaces, local proximity, convenience of living, is still important.
Buying land in a virtual world may seem like a crazy idea, and buying a Metaverse virtual property isn’t all that different from a physical property. There is still a need to do due diligence on virtual properties and analyze virtual locations and other valuable aspects such as points of interest, transportation hubs, etc.
We are currently entering the era of Web 3.0: a new world built on distributed ledgers, virtual reality, the Metaverse, cryptocurrencies, non-fungible tokens, artificial intelligence and the Internet of Things.
It is clear that the ownership of digital real estate in the Metaverse is moving forward in a huge way, so if you accept that the digital world is a trend in the future and it is also coming, it is possible to build your own exclusive space in the virtual world , become a digital citizen of the Metaverse.
Ownership of digital real estate in virtual worlds is rising rapidly. Since traditional real estate prices are higher than buyers, buying digital assets to diversify our portfolio is a good way to go. These new virtual worlds are becoming more popular every day, and not only will they continue to trend, but their value will continue to increase proportionally over time.
The Metaverse has gone beyond mere buzzwords, and its exponential growth and adoption is rapidly blurring the lines between reality and virtual reality.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/real-life-homes-overpriced-metaverse-real-estate-to-consider/
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