Virtual Real Estate: Explained in Detail
The metaverse real estate is much different from the real estate in the actual world. Even in digital properties users can perform all their regular tasks like shopping, buying groceries, playing games, or even attending virtual concerts without moving from the comfort of their homes.
Virtual Real Estate in the metaverse has actual houses that you can walk into, and even shops. All these properties are for sale over the web at reasonable prices.
One question that comes here is why buy real estate virtually? Let’s answer it ahead
What is Virtual Real Estate?
Virtual Real Estate envisions itself as an investment option where you can make money by modifying your digital property and selling it further on lease. With the increasing online presence and the boom of metaverse, many international companies see a very bright future in virtual real estate. Experts anticipate that in the coming years, online assets will surpass physical assets in terms of value.
A very basic example of how the virtual real estate system works is- If someone owns a piece of land and has modified that piece of land into an office building where people can work and will have their own avatars; this property can be easily leased to a company willing to expand into the metaverse and the owner would collect the rents out of it.
This just works like real estate in the real world where people rent their properties and collect rent every month.
With an increase in the prices of cryptocurrencies, the value of these virtual real estate NFT properties increases automatically too. The better the area your land is in, the better value you will get for that property.
Yes, you read it right, virtual property is also based on locations surrounding it. Just like the real world, even in virtual real estate, you have to pay a higher amount for properties surrounded by better amenities than the places in remote regions.
In the virtual world every property is listed as a monopoly board where you can buy these properties by exchanging cryptocurrencies based on its locations. There are different metaverse that own different lands and investors can buy these lands with their local currencies. For example, if someone wants to buy a property in SandBox, they will purchase it via SandCoin - the local currency of Sandbox.
There are many examples of people paying crazy prizes to buy properties in the different metaverse. One of the craziest examples is of a person who spent almost $450,000 to buy a virtual property besides that of Snoop Dogg in The Sandbox metaverse.
Not only that but also Republic Realm (A firm that sells and buys land on metaverse) invested $4.3 Million to buy land in The Sandbox which is the most expensive virtual property sale till date!
What is the SandBox Metaverse?
Sandbox metaverse is a virtual world where people can buy, sell, create, and trade digital assets. It is a trusted platform as it is backed by the Ethereum Blockchain. This platform also has a feature of monetization through its local currency Sand Coin ($SAND) with which the players can do all of the above-mentioned things in The Sandbox metaverse.
The Sandbox metaverse can be broadly broken down into 3 variants; the game, the digital assets, and the marketplace. Just like the game Minecraft, one can create their world in the Sandbox metaverse on a virtual in-game asset known as LAND.
Decentraland is another metaverse backed by the Ethereum network. With Decentraland one can sell, buy, or trade digital assets in the decentraland metaverse while playing games or interacting with each other. The local currency of decentraland is MANA which can be used to buy digital assets in the form of LAND.
Apart from these two, there are many metaverses having their own local currencies where you can buy, sell, and trade virtual properties. But, one should have deep knowledge about any other metaverse they prefer to invest in. All these technologies are decentralised and are backed by various blockchain technologies; the better the blockchain the better the metaverse is and the longer it would sustain.
Therefore, if you are new to the metaverse, it is advised to gain some knowledge about blockchain, how the system works, about NFTs and then step into this huge market of virtual real estate.
This was a brief about the culture of Virtual Real estate and how is it growing in the world. There are many start-ups that are just concentrating on leveraging their properties on metaverse which in the future they might sell on the lease after several modifications.
So what do you think? Are all these investments made by several companies both national and international worth it? Will they be able to gain profit from this or this would be another trend that would fade away with time?
There are many doubts in one’s mind when they think about cryptocurrencies, NFTs, etc. but many see a bright future in it too.