What is Metaverse Real Estate, and is Digital Land Worth it?

If the thought of spending hundreds of thousands of dollars on the purchase of "virtual land" sounds absurd, well…

Okay, it does sound a little ridiculous. Still, when you consider the fact that there has been growing interest in cryptocurrency investments and NFTs (non-fungible tokens), it's not surprising that investors have gotten on board the virtual real estate train.

Recently, significant virtual real estate investments have been made inside the metaverse.

For example, one individual paid $450,000 to own a plot in Snoopverse, a virtual world developed by Snopp Dogg in conjunction with The Sandbox, a virtual metaverse where users build, own, and monetize their own gaming experiences using the Ethereum blockchain.

Meanwhile, Metaverse Group, the first real estate firm focused exclusively on the metaverse economy, bought a plot of land in the Decentraland virtual platform for a whopping $2.43 million.

What is Metaverse Real Estate?

The metaverse refers to a growing collection of platforms giving users real-time interaction capabilities. A metaverse has its own economy that allows users to buy, sell, and trade objects or mine crypto coins.

There is incredible value in virtual land for those serious about sandboxing, especially when it is in short supply. 

Most popular platforms are known as "sandbox worlds," which allows users to build whatever they can dream of within the program's constraints. One such constraint, and the driver behind the value of virtual land, is that limited land is made available for purchase.

While the platforms in the metaverse might look a lot like just another game, and they can certainly offer hours of gameplay, there is no limit to what you might do in these virtual worlds.

Some people simply log on and socialize or attend special events, such as parties or concerts.

How Do You Buy Metaverse Real Estate?

If you want to purchase metaverse real estate, you're going to have to join one of the popular metaverse platforms. These platforms include Axie Infinity, Decentraland, and The Sandbox, to name a few. You'll also need to ensure that you have a very fat digital wallet.

Cold hard cash can be converted to cryptocurrencies, such as Ethereum or whatever native currency is associated with your preferred metaverse. You can then store the cryptocurrency in a digital wallet.  

Using the metaverse ecosystem, you can rent, buy, sell and flip properties in the digital world.

Is Digital Real Estate Worth It?

Messing around in the metaverse is one thing, but becoming an investor in virtual real estate is quite different. While history has demonstrated that virtual real estate has the potential to gain significant value in time, there's an equal chance that the metaverse platform you choose could go bust.

As an investment, metaverse real estate is extraordinarily speculative. Investors need to believe that the platform will exist long enough to yield a profit. While that is possible, the concept remains shaky, so much so that even its members have trouble defining themselves uniformly.

Knowing which metaverses will succeed or fail is anyone's guess, and it is impossible to tell if the hype around virtual real estate is driving the prices instead of long-term interest.

How is Digital Real Estate Regulated?

Digital real estate and the metaverse as a whole operates, for the most part, free from government regulation. However, don't expect the metaverse to be the wild west forever.

As cryptocurrencies and metaverses grow stronger and step on the toes of world governments, you can expect governments to exert more influence. For now, most legal issues connected to the metaverse involve intellectual property disputes, which aren't unique to the metaverse.

Becoming a Real Estate Agent Who Specializes in Metaverse Real Estate – Crazy Idea?

If you are already a real estate agent or interested in becoming one, perhaps you can become an agent specializing in metaverse real estate. It's certainly not unheard of. For example, Tal and Oren Alexander, two of Douglas Elliman's top brokers, now sell real estate in the metaverse.

To advertise a digital property, many agents use Facebook Ads and other types of sponsored content to reach prospective buyers.

Currently, those selling property in the metaverse are not required to have a real estate license, but taking some online real estate courses may not be such a bad idea.

Final Thoughts on Digital Real Estate Investing

If you have money to burn and love dealing with risky investments, buying and selling virtual property in the metaverse is right for you.

However, you should proceed with caution because investing in virtual real estate is nothing like investing in real estate here in the real world.

Unlike real estate in the real world, folks in the metaverse don't need a virtual property for survival. They don't require a roof over their family's heads or a place to raise livestock or build a business.

Virtual real estate isn't necessarily the way it is here on Earth, and that has to count for something.