The Metaverse Virtual Real Estate is a growing business, with artists, musicians, and companies from many different fields wanting to get in on it. But back then, who would have thought that big investors, fashion brands, tech companies, and regular people would buy virtual properties on blockchain-based metaverses with digital assets?
Some of them have already started: Meta, Microsoft, and other IT giants, fashion brands like Gucci, and even multinational companies like Adidas and Pepsi are buying or renting properties in the metaverse development to set up shops.
What does “Virtual Real Estate” mean?
Even the most tech-savvy and knowledgeable people don’t know what digital real estate is when asked.
Digital real estate is made up of specific pieces of code that are part of an interactive web experience and are used to create “virtual plots of land” on a certain metaverse platform. In the future, you can get the ownership rights to these pieces of land in the form of non-fungible tokens (NFTs). Right now, most platforms for virtual land are based on the Ethereum blockchain. But this isn’t the only choice. Other blockchain platforms, like Solana and Polka dot, are also being used to build the metaverse.
Top real use cases Metaverse Virtual Real Estate
The virtual land in the metaverse is easy to change, so it can be almost anything. You can buy a piece of land where you can build houses, gardens, mansions, bars, restaurants, swimming pools, mountains, rivers, tennis courts, and so on.
Importantly, real estate in the metaverse gives people a lot of ways to make money and take advantage of opportunities. If you think it’s just about investing and building, you’ll be surprised to find out that it’s about so much more. So, for example, landowners can use their virtual property in many ways, such as advertising, planning events, setting up virtual offices, flipping, brokering, renting, and managing.
You can rent out your virtual land for advertising, just like you can in real life. If your virtual land or building is in a popular area and is easy for other metaverse users to see, brands may reach out to you to ask if they can advertise their goods and services on it. This is already happening, whether you believe it or not. World-famous companies like Coca-Cola, Samsung, and Volkswagen have invested in virtual billboards to take advantage of this new opportunity.
Setting up virtual events
Once you have a piece of digital land, you can use it to host parties, concerts, conferences, and business meetings. You can charge people to attend your events, come up with a design idea, choose special effects, and invite anyone you want.
A-list celebrities and bands like Paris Hilton, Justin Bieber, and BTS have already moved forward with the meta world and started throwing virtual parties. Snoop Dogg, on the other hand, has been one of the most active users in the metaverse. He even built a mansion inside The Sandbox platform, where he has been holding private parties and concerts.
Digital real estate has also become a big draw for corporations and medium-sized businesses that want to open virtual offices. In a survey done by Flexors, 65% of people said they wanted to work remotely full-time after the pandemic. Another 33% said they wanted a hybrid arrangement, and everyone was willing to socialize virtually. So what should we think?
First of all, it means that employees need to find new ways to get their bosses’ attention and give them a lot of ways to talk to them. In these situations, digital real estate can be seen as a good answer. Users can talk to each other in virtual offices that are powered by the metaverse. They can do this from the comfort of their own homes while using the power of modern technology.
Workers can get to know each other, go to daily meetings and conferences, hold professional workshops, and just talk to each other over a virtual cup of coffee. PricewaterhouseCoopers and Prager Métis are just two of the companies around the world that have started building virtual office spaces.
Flipping and brokering
If you know how to do financial transactions with real estate, you’ll be happy to know that your services will also be in demand in the digital real estate world. You can flip real estate in the metaverse, which means you buy virtual plots of land and then sell them for more money. You can also act as a broker by putting buyers and sellers of virtual real estate in touch with each other and providing them with professional consulting services for a fee.
Renting and managing
You can become a virtual landlord with digital real estate. For instance, you can buy a virtual house, fix it up, and then rent it out to other users of the metaverse. Don’t forget that where you are matters. For metaverse real estate lending to bring in more money, your property should be in a busy area with a lot of shops and services. The better the infrastructure around your digital property, the more you can charge for it.
The management of digital real estate is another important use case that can help you make money. If you have the right skills and qualifications, you can choose to manage other people’s metaverse real estate. Study what your client wants and needs, make a business plan, and think of ways to help the client get the most out of their virtual land or estate. For instance, you could suggest that the property be rented out for parties or business events.
Why should you invest your money into Metaverse Real Estate?
Even though metaverse real estate is still a bit of an unknown territory that requires a lot of research and thought, it can still be a good investment for brave investors. Let’s look more closely at some of the good things.
Possible ways to make money
Digital real estate can help you get a good return on investment (ROI) as long as the value of the virtual land or building you bought goes up and you do your best to make it look good. In general, you should always be looking for new ways to market your property and coming up with ideas for how and where it can be used.
Easy to get to
Another great thing about real estate that can be used in the metaverse is that it is open to anyone who wants to use it and be proud to be called a metaverse investor. At the moment, anyone can get past the regulatory problems that might come up in traditional real estate and start investing in metaverse lands or tiny parcels.
With digital real estate, it’s easy to start a business in a new way. Once you have bought a virtual land or house, you are free to come up with an idea and turn it into a metaverse business, like a restaurant, office space, concert hall, or amusement park.
The best part is that you won’t have to deal with paperwork or other boring tasks that are part of life in the real world.
If you have been investing for a while, you should know how important it is to have a diverse portfolio. If you have a digital real estate project, you will probably be ahead of the curve. Since technology is here to stay, you can look at virtual land right away while you think of ideas and concepts you’d like to use in your project.
Digital real estate has a pretty good chance of growing. Just like any other business, your metaverse real estate can grow into something bigger and bring you more money if you make sure to have high engagement rates, make a thorough business plan, and keep up with the latest metaverse trends that could be popular with users.
New chances for real estate businesses
Real estate companies and agents in the metaverse buy land plots on blockchain-based ecosystems like Sandbox and Decentral and and rent them out to other companies or people who want to get into the virtual reality space.
But this market still has some problems. The biggest one is that many businesses and individual investors still don’t understand this space and its technology. Many real estate agents in the metaverse can help with every step of the buying process, just like they do in the real world.
What we should know when buying digital land?
Anyone who wants to buy virtual property needs to think about location, size, and the amount of land available. Depending on where they are in a metaverse ecosystem, some districts are better than others because businesses can make marketing campaigns that reach more people.
But it’s not just about advertising. Adrien Cheng, CEO of New World Development, bought one of the largest land plots in Sandbox to take his company to the next level. He wants to build a “megacity” that will be a place where tech and business startups can go to get new ideas.
A booming business with many chances
In essence, the metaverse is just another way for companies and businesses to reach out to more customers. It makes sense to do so now that the digital economy is here. The global metaverse market is worth more than $500 million right now, and experts think it will be worth more than $1 billion in 5–10 years.