The Only Metaverse Virtual Real Estate Guide You Should Read
If you're considering purchasing virtual real estate in the metaverse but don't know if it's right for you, we're here to help. This guide will answer all your questions so you can feel confident in deciding if virtual real estate is your best option.
If you’ve found yourself curious about the virtual real estate world, you're not the only one. The global metaverse market was estimated to be worth $63.83 billion in 2021 and is expected to have an annual growth rate of 47.6% from 2022 to 2029.
Now is a great time to get into this space before it's saturated with users and prices skyrocket. Even though virtual real estate seems promising, you might be hesitant if it's right for you. This guide is a quick but thorough rundown of everything you need to know about metaverse virtual real estate. You'll understand the metaverse real estate market and the pros and cons, so you can decide if digital real estate is for you.
What is the Metaverse?
Before we get into specifics, it's crucial to ensure you understand the basic concepts we're dealing with, including knowing exactly what the metaverse is. The metaverse is a network of 3D virtual worlds hosted on the internet. It is focused on offering people the opportunity to make social connections in a digital world.
The phrase "metaverse" was first used in the 1992 science fiction book Snow Crash by Neal Stephenson. It's become a much more popularized term today with the advancement of virtual technologies, but for many, it still feels like a complicated, diluted concept.
We can help with that.
Part of the reason it's so challenging to understand exactly what "metaverse" means is that it can refer to multiple platforms. Companies use the phrase "metaverse" to refer to virtual and augmented reality worlds. Generally speaking, you can think of the metaverse as spaces that aim to virtually connect individuals and allow them to live in a mixed world reality.
What is Virtual Real Estate?
So, now that you understand what a metaverse is, you might ask yourself, "what is metaverse real estate?" Metaverse real estate is a type of virtual real estate一a form of digital real estate that only exists online in a digital world. Virtual real estate can take many different shapes but is primarily sold as a plot of land or property. For example, you may purchase a private island or a mansion.
How Does Virtual Real Estate Work?
New technology and digital concepts can often feel complicated, but virtual real estate is actually a fairly straightforward topic. When you purchase virtual real estate, you're buying a digital asset, which is unique and secured by a non-fungible token (NFT).
But what Is an NFT, you ask?
Let's take a quick detour here and explain what NFTs are. A non-fungible token is a cryptographic asset on a blockchain that has a unique digital identifier. "Non-fungible" means NFTs cannot be copied, subdivided, or substituted一they are unique individual assets. In contrast, a bitcoin is a fungible asset where you can trade one bitcoin for another, and you'll have the exact same asset.
NFTs can come in various forms, including music, art, and virtual real estate.
So, coming back to the topic of virtual real estate and how it works. Summarized: virtual real estate allows you to purchase a unique digital pixel of land or property in a metaverse. You buy this property with cryptocurrency and receive a unique piece of blockchain code that acts as your deed of ownership.
Anyone can purchase land in the metaverse, but you'll need to create an account in that digital world and link it to your digital wallet to pay with cryptocurrency. You can view available properties in a virtual real estate shop and purchase the best one that suits your needs.
Why Purchase Metaverse Real Estate?
The answer is that some want to capitalize on this opportunity before it's too late. One common misconception is that since the metaverse is a digital world, the real estate available is unlimited. In actuality, each metaverse hosts a limited supply of land. And early metaverse speculators are taking advantage of buying that real estate now before it's all gone!
The Benefits of Virtual Real Estate
There are several benefits to purchasing virtual real estate:
1. Business Opportunity
The other benefit of virtual real estate is the opportunities it can hold for your business. If you purchase virtual land in a prime location, you could use it to your advantage in the metaverse in many of the same ways you would use a physical property. You could rent out the space, host virtual events there, or run and promote your business there. A metaverse is all about social connections, and if you hold real estate where everyone is virtually hanging out, you can use this exposure for many business advantages!
2. Easy to Manage
If you compare virtual real estate properties to physical properties, management is much easier. You don't have to travel to a physical location to check on your property. Instead, it's always on your computer and accessible. And the upkeep is simple even if you rent out the space. A virtual real estate portfolio requires no cleaning up and all the management can be done in your own living room.
The Risks of Virtual Real Estate
Ultimately, the biggest risk of virtual real estate is that no one knows how things will unfold for the metaverse worlds out there. The metaverse is a relatively new concept that has yet to branch into mainstream culture. Someone who purchases virtual real estate doesn't know if the metaverse will maintain its current popularity, increase, or even shrink to the point of making virtual properties worthless.
Generally speaking, the trend has been upward in recent years, with some virtual real estate plots of land selling for the same price as an average physical home in the US. One investor sold virtual private islands for $15,000 each in 2021 and just one year later saw that they were valued at $100,000, a 566% increase in just one year! Of course, these returns aren't guaranteed, and no one knows how long the upward trajectory will last. Bitcoin, one of the most popular cryptocurrencies on the market, has had its own history of drastic ups and downs in valuation over the years.
Lastly, there is a risk with virtual real estate of you being digitally robbed. While no one could walk away with your building in the physical world, someone could access your digital wallet and steal your real estate NFT. This risk can be minimized by maintaining a secure digital wallet, but it is a risk worth mentioning.
How Much Is Metaverse Real Estate Worth?
If you're ready to purchase virtual real estate, know you're not alone in this decision. Many celebrities have started to get into this emerging market—like Paris Hilton, Sara Sampaio, and Stanislas Wawrinka all own virtual land. And, if you make the right purchase, you could be the neighbor to a famous person! For example, one NFT collector paid $450,000 to purchase a property next to Snoop Dogg. On average, the digital properties and plots of land sold on metaverse platforms range from $6,000 to $100,000.
How to Purchase Virtual Real Estate Properties
Purchasing virtual real estate takes a few steps. You'll need to decide which metaverse you want to own property on, such as SuperWorld. Next, create an account in that metaverse and link your digital wallet. Once you find a plot of virtual land, you're ready to buy, make an offer, and complete the transaction. Your virtual real estate NFT will be added to your digital wallet, and you'll be the official owner of some digital land!
Note that your digital wallet will need to be funded with cryptocurrency to make the purchase. You'll also want to ensure your digital wallet is as secure as possible, so no one can break into and steal your virtual property NFT from you.
There are NFT scams that can be quite convincing and will wipe out your digital wallet. Always purchase virtual real estate from a trusted, reliable, and secure source, like SuperWorld.
Is Metaverse Virtual Real Estate For You?
At this point in the guide, you might wonder, should I purchase in virtual real estate? Ultimately, virtual real estate is just one of many places you could put your money. Only you can determine if this is the right fit for you. The answer may depend on how risk tolerant you are, how much you believe in the future success of the metaverse, and other factors.
As with most forms of speculation, you shouldn't play with money you can't afford to lose. Know that, just like physical real estate, there is no guarantee that your property will increase in value.
You'll want to do extensive research into the metaverse and digital real estate before making any purchases.
That being said, "high risk, high reward" definitely applies here. As we've already seen, those who have purchased virtual real estate have made significant gains! So, if you have a cryptocurrency budget and are risk-tolerant, virtual real estate might be a good choice.
Additionally, like physical real estate, the key to virtual real estate might be being able to hold onto it for a more extended period. If the virtual real estate market follows the trends of the physical market, there will be periods of ups and downs. Users who do best are those who can hold onto their assets through dips in the market and sell when the market is at a high.
Remember that virtual real estate land is limited and taken up daily. And prices are increasing as this becomes a more popular choice. So, if you're going to try out virtual real estate, you should probably do so soon!
SuperWorld: An AR Metaverse for Virtual Real Estate
SuperWorld is a virtual world in Augmented Reality (AR). We are building a better, connected digital world by bringing blockchain tech, AR, and NFTs into users' daily lives. Our platform helps users engage with each other and affect change in the real world.
Virtual real estate speculators don't need to look any further for their next opportunity. SuperWorld is digitally mapped over Planet Earth, with a whole world of NFT properties and land available for purchase today. Visit our world and explore the map to look around and get a glimpse of your new favorite metaverse.