Thanks to decentralized technologies, real estate may be eternally transformed. Digital real estate develops as the Metaverse expands.
While Mark Zuckerberg asserts that the Metaverse is the future, others believe it has already started. The word "metaverse" was invented by science fiction author Neal Stephenson in his 1994 novel Snow Crash. Hiro Protagonist, the lead character, guides the digital space within the pages.
Since 2003, millions of people have also worked, explored, and interacted in the Metaverse, which is part of the digital Second Life universe. Though the game, which had a peak in the early 2000s and featured some rough graphics, is a long way from the current Metaverse vision set by firms like Meta and Microsoft, the concept of a digital metaverse wherein people communicate is not new.
Decentraland is now the most well-known modern-day metaverse, allowing users to purchase and trade virtual real estate, discover, connect, and play games. The Decentraland Foundation was founded in 2015, and the project's initial coin offering (ICO) in 2017 raised around $26 million. Though Decentraland is vast and has a lot to offer, the platform has attracted a huge amount of focus to the lucrative and ever-growing virtual real estate sector.
The nonfungible token (NFT)-based Metaverse Group real estate company acquired a plot of Decentraland "land" for $2.43 million on November 25, as per media sources, to assist with its intentions to enter the virtual fashion sector.
Real estate sector has been rocked by metaverse monetization
Commercial real estate in the metaverse is certainly going to play a significant role in the global real estate industry in the coming years. Tokens.com signed a statement of intent in the fall of 2021 to acquire a 50% stake in Metaverse Group's virtual real estate portfolio, which will thereafter be marketed as the first REIT for virtual real estate. According to the Metaverse Group, a public listing could happen in 2022 or 2023.
Due to the increasing popularity of purchasing and selling digital property, organizations like the Metaverse Group do many of the same activities as a traditional real estate firm in terms of buying, selling, and marketing. Some are skeptical that investing in virtual real estate will prove sensible down the line as prices increase and buyers appear excited about virtual land.
Despite the high prices, interest in metaverse real estate tends to increase, particularly as the coronavirus outbreak has pushed more people online and made them more likely to interact virtually. People interested in metaverse real estate face competition from personalities who have made no secret of their digital real estate activity.
The Sandbox revealed a collaboration with famed rapper Snoop Dogg in late September to build up his residence and NFT collection in the metaverse. Paris Hilton partnered with Decentraland and Genies the following month to perform as one of the major artists at the first Metaverse Festival, which took place in late October.
Why are real estate investors making their way to digital properties?
The focus and interest seen by Metaverse have not gone unnoticed by other firms, like Meta, formerly Facebook, and Microsoft, who are ready to get in on the action.
Metaverse assets, like traditional real estate, continue to flourish despite fluctuations in Bitcoin (BTC) and other cryptocurrencies.
The prominence of NFTs, combined with rising interest in virtual surroundings, contrasts with the restricted amount of land available in metaverse virtual space, driving prices high. For example, only 90,000 land pockets exist in Decentraland.
Even investment firms are sinking into the Metaverse and discovering more about how they can engage. The Metaverse will be more than jargon because of its high costs, popularity, and simplicity of purchasing and selling digital land (as compared to traditional real estate). As more individuals join the metaverse, skilled investors and buyers who scoop up properties in prime places will look very smart, similar to the domain name scramble during the early era of the internet.