Real Estate Looks For Revolution As Metaverse is Booming
In early 2003, millions of individuals were spotted working, playing, and socializing in the Metaverse in Second Life - an online media platform that allows people to create their avatar and explore, socialize, and trade. Although the game falls short of Metaverse's objective, the concept of individuals interacting online is not new.
Adoption of Digital Real Estate
Decentraland is becoming increasingly popular among users in recent years. It is a well-known modern metaverse that encourages a global network of users to purchase and sell real estate. The Metaverse has already infiltrated the world of real estate. Platforms like Somnium Space, the Sandbox, and Decentraland, have begun to sell, purchase, invest, and trade real estate.
Founded in 2015, the Decentraland Foundation and the project's initial coin offering (ICO) in 2017 raised $26 million. Although Decentraland is wide and offers several prospects, the platform has begun to draw attention to the rapidly increasing digital real estate market. Decentraland consists of a "decentralized ledger for LAND ownership."
Media sources reported that Metaverse Group, an NFT (non-fungible token) based real estate corporation paid a whopping $2.43 million for a plot of land from Decentraland. This initiative was taken on November 25 to assist with intentions to join the digital fashion sector. The commercialization of the metaverse is causing havoc in the real estate business.
It's becoming increasingly evident that commercial real estate in the metaverse will play a significant role in the global real estate business in the near future. Tokens.com signed a statement of intent in 2021 to purchase a 50% interest in Metaverse Group's digital real estate portfolio, which would thereafter be marketed as the first REIT for digital real estate.
Businesses such as the Metaverse Group do many of the same functions as a traditional real estate corporation in terms of buying, selling, and marketing. As prices climb and purchasers appear to be agitated over virtual land, others are skeptical that investing in digital real estate would prove wise in the long run.
Despite the exorbitant costs, interest in metaverse real estate is growing, particularly as the coronavirus outbreak has driven more people online and made them more likely to mingle virtually on a digital platform. Those interested in metaverse real estate face competition from celebrities who have made no secret of their digital real estate activity.
Celebrities Attract to Digital Real Estate
Celebrities have been venturing into the metaverse, according to Co-Founder & CEO of Tokens.com, Andrew Kiguel. In late September, the Sandbox announced a collaboration with Snoop Dogg to recreate his real-life residence on the platform’s NFT collection in the metaverse.
The next month, Paris Hilton collaborated with Decentraland and Genies to serve as one of the featured performers at the inaugural Metaverse Festival, the platform’s first-ever festival, which took place in late October. Genies are animated avatars that can speak using a celebrity’s voice.
Conclusion
Investment firms are also stepping into the Metaverse and learning more about how they can participate as well. Featuring high prices, popularity, and the ease of buying and selling virtual land will help the Metaverse boom. As more individuals enter the metaverse, skilled investors and purchases who take properties in prime locations will be used as examples for more people to be attracted to the metaverse, eventually.
As the Metaverse continues to grow and expand — so will digital real estate. Savvy buyers and investors would be wise to remain ahead of the curve and anticipate the metaverse real estate boom would continue indefinitely.