Because of decentralised technologies, real estate may be forever revolutionised. As the Metaverse evolves, so will digital real estate. But how does this happen?
Many people disagree with Mark Zukerberg, who believes the Metaverse is the future; they believe the future has already begun.
Decentraland is a well-known modern-day metaverse. It boasts a global user base that encourages them to buy and sell digital real estate, interact, explore, and play games.
Commercial real estate will also play a crucial part in the global real estate industry in the next years. Tokens.com already signed a letter of intent in 2021 to purchase a 50% stake in Metaverse Group’s digital real estate portfolio.
While Mark Zuckerberg argues that the Metaverse is the future, others believe it has already begun.
The term “metaverse” was originally coined by science fiction novelist Neal Stephenson in his 1994 novel Snow Crash. Hiro Protagonist, the primary character, navigates the virtual world within the pages.
– Advertisement – Decentraland is the most well-known modern-day Metaverse, with a global network of users who are motivated to buy and sell digital real estate, explore, interact, and play games.
The Decentraland Foundation was created in 2015, and its initial coin offering (ICO) raised approximately $26 million in 2017. While Decentraland is huge and has a lot to offer, it has drawn much attention to the lucrative and fast-growing digital real estate industry.
IS METAVERSE MONETISATION A RISK FOR THE REAL ESTATE INDUSTRY?
Commercial real estate in the Metaverse is clearly going to play a pivotal presence in the global real estate sector in the future years.Tokens.com signed a letter of intent at the end of 2021 to purchase a 50% stake in Metaverse Group’s digital real estate portfolio.
The Metaverse Group by Zuckerberg intends to market the offers as the first digital real estate REIT. And according to Metaverse Group, a public listing could occur in 2022 or 2023.
The last September, the Sandbox announced a collaboration with legendary rapper Snoop Dogg to develop his mansion and NFT collection in the Metaverse.
The next month, Paris Hilton collaborated with Decentraland and Genies to perform as one of the primary performers at the first Metaverse Festival, which took place in late October.
Other organisations, such as Meta, formerly Facebook, and Microsoft, have taken notice of Metaverse’s popularity and are eager to participate.
Despite the ups and downs of Bitcoin (BTC) and other cryptocurrencies, metaverse assets, like traditional real estate, continue to prosper.
Even investing firms are dabbling in the Metaverse to learn more about how they may participate.
The Metaverse is Here to stay
The Metaverse will be much more than the hype compared to traditional real estate due to its high valuations, popularity, and simplicity of owning and selling virtual land.
As more people enter the Metaverse, smart investors and buyers who acquire homes in good neighbourhoods will gain a good reputation, comparable to the domain name scramble in the early days of the internet.
As the Metaverse evolves and expands, so will digital real estate. As a result, buyers and investors ahead of the game should expect the metaverse real estate boom to continue.
How are real estate investors shifting their focus to virtual properties?
The interest and curiosity given to the Metaverse have not gone unnoticed by other companies such as Meta, formerly Facebook, and Microsoft. They are eager to join in on all the fun.
Metaverse properties continue to thrive despite changes in Bitcoin (BTC) and other cryptocurrencies, much like conventional real estate, which often holds value even during terrible economic times.
The popularity of NFTs, paired with growing interest in online environments, contrasts with the limited amount of land accessible in Metaverse virtual worlds, driving up costs. For example, Decentraland has only 90,000 land pockets.
Investment firms are also immersing their toes into the Metaverse and learning more about how they may participate. Because of its high pricing, fame, and simplicity of owning and selling virtual land, the Metaverse would be more than just a buzzword (as opposed to traditional real estate). As more people enter the Metaverse, expert investors and buyers who buy properties in prime locations will appear incredibly savvy, comparable to the domain name scramble in the early days of the internet.
As a result, savvy buyers and investors should remain ahead of the curve and believe that the metaverse real estate boom will continue and is here to stay!