Metaverse and Real Estate: Navigating the Virtual Landscape

The first time anyone heard or used the word “metaverse” was in 1992. Many years after that, the term existed solely as a science fiction concept.

But today, the metaverse is no longer fiction. It’s real. So real that people are paying millions to purchase lands and properties in the virtual world. And when you talk about buying landed properties, the discussion gravitates towards real estate.

Yes, metaverse real estate is a thing, and many companies offering the service exist. In 2021, a plot of land in the metaverse sold for €2.49 million. That’s a lot of money!

Nevertheless, you won't necessarily spend that much if you want to invest in digital real estate via the metaverse. For context, you can get deals as low as $3,000.

This step-by-step guide walks you through the process of making the right investment. But first, let's understand what real estate in the metaverse entails.

Metaverse Real Estate Explained

The virtual world doesn’t exist as the physical world. You might ask, then, “how do I buy land in the metaverse?” How is it even possible?

Well, the lands in the metaverse aren't the solid earth crust on which people build huts and skyscrapers. They're programmable spaces where you can build digital rooms, workplaces, and playgrounds.

Just as no one owns the web, the metaverse doesn't have a sole owner. Instead, different metaverse companies offer virtual spaces for sale with multiple functionalities. These companies include Decentraland, Horizon Worlds, Sandbox, Celebrity Atlas, and Metahero. 

Generally, you can either buy land or estate from these companies.

Lands are empty virtual spaces with no infrastructure. It’s up to you to decide what to use them for. Conversely, estates contain extra features. These extras can be an already-developed digital room, workplace, or playground.

Due to the additional functionalities embedded into estates, they're typically more expensive than lands in the metaverse.

Some people question the security of virtual real estate since the lands and properties are not concrete. However, investing in virtual real estate via the metaverse is safe, thanks to blockchain technology.

All top metaverse real estate companies use blockchain and non-fungible tokens (NFTs) to ensure transparency. Once you purchase lands or estates on metaverse platforms, you'll receive digital deeds that validate ownership.

Is it a lot to grasp? Don’t worry. You’ll get a clearer understanding as we uncover the step-by-step guide to investing. Let’s get to it. 

Step-By-Step Guide on How to Buy Land in Metaverse

If you want to know how to buy metaverse land, follow these steps:

1. Create a Crypto Wallet

As mentioned earlier, metaverse platforms and virtual real estate revolve around blockchain technology and cryptocurrency. Consequently, unlike real world real estate, you can’t buy land plots in the metaverse with fiat. You must convert your fiat into digital currency.

So, the first thing you need to do is to create a digital crypto wallet — unless you have one already. Many crypto exchanges and wallet platforms are available. However, using the popular ones in the metaverse real estate market is ideal.

Popular wallet platforms in virtual real estate include Coinbase, Binance, MetaMask, Kucoin, and Gemini. They’re popular because they feature the common coins accepted by metaverse platforms for land purchases.

Another advantage of using these wallet platforms is that you can easily integrate them into your web browser. MetaMask and Binance, for example, have browser extensions that grant you round-the-clock access to your coins. 

Creating a wallet on these platforms is relatively easy. For safety, however, we recommend using an exclusive email for your digital wallet. Afterward, use the same email to register with your preferred metaverse platform.

Also, test your wallet to be sure it works. You may need to complete some verification or KYC requirements before purchasing coins.

2. Choose a Metaverse Platform

With a wallet, your next concern might be where to buy metaverse land. To find one, you must choose a particular metaverse platform to invest in the virtual world. This step is essential, as choosing the wrong metaverse platform can adversely impact your investment.

It’s similar to traditional real estate. When you purchase a real world land parcel in the wrong location, your investment won’t yield much. 

But there’s good news. Renowned metaverse platforms exist.

When choosing a metaverse platform, Decentraland and Sandbox are popular options that'll most likely appear. 

Sandbox stands out, though. 

This metaverse platform has a clientele comprising top brands and businesses. Even famous celebrities like Snoop Dogg and Paris Hilton use it. As such, you're in safe hands — literally!

Besides Sandbox and Decentraland, other metaverse platforms to consider include Voxels, Worldwide Webb, and Treeverse. Ultimately, the right alternative depends on what you want to do with purchased virtual plots.

Most metaverse platforms, including the ones mentioned above, double as gaming platforms. As a result, they’ll serve if you intend to build a playground or other fun virtual structures. However, if you have no inclination toward gaming, you can still facilitate metaverse land investments.

If you don’t use these metaverse platforms, you can use a third party platform like OpenSea. OpenSea is a global marketplace for digital assets, and virtual lands are among its listings.

The advantage with OpenSea is you won’t need to regularly switch platforms. The platform natively supports many crypto and NFT wallets. So, you can simply shop around and purchase the virtual land you want. How convenient!

3. Purchase Crypto

The third step in investing in metaverse real estate is purchasing crypto coins. You need these coins to buy virtual lands. Note that the alternatives you'll have access to will differ from one metaverse platform to the other.

Generally, you can buy virtual land in the metaverse with popular crypto coins like Bitcoin and ETH. On marketplaces like OpenSea, you can utilize NFTs. However, some metaverse platforms prioritize their native crypto coins.

For instance, to buy land in the metaverse from Decentraland, the ideal crypto to use is MANA. MANA is the native token in the platform’s marketplace and the medium of exchange within its virtual worlds.

Suppose you build a playground or events space on a digital land in Decentraland. Users who come to play games or attend your virtual events will pay using MANA. As such, purchasing MANA is better than any other crypto coin on the platform.

If your metaverse platform is Sandbox, you’ll transact with the platform’s native token: SAND. The prices of these native tokens vary and are volatile, like any cryptocurrency.

4. Research Which Virtual Land to Buy

Here’s where the most work is; researching which virtual land to buy. The bulk of this research centers around price and location. While the virtual world may differ from the real world, the factors driving real estate prices are prevalent in the metaverse.

Can you guess how much it would cost to purchase land near Times Square in New York? Well, the median listing price here exceeds the $1 million mark. It’s that expensive because Times Square is one of the most famous locations in the city. 

Similarly, a virtual land in the metaverse will be expensive if it’s close to a famous location. Take, for instance, someone who purchases virtual land and builds a playground. And after a while, the playground becomes so popular that it attracts thousands of virtual players.

If you want to purchase metaverse land close to the famous playground, the price will be far higher than buying iterations 100 kilometers away or at infamous spots. So, it’s up to you to decide based on your budget.

When researching which virtual land in the metaverse to buy, consider what you plan to do with it. If you want to build a playground, don't do so next to an already popular variation.

Examine all available information once you find the ideal virtual land to buy. These include the contract address, token ID, token standard, and chain. If you're satisfied, proceed to make a bid.

5. Link Your Wallet to the Metaverse Platform

If you're using a Metaverse platform like Sandbox or Decentraland, you’ll need to link your wallet to make your purchase. This action is vital even if you use traditional cryptos like BTC, ETC, or native platform tokens.

Sandbox, for example, doesn’t have a native wallet. So, you’ll need to link a wallet to hold your SAND tokens. Furthermore, as you build and operate in the virtual reality space, your wallet will also hold the NFTs you use.

This step should be easy if you use the popular crypto wallets mentioned earlier. For most of them, linking is as easy as clicking the “Connect My Wallet” option. Once the wallet connects successfully, you’re one step away from being a landowner in the virtual space.

You can connect your wallet in step two when signing up for the Metaverse platform. However, it’s better to first identify the metaverse land you want to purchase. Should the metaverse platform not have an ideal land, you can seamlessly switch to another.

6. Complete the Purchase

The last step in buying metaverse land is to complete the purchase. Here, you don’t have to do much. Once you connect your wallet, your purchase will be successful if you have sufficient coins.

After concluding a purchase, confirm your ownership. Validating ownership will differ depending on the Metaverse real estate platform. Generally, virtual land ownership exists as an NFT. Therefore, it should reflect in your wallet.

You can also inspect the transaction via the NFT activity field. If everything is in order, you can begin building in the virtual world. However, you can also hold on to the virtual property and sell it later. Your choice!

Ultimately, your goal in investing in virtual real estate is to make a profit. So, before we conclude, let’s discuss how profitable it is to purchase virtual metaverse land.

Is Buying Virtual Land in the Metaverse Profitable?

Thanks to the step-by-step guide above, you now know how to purchase Metaverse land. But should you? Is it profitable?

The straightforward answer is yes! Buying virtual land in the metaverse is profitable. In fact, the ROI is much higher when compared to physical real estate. Why? The metaverse is open to all.

Furthermore, it’s almost impossible to become a victim of fraud with blockchain technology. Every transaction history reflects on the blockchain, making the entire process transparent.

However, virtual land investments being profitable doesn’t mean there are no risks. Like most digital assets, caution is advised when investing in virtual real estate. Price-wise, digital assets are highly volatile, and attention and speculation play a significant role.

There’s no magic or quick money with virtual land investments. At the end of the day, everything comes down to what you do with the land parcel or estate you purchase.

If you’re investing in metaverse real estate to sell later at a higher price, know that the value can climb or crash anytime. These fluctuations mimic market demand. Currently, deciding to hold lands long-term is challenging since the concept of virtual real estate in the metaverse is still new.

Going forward, if more people pick interest in owning virtual land, the price of metaverse lands will skyrocket. But if interest drops, the price will plummet.

It’s safer, in a way, if you’re investing to develop a digital structure others can use. For example, a playground for online gamers.

Conclusion

Most people are skeptical about investing in the metaverse. However, it's as legitimate as it gets. With the growing adoption of digital investments worldwide, realty investors who invest in virtual real estate can make astronomical profits.

If you plan to make a realty-themed investment in the metaverse, follow the steps outlined in this guide to ensure you get it right. Godspeed!

With most people purchasing virtual lands in the metaverse, you might want to know if this investment route suits your short and long-term financial goals. To be certain, we recommend turning into the Icons of Real Estate Podcast. Our podcast episodes feature experienced real estate investors who deliver context on techniques to adopt and pitfalls to avoid when investing in virtual real estate.