As interest grows in NFTs and metaverso , investors have increasingly interesting and promising opportunities to enter the world of cryptocurrencies. Virtual real estate is a type of income fundamentally new, which has not yet reached its full potential. But it is already becoming clear that the sooner you enter this area, the more benefits you can get.
Our editors have studied and will tell you how to buy land in the metaverse . This land is by no means real, but may nevertheless have long-term value term .
Briefly about the main thing
- The metaverses offer the opportunity to purchase land with long-term value. Virtual real estate in metaverses is quite popular among investors, which was especially expressed in the wake of the popularity of this topic in 2021.
- Examples of metaverses with virtual real estate: Decentralized , The Sandbox , Axie Infinity , CryptoVoxels, Dream Space, Upland.
- The cost of virtual real estate in metaverses ranges from several hundred thousand to millions of dollars. Therefore, this type of investment is not suitable for everyone.
- Earnings are possible through resale, rental, advertising and events.
- The risks of investing in virtual real estate are associated with the possibility of land devaluation and market oligopoly (power of several large investors).
What is the metaverse and the land in it
Metaverse is a virtual alternative reality, often supporting technologies VR/AR , in which users can play games, win money, interact with friends or famous people, participate in events, etc. The concept has been around for over 30 years, but it gained unprecedented popularity as soon as Facebook announced its plans to launch a metaverse and rebranded it as Meta. Since then, many investors have been actively exploring opportunities to make money in this new and rapidly growing space.
One such opportunity is to buy land in metaverses. Real estate is one of the most sought-after asset classes in real life and has now gained a foothold in virtual worlds as well.
Digital land can be purchased using the currency of the specific metaverse in which they are located. For example, in the Decentraland universe, the asset to be purchased is the MANA token. Some plots of land sell for hundreds of thousands and even millions of dollars in real money.
How to make money in the industry
Reasons to invest in real estate in the metaverse:
- Possibility of resale at a later date for a higher price. The price may increase due to several factors: improvements to the site itself (decoration and functionality), proximity to websites of famous people or proximity to virtual attractions, and finally the general increase in the popularity of the platform and therefore the demand for its properties.
- Renting and earning passive income. There are many people who need virtual land to place ads, hold events, and launch their projects. But they don’t want to buy. Therefore, the rental market in this area is quite developed.
- Place your own advertising on the website or at other income-generating events (NFT exhibitions, etc.).
The more metaverses develop, the more profitable they become the investment . The main thing is to choose a promising project.
Leading virtual real estate projects
Examples of metaverses on the blockchain with virtual plots:
Descentralend
Web Site: https://decentraland.org/
Market: https://opensea.io/collection/decentraland ; https://market.decentraland.org/
The most popular platform, which includes a large number of territories where advertising materials, events and other content of brands of varying degrees of fame are located. Ordinary users, of course, can also own territories, although the commercialization of the sphere is obvious. Each lot represents one NFT LAND token .
By clicking on any site, you can view it – as a guest or using your wallet account. Before logging in, you will need to select your avatar and other settings and agree to the terms of the license agreement. The guest can run around the territory and observe it, but cannot take any decisive action.
The SandBox
Web Site: https://www.sandbox.game/en/
Market: https://opensea.io/assets/sandbox
Sandbox lots are also referred to as LAND and are sold on the OpenSea marketplace. To view the available territories, you need to go to the section Map in the side menu. Clicking on a specific area will open information about it, a visual preview, and information about the owner.
You can buy land in the section Market – specify LAND in the filters on the side and click on the appropriate land. There will be a transition to the site OpenSea , where you can make a purchase by connecting using the wallet Metamask .
CriptoVoxels
Web Site: https://www.cryptovoxels.com/
Market: https://opensea.io/collection/cryptovoxels , https://www.cryptovoxels.com/marketplace/parcels
The digital world, which is like a huge, almost limitless city. By zooming in on the map and clicking on any active point, you need to select Teleport here to visit it. You can walk around the place with a character that looks like a mannequin and see everything there is there. There are areas with paintings, games and other content.
To buy a plot of land, you need to go to the section Buy Installments in the top menu of the website. But there are only a few areas represented there. Or go to the project page on OpenSea where the full range is located. Prices range from 1.98 ETH to 10,000 ETH.
Dream Space
Web Site: https://somniumspace.com/
Market: https://opensea.io/collection/somnium-space ; https://somniumspace.com/market-place
Somnium Space has been described as “metaverses within metaverses ” . The project includes a complete Unity SDK for game development, virtual reality support, and a functional construction kit. It can be used on both desktop and mobile devices. Project partners include Matic and OpenSea.
The platform is still in the development and beta testing phase. However, it is already possible to visit and purchase land. Buying/selling is done through OpenSea; the project's own marketplace is not yet operational. You must select a cube on the map and click DreamWeb to view or OpenSea to purchase.
Axie Infinity
Web Site: https://axieinfinity.com/
Market: https://marketplace.axieinfinity.com/ ; https://opensea.io/collection/axie
In the Axie Infinity project, where you control Pokémon-like pets, a section with a map and visual representation of the terrain is under development. However, the lands are available for free sale – you need to open the market in the appropriate section of the site and select the tab Lands .
There are different types of sites – forest, arctic, savannah. They are all the same size, but differ in location. Each of the 90,601 plots will allow you to obtain the resources necessary for the development of the game.
Upland
Web Site: https://www.upland.me/
Guide to buying real estate: https://www.upland.me/guides-and-tutorials/buying-property
A very interesting blockchain project, whose creators plan make a virtual copy of the real world. For example, popular American cities have already been developed – Chicago, Los Angeles, New York, San Francisco. Visually, the process resembles Google maps – you can zoom in and walk along the streets.
And if you want to buy property, you can do that too. It is not yet entirely clear what the future value of owning this land will be. Many aspects are still under development.
How much do properties cost in metaverses?
When pricing virtual land, its size, existing buildings, location, and market demand play an important role. And if these factors change, the value can rise or fall significantly.
So, on December 8, lot #33316 in The Sandbox sold for $13,000, although on March 31, 2020 it first sold for just $38. Or lot #10889035741470030830827987437816582766476 in Decentraland sold in 8 August for $26,000 and for the first time on December 25, 2017 for $452. These areas are relatively common, without any notable features. But there are also lots sold at prohibitively high prices – for example, #48766 at The Sandbox – $57,171 or #1965 at Decentraland – $758,000*.
*analyst information and the Motley Fool
Expert opinions and news
Virtual land is in high demand in metaverses Decentraland, Axie Infinity, The Sandbox – lots sell for millions of dollars. The website dAppRadar tracks the best NFT purchases ( https://dappradar.com/nft/sales ) and during the week of November 22-28, 50% of the top non-fungible token transactions were in digital real estate.
- Lot in the Fashion Street Estate in Decentraland – $2.4 million. This was the most expensive virtual land purchase ever, but to be fair, the deal included 116 separate parcels.
- Axie Infinity Genesis Plot – $2.33 Million. The amount was almost the same, but there was only one batch.
- Reserve Location in Decentraland – $1.08 million.
- Metaflower Mega Ship in the Sandbox – $646.5K. This lot is a little different from the others – it’s not a website, but rather a virtual attraction that can be deployed on any site.
- The Sandbox package – $646.5K.
And in the last week of November, metaverse land sales surpassed $100 million, with 86 of them coming from The Sandbox. A total of 6,000 traders participated in the trade.
Experts have no doubt that this is the next big thing in the cryptocurrency industry. Digital worlds have enormous potential and it is still difficult to imagine what other opportunities they will open up in the future. One example is that Barbados (an island state in the West Indies) or open your embassy in the metaverse , this is an unprecedented case. An agreement has already been signed with Decentraland. The embassy will be quite functional, for example, you can get a visa there.
Buying or renting land: Tips
Directly
Typically, a metaverse platform has its own marketplace. By connecting to it via a wallet (Metamask or similar), you can purchase the item of interest for cryptocurrency, which will also be placed in the wallet in the form of an NFT.
Let's look at the example of purchasing LAND in Decentraland:
- Go to the marketplace section, where all the items available for purchase are displayed. https://market.decentraland.org/ .
- Click on Start navigation to start browsing the positions.
- The first tab contains land plots. Using the button in the left corner of the market screen, you can select a display option – a visual map or the usual list of plots.
- Click on the lot you are interested in to view detailed information about it: price, owner's name, description, coordinates, available attractions, validity period. By clicking the red Jump In button, you can go directly to the area and run around it in three-dimensional form.
- Make sure your wallet is connected to the platform and has enough funds in it (don't forget about the network fee). Click Buy to purchase a plot of land.
- If there is enough MANA in your wallet, a wallet window will appear where you need to confirm the transaction.
The purchased asset will appear in the wallet in the form of a LAND token. If you use a Trust Wallet , the LAND will appear in the section “Collections” .
Through auxiliary services
One of the platforms designed specifically for buying, selling or renting land in Decentraland is called DCL Renting . Before you start working with it, you need to not only connect your wallet, but also specify your email address.
Available plots of land are listed in the Marketplace section. By clicking Visit on any plot, you can go to Decentraland and tour it.
To rent a lot, click Request. The process is not automatic – you will have to wait for the owner to respond, so the process may take a while.
To complete the transaction, you will need to pay the established monthly fee + 10% service fee. After that, continue paying the installment every month, otherwise it will become unavailable. All processes are regulated by a smart contract. Detailed rules for working with the platform and rental conditions are opened when you click the Apply button for any position.
Another service with similar services and Metaverse.Property . Allows you to buy and rent properties both in Decentraland and in other developments:
- The SandBox
- Dream Space
- CriptoVoxels
- Upland
In the top menu of the website you need to select the option Buy or Rent and then the metaverse of interest. At the time of writing this article (December 2021), there is nothing available for rent. But there is land for sale. To purchase, you need to leave a request and some information about yourself: name, email, company (if any), message to the owner.
Investment risks
Entering the metaverse through real estate investment is a rich income opportunity and a high risk. Of course, there are many stories about how the price of a lot increased significantly over several months. But there is also the possibility that the chosen metaverse will one day become a “ghost town” and all areas will be devalued.
The investor must be absolutely certain that the platform will exist for a long time so that the investment will pay off over time and bring profit. However, the concept is in the early stages of development and so far it can be tossed around.
Sina Kian, vice president of blockchain platform Aleo, mentions another risk – oligopoly. This is the concept of “imperfect competition,” where a market is dominated by a few large companies whose actions affect the entire market.
Advantages and disadvantages of buying virtual land
Frequently asked questions
Conclusion
Some of the platforms listed in this article will probably survive for a long time and be successful, but we cannot be sure which ones. Some may very well fail. Decentraland was one of the first land projects in the metaverso and promises to remain at the forefront for a long time, considering the large number of new investors each week. However, this significantly increases the cost of shares on the platform, making it difficult for newcomers to get started. While some platforms have a limited number of listings available, there is unlimited potential for creating new listings, each with new and unique features.