In this video, we’re taking a look at why investing in virtual real estate could be
a good idea in 2022. We’ll start by discussing why virtual real estate is worth considering
at all, and then we’ll look at some of the best platforms to find your metaverse real
estate properties. Finally, we’ll explain exactly why analysts think this is going to
be the next digital asset to gain popularity and see massive growth, particularly in 2022.
Why Virtual Real Estate? With the growing popularity in NFTs, digital
assets are becoming less speculative than they used to be. More people are giving value
to digital goods, and are quickly coming around to the idea of a metaverse and the digital
real estate within it. For example, Gucci just ran a limited promotion over the summer
where they created a digital version of their Gucci Garden exhibit, where they gave away
and sold digital versions of their handbags and other items on Roblox.
Aside from corporate brands getting in on the action, virtual real estate developers
are also pumping millions of dollars into the metaverse. One such firm, Republic Realm,
just set a landmark record by buying a $4.3 million piece of land in the meta-platform
The Sandbox. Republic Realm envisions a future where they can rent out space to companies
who want digital storefronts to sell their products. And with companies like Nike including
NFT versions of their products when people purchase the physical item, it seems like
digital storefronts and collections will become inevitable. It’s not much of a stretch to
think these brands will need to rent or own digital real estate to establish their presence
in the metaverse.
Quite recently, on December 17, 2021, MetaSpace Real Estate Investment went live on the crypto
trading platform PancakeSwap. The project’s main goal is to purchase premium metaverse
real estate, develop a high value digital infrastructure, and rent out their properties
to create regular income for its investors. This is essentially the digital version of
a real estate investment trust, or REIT, a common real estate investment in traditional
equity markets.
But you don't have to get involved with a virtual real estate trust nor do you have
to be a huge corporate conglomerate to own land in the metaverse. And the fact is, if
these massive businesses and projects are putting millions into the metaverse to reserve
properties for demand that may come in the future, we might want to start doing the same
as individuals. Because it’s early and land in the metaverse is still cheap, now could
be the best time to start buying up virtual real estate to rent it out to others down
the line, or simply to sell it when the price is higher.
Virtual Real Estate Isn’t New The crazy part is that metaverse real estate
isn’t even a new trend. Second Life, a popular game that's been offering players the ability
to develop their very own virtual plots of land to inhabit with their digital avatars,
has been pioneering virtual real estate since 2003. This led to the first virtual real estate
millionaire in 2006, after a player spent 2 years building up their real estate portfolio
within the game. Today, there’s hardly any real estate for sale in Second Life, as almost
everything has been purchased. Now, you’re pretty much stuck with rentals, which means
the opportunity to make money is not what it used to be.
However, there are several platforms today that are still in the early stages of developing
and selling their virtual real estate. If Second Life or the massive investments into
metaverse properties are any indication, now is the time to be purchasing land on these
up-and-coming platforms. So let’s take a look at some of the hottest virtual real estate
on the market. Decentraland
Much like Second Life, but updated for the modern world, Decentraland is a 3D decentralized
VR platform that consists of over 90,000 parcels of land. Virtual real estate takes the form
of NFTs that can be bought and sold with Decentralands native Ethereum based cryptocurrency.
This platform got it's start making virtual land sales back in 2017 when it's native currency,
a crypto token called MANA, was worth just a few cents. Back in December of 2017, a property
simply called LAND was sold back in December of 2017 for a little over a hundred bucks.
In December of 2021, that same lot sold for close to $14,000, which is a massive ROI for
just a few short years.
In June 2021, Sotheby's, the world-famous London-based auction house, created a virtual
replica of it's headquarters to serve as a gallery to showcase digital art. That same
month, Republic Realm paid almost a million dollars for 259 parcels of Decentraland real
estate to turn into a virtual shopping district modeled after Tokyo's Harajuku shopping haven.
Brands are paying a lot to develop a presence in the Decentraland metaverse, which means
it could be a great platform to start buying some digital propert for yourself.
The Sandbox Here we have another blockchain-based 3D virtual
world, but unlike Decentraland, The Sandbox is geared towards more casual gamers. Think
Roblux or Minecraft, but for adults. It's available to play on iOS or Android devices
and also on PCs running Windows.
The Sandbox allows players to build, own and monetize their gaming experience. It consists
of three integrated products that combine to provide players with a platform that allows
for an infinitely customizable space to experience user-generated content.
These three components are the Vox Editor, which allows users to create virtual models
of just about anything, then rig them, and animate them reasonably quickly.
Then there is The Sandbox marketplace, which is an open market environment that permits
users to sell and trade their virtual assets freely.
The final piece of the puzzle is The Sandbox game maker, which gives players the ability
to share, build and monetize their own games on The Sandbox's online 3D gaming platform.
The alpha of The Sandbox Metaverse launched on November 29, 2021, and public figures such
as Snoop Dogg, Deadmau5, and even legendary RPG developer Square Enix, have already been
buying up plots of virtual land for promotional development.
Somnium Space
Another VR platform that has been making waves in recent months is Somnium Space, which launched
in early 2020. Somnium Space is a simple Metaverse that is divided into lots throughout the map,
including rural, island and waterfront properties. Each plot varies in size, which determines
the limitations on the property in terms of what you can develop there.
Users can create environments that are all fully customizable and programmable within
the larger, interconnected ecosystem. You’ll also create your own avatar, which you can
use to explore the dynamic and rapidly developing world. Virtual property and other in-game
assets are available for purchase at Somnium's NFT marketplace. Users can also monetize the
VR experiences they create, which incentivizes further development of the virtual world.
Built on the Ethereum blockchain, Somnium is even thinking about launching its own standalone,
open-source VR headset. The platform recently announced its plans to allow users to own
whole Metaverse layers called Somnium Worlds, but we don't know much about this proposal
as of right now. CryptoVoxels
Cryptovoxels is another VR open-world metaverse built on the Ethereum blockchain. Simply put,
it allows users to buy and sell virtual properties and other assets within it's immersive world.
The best thing that CryptoVoxels currently has going for itself is it's diverse community.
There are creators and landowners, spectators, and everyone in between.
It provides prospective digital real estate owners and builders with a very Minecraft-esque
experience with it's fairly easy-to-use vox editor. Recently, some of the world's most
prominent cyptoartists have turned to Cryptovoxels to show off their creations.
The central hub of Cryptovoxels is called Origin City. On April 8, 2020 the last Origin
City plots were sold at auction. What that means is that parcels of land in Origin City
can now only be purchased on secondary marketplaces. They’re already getting expensive and will
likely only increase in value as demand increases and Cryptovoxel's user base expands. It’s
definitely not too late to join the party, but you may have to make a larger investment
here to purchase land from someone else. Upland.Me
Upland is a virtual real estate metaverse that offers its users ownership of NFT land
parcels mapped to real-world addresses. It's a blockchain-based game where users can trade,
buy, or sell properties and monetize their creations to earn UPX coins.
What sets Upland apart from other blockchain-based games, is it's aim to create a market-based
metaverse economy blurring the lines between the digital world and the real world. While
you might own a piece of physical real estate, Upland allows you to own your property in
the virtual world as well. To clarify, this means that Upland is one of the few metaverses
that aims to mirror the real world, while most other metaverse projects are creating
digital worlds that are unrelated to any real-world locations.
Every day more than 60,000 active users buy, sell and trade digital properties, build houses
and other structures, and participate in city tours and treasure hunts. Players can buy
digital assets within the game or sell their holdings using Tilia Pay, the same network
that Second Life has been using for years.
A few cities that are currently live in Upland include San Francisco, Brooklyn, Cleveland,
Oakland, and Chicago, but more are expected to be announced in the near future.
Virtual Real Estate Boom In 2022 Now that we’ve covered some of the hottest
metaverse projects for virtual real estate, here’s why analysts are expecting a massive
boom in 2022.
First, the value of virtual real estate transactions processed through the third-party marketplace
NonFungible.com increased by more than 20,000% in the last year. Overall transaction numbers
have also increased by 677% since January 1st of 2021.
These massive increases are primarily driven by commercial interest in virtual real estate.
Just a year ago, there were hardly any brands active in the metaverse, but as we've seen
in this past year, that's changing very quickly. Celebrities and big-name corporate brands
are moving rapidly to get their names and products out there in the digital frontier.
A ton of companies are working on plants to develop virtual retail shops, event spaces,
and even the virtual equivalent to AirBnb weekend rentals.
It's speculated that by the spring of 2022, there is going to be a huge bump in virtual
real estate sales. And we might just be seeing the early indications of the demand to come.
As the market continues to grow, as it's looking more and more certain to, you can expect prices
and demand to increase exponentially.
So if you're looking for a decent way to get in early with digital assets, virtual real
estate in the metaverse may be one of the best options right now. Whether you choose
to flip your properties down the road for a hefty profit, or develop them to collect
rent payments and passive income, the metaverse seems ripe for money-making opportunities.
Or, if the thought of digital real estate bores you, check out our previous video on
how you can have much more fun earning money by playing NFT games. Leave us a comment if
you have any questions or requests, and we’ll see you in the next video!