It seems as if with each passing day, some company or celebrity comes out with a new announcement about buying digital land, putting on a virtual concert, or starting some other metaverse project. While some of these may be little more than cries for attention and headline-seeking behavior, their plays could also be the result of a convergence of trends.
What is Digital Land?
There is a lot of interest in the metaverse, and buying digital land is one way to invest in its future. Interactive digital worlds seem to offer limitless possibilities. Notably, the crypto asset management firm, Grayscale, recently reported that the metaverse economy could grow to $1 trillion in the near future.
This article will explore how to buy land in the metaverse, which platforms sell it, and how to go about it. But first, let’s take a brief look at the metaverse.
What is the Metaverse?
The metaverse is a network of 3D worlds. It’s a virtual community where our physical and digital lives will merge one day. You can think of it as a place where we’ll not only play games but where we’ll work, relax, transact, and socialize.
But in actuality, there is no all-encompassing and exact definition of the metaverse. What we do know is there won’t be a single virtual world. Even though Facebook changed its name to “Meta,” it won’t control the metaverse. Instead, we will see many virtual worlds taking shape, each adding a three-dimensional layer to the internet.
The metaverse is still in the early phase of its evolution. But as time goes by, the experiences will become more natural. It will be a place where people can access goods, services, and social occasions.
While it’s unlikely that the metaverse will overtake all human interactions, it is poised to seep into many sectors of our lives in some form or fashion. Not everything the metaverse offers will be relevant or appeal to every business. However, Microsoft is already creating realistic workspaces, and A-list musical artists are holding virtual concerts. So, big things are already happening. The metaverse will be a place for brands and consumers alike to explore new and exciting opportunities.
Web 3.0 and the Ownership Economy
The metaverse concept is not brand new. It more resembles a linear progression starting with role-playing worlds like “Second Life” that have been around for roughly 20 years. Modern versions such as Fortnite, World of Warcraft, and Minecraft have hundreds of millions of users and support large economies. A key difference manifesting in the blockchain world is the ownership economy directly attributable to Web 3.0.
People interact as avatars on a standard computer screen in today’s virtual worlds. But Meta and other firms see future virtual environments being 360-degrees and 3D. These new worlds will be accessible with VR headsets like Meta’s Oculus.
Web 3.0 is here, and you don’t want to fall behind. Get started with the Crypto for Beginners Course at Moralis Academy!
Virtual Reality and Augmented Reality
A convergence of new technologies is helping enable the metaverse vision. Virtual reality (VR) and augmented reality (AR) headsets are becoming more powerful and affordable with better UX. Moreover, the blockchain is producing digital currencies, and NFTs are creating new ways for people to transact and own digital assets.
For example, if you want to build a virtual home, you would first purchase a plot of virtual land. Next, you could decorate your virtual home by purchasing NFTs of digital art.
The metaverse will open up new ways to engage with each other. It will ultimately lead to unique business opportunities, and buying digital land will be one of them. After all, some investors are already paying millions of dollars for these virtual plots.
Please check out the blockchain in supply chain and Web3 browsers for other exciting topics to dive deeper into.
What is Digital Land and Why is it Expensive?
Everyone knows that prime real estate can sell for millions of dollars. But it’s not only in the usual haunts like Beverly Hills or Manhattan. In this case, we’re talking about the metaverse.
The virtual land market is growing, with the average price per plot doubling from $6,000 to $12,000 during six months in 2021 (June to December) across four leading Web 3.0 platforms. Other parcel prices have rocketed up 500% since Facebook changed its name to Meta.
This growth is primarily due to big brands vying to buy land in the metaverse. They’re using these plots for virtual stores and other commercial interests. Others are merely speculating and will sit on their empty parcels to sell later.
For instance, in June 2021, a lucrative parcel in Decentraland went for $913k. A virtual real estate development company named “Every Realm” purchased this virtual piece of terra firma and built a retail complex modeled on Japan’s Harajuku shopping district.
In a CNBC interview, Every Realm owner, Janine Yorio, said they sold 100 private islands in the metaverse last year for $15,000 each. Now they’re selling for $300k.
How to Buy Land in the Metaverse? Location
Just like in the real world, successfully buying digital land is all about “location, location, location.” But investors must also factor in usage and long-term potential. The most expensive virtual properties naturally appear at locations where many visitors congregate.
Not surprisingly, the heavily trafficked areas are reeling in the “whales” because these kinds of places will be attractive for retailers and advertisers looking to capitalize on the crowded demographic. Such investments are comparable to the board game “Monopoly,” where everyone wants the “Boardwalk” property.
Fortunately, buying virtual land is a straightforward process. Investors can deal directly with a platform or purchase from a developer. Landowners can then build, renovate, decorate, and make their plots as interactive as they please. Whatever one can do with code, one can do with virtual real estate. Now that you understand the metaverse better, let’s look at some of the top metaverse land projects.
To learn about other exciting crypto projects, be sure to read our “What is Litecoin?” article.
Buying Digital Land on Decentraland
Decentraland is a user-owned virtual world on Ethereum. It is a place to explore, interact and play games. You can buy plots of virtual land in the various districts to monetize your buildings, content, and marketplaces.
You can build everything from art galleries to family homes and hangouts. This virtual platform recently attracted the likes of Tokens.com, which spent close to $2.5 million on a virtual plot.
Buying Digital Land on The Sandbox
Another hot metaverse property is The Sandbox. One well-heeled fanboy already paid $450,000 to live next door to rapper Snoop Dogg. Not to be outdone, Republic Realm set a virtual land record by forking out $4 million for a parcel.
The Sandbox is a decentralized NFT gaming metaverse on Ethereum where players can create, sell, and wield their own NFTs. However, what makes The Sandbox unique is that non-tech people can participate as readily as the tech-savvy. It’s a place where users can generate content and contribute to the metaverse without coding skills.
So, if you’re interested in The Sandbox, you can create games there for free. But to publish them for other players to play, you must buy digital parcels of land (LAND).
The Sandbox offers official LAND sales to the public on their website. Each LAND is an NFT token. But before purchasing, you should investigate The Sandbox’s metaverse map. That way, you’ll be more familiarized with the landscape. You can also buy LAND at OpenSea’s marketplace. In the future, investors will be allowed to rent LANDs or merge smaller plots of adjacent LANDs into larger parcels called “Estates.”
If you are interested in other chains than Ethereum, read our “Cardano vs Solana” article.
Buying Digital Land on Somnium Space
Users can create customizable virtual environments on Somnium Space to participate in a more connected world. Somnium Space has a builder module for designing structures, an NFT marketplace for trading assets, and an SDK for creating and customizing property.
More importantly, Somnium Space allows its users to buy land for homes and buildings in the metaverse. Users can also monetize their environments and explore the creations of others.
Buying Digital Land on Cryptovoxels
Cryptovoxels is another virtual world powered by Ethereum where users can buy land in the metaverse to build homes and commercial spaces to monetize their virtual assets.
Buying Digital Land on Upland
Upland is a game where players can buy, sell, and trade property. It’s a city-building metaverse designed for players to explore, purchase properties, and meet other virtual pioneers. Upland built its digital economy on the EOS blockchain, and its users can trade virtual real estate mapped to the real world.
Why not learn how to build games with EOS? Take the EOS Programming 101 course at Moralis Academy today!
What is Digital Land and Where to Buy It?
Now that you know about virtual land and some of the platforms that offer it, let’s examine the different ways to buy it.
Buy Land in the Metaverse – The Platform’s Marketplace
Metaverse platforms selling virtual real estate have built-in marketplaces you can use. Typically, these marketplaces display the asking price of the parcel’s unique coordinates on the platform’s map. You can also find the property’s proximity to popular sites, business districts, and mass transit stops. Any plot improvements should also be available.
The platform’s marketplace will offer lots of information but typically won’t include the prior sales records of your particular parcel nor that of the nearby properties.
Buy Land in the Metaverse – Third-Party Marketplaces
There are also third-party marketplaces such as OpenSea, where you can buy land in the metaverse. These sites allow you to see properties currently for sale and the sales history.
Third-party marketplaces can carry multiple platform listings at any given time. The advantage here is that you don’t have to limit your search to one platform. You can find properties from different virtual lands (such as Decentraland and Somnium Space) and others. You can use them as a guide to narrow your search in the same way people use Expedia to find different airlines offering the desired flight.
But the most significant advantage of using these marketplaces is the chance to view the property’s sales history. You can also research the adjacent properties to help better evaluate whether the property in question has an asking price that’s in line with the market. However, no two plots of virtual real estate are identical, so some price variation is normal.
Buy Land in the Metaverse – Real Estate Agents
Searching for metaverse real estate with an agent is an emerging trend. These agents already exist, but finding them this early in the game can be challenging.
Metaverse real estate agents aren’t in abundance yet, but they can help investors locate the correct metaverse parcel for their needs. Presently, there are no licensing requirements. But these people tend to be licensed real estate agents in the real world.
One such agency is “Metaverse Property” by Metaverse Group. They advertise virtual land for sale or rent in the top locations for individuals, enterprises, and institutions. But you can also search for agents on LinkedIn. It might be a good idea to pick an agent from your city or state so that you can meet them in person before doing business.
Choose Your Path
If you’re interested in owning land in the metaverse, the process will be a journey like any other real estate venture. You just need to choose your path.
If you like doing research, there’s plenty of information available to consider. However, if you don’t trust yourself or feel that all this metaverse land stuff is outside your circle of competence, hiring a metaverse real estate agent might be the way to go.
How to Buy Land in the Metaverse? – Summary
Even the giddily optimistic proponents of metaverse land ownership would say that investing this early is a risky undertaking. Besides, crypto is highly volatile, so it should be no surprise that blockchain-based lands are risky investments.
Nevertheless, lucrative gems are out there for the risk-tolerant pioneers willing to put in the research.
Every crypto investor dreams of finding that gem in the metaverse before the price soars. However, a safer and possibly smarter way to consistently profit is to become a certified blockchain developer. There’s a red-hot job market awaiting those who do!
