metaverse property portfolio in real estate

Meticulous zoning may be essential in creating an upscale digital streetscape, but could be far less relevant in a game world where people battle orcs or play as goblins. And likewise some types of development restrictions we see in the physical world – such as height restrictions on roller coasters – may becompletely unnecessaryon metaverse land because digital space isnot beholdento the conventional rules of earthbound physics.

But overall, there will be significant value in creating digital spaces that feel intuitive and consistent to users – which means some degree of planning will often be vital.

Digital assets and platform choice

In addition to the question of where digital and metaverse land is most valuable geographically, there’s also the question of which platforms are most valuable to build in.


Nevertheless, it’s still possible to reason about what might drive value for users in our ever-expanding digital space.

Metaverse land and real estate

People have talked about the concept of “digital real estate” for decades. Historically, the phrase has referred toscarce space– often dedicated to advertising – on a given publisher’s website, like theNew York Timeshomepage. Today, people have grown accustomed to centralized entities and attention aggregators – the likes of Facebook and Google – owning many of these spaces, which they rent out.

Digital real estate has always had value.What’s differentabout web3is that digital asset paradigms likenon-fungible tokens(NFTs) make it possible for individuals to uniquely own – not just rent – specific pieces of digital real estate and metaverse land and locations for private or shared use.

Metaverse property portfolio in real estate

  • Sandbox LAND grew by 15,000% in 2021. It also had the largest transaction volume in the same year with a total amount of $350 million for 65,000 transactions in virtual land.
  • In 2021,metaverse real estate sales on the four major platforms reached $501 millionand are expected to double to $1 billion this year.
  • A research study that put the market size value of the metaverse at $47.69 billion in 2020 forecasts the same market to have arevenue of $828.95 billion in 2028.
  • The average price of a parcel in major metaverse platforms hasincreased from $1,265 to $12,684.
  • Metaverse real estate investments come fromonly about 25,000 individual crypto wallets.

Most statistics on metaverse real estate appear to be positive.

Metaverse property portfolio in real estate agency

Likewise, one is more likely to go to a metaverse concertwith friends when either the friends or the musical artists (or both) are difficult to see in-person. And while many people will soon be having meetings invirtual conference room spaces, nobody is going to want to take long, boring “commutes” in the metaverse when they could just “teleport,” moving between digital locations instantly. Meanwhile, the metaverse will always be the go-to when it affords experiences that are not available in the physical world – like swashbuckling or exploring distant galaxies.

All of this is still in its early stages, making it difficult to predict precisely what will create the greatest and most lasting value.

Metaverse property portfolio in real estates

You can choose from waterfront or roadside properties to build your own space. You can import objects such as avatars and monetize your digital assets.

Land parcels and in-game assets in Somnium are tokenized. Ownership is authenticated and recorded on Ethereum and Solana blockchain.
Parcels in Somnium Space sell fora median price of $11,500. The most expensive lot was sold for $43,100 in February 2022. Those interested in purchasing parcels but with limited funds can still grab smaller parcels sold at around $2,000 to $4,000.

Aside from the Big Four, there are now more than a dozen platforms selling metaverse lands.

The percentage of properties for sale in both Decentraland(MANA1.95%) and The Sandbox(SAND1.56%) have to dipped to serious lows since that time, with sales in Decentraland hitting 0.97% in July, and those in The Sandbox dipping to 1.01% in June.

Both Decentraland and The Sandbox have seen a similar drop in for-sale properties, indicating that speculators may well have exited the platforms for now, since the cash left to grab is no longer fast and easy. Simply put, the number of properties that are available for sale at this time is very few, as more owners seem to be holding on to their virtual real estate. But despite that, some properties are still bringing in more than their initial sale prices.

You can also use it as a social area for you and your global pals to reconnect, show off your avatar’s distinctive wearables, and meet new people.

Why Is Investing in Metaverse Real Estate Important?

Metaverses outperform the actual world regarding the possibilities you can create with your “land.” You can build a retail mall, a home, or a skyscraper in minutes. Because transactions in the Metaverse are swift and straightforward, the value of a digital item grows exponentially.

Investing in Metaverse real estate is akin to playing Monopoly. You would ideally want to purchase as much property as possible.
The location of a piece of property is quite essential when deciding which one to buy.

A list of investments made by funds managed by Andreessen Horowitz (excluding investments for which the issuer has not provided permission for a16z to disclose publicly as well as unannounced investments in publicly traded digital assets) is available at https://a16z.com/investments/.

Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

The platform also has built-in tools for editing, creating avatars, and chatting.

Creators and brands can purchase digitized land to build galleries and stores that showcase their curated collections, products, or services. A parcel of land at Cryptovoxels currently sells atan average of $5,000 per lot, but prices can go as high as over $10,000 depending on the size and location of the property. Like other virtual worlds on the Ethereum blockchain, land ownership is permanently recorded on the blockchain.

Somnium

Somnium Space is a blockchain virtual reality metaverse built entirely by the players themselves.

The 3D virtual world gives users immersive VR experiences that can be accessed on desktops and on mobile devices.

The virtual space is divided into parcels of three different sizes: small, medium, and extra-large.

In the physical world, there’s significant value to having a house in the suburbs because it affords more space while still making it possible to work in the city nearby. But when it’s possible to commute by teleporting, it doesn’t matter whether your virtual “home” is anywhere near your “work” in the underlying metaverse geography.

More broadly, in the metaverse, people are unlikely to engage in time-consuming long-distance travel when there’s the option of teleporting. The one exception is when long-distance travel is itself a valuable or entertaining activity – such as taking a virtual ferrywhere one can explore and play games while in transit.

All of this means that the value of metaverse land and real estate to users will likely depend on what’s locally proximate, rather than on the full geography of that metaverse.

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