The idea of the Metaverse has become more popular as VR\AR technologies grow and mature, which allows the delivery of virtual and augmented experiences directly into users' daily lives. We are likely to see more use and development of 5G networks, which will be used to deliver these services and advance more quickly than expected. As more people become aware of how it might impact their daily lives, due to Covid-19 forcing many to work from home, investors and new users worldwide, among others, have also been paying attention.
In a recent announcement, the social network giant, Facebook, also announced that it is entering the field of VR/AR. As Mark Zuckerberg, Facebook CEO, says, users can have experiences there that they can’t have on the 2D website.
Meta (Facebook), Microsoft, Google, Nvidia and many other major corporations are pouring millions to billions of dollars into the Metaverse technology.
Any company looking to boost their game can utilize Metaverse technology. Real estate has entered this new world and is currently becoming very popular.
After doubling to $1 billion in sales on four well-known real estate platforms, including Decentraland, Sandbox, Somnium Space, and Cryptovoxels, virtual land has now become real.
Naturally, as companies started increasing their profit margins, they also began investing in more Metaverse real estate, a trend that really took off last year. But is it really worth it? To know more keep reading the blog.
Why are Metaverse Real-Estate Prices Booming?
Days are long gone when the only medium of bread and butter is to go out to the market. Now we buy everything, from tickets to essentials online. The virtual world is becoming a new lifestyle, especially after the world experienced the pandemic lockdown in 2020.
While people have started to enjoy everything online, there is an increased demand to find virtual places including businesses, hospitals, and educational institutions for effective management and ease of access to everything, such as working from home or getting healthy food from the best restaurants online.
There is one Metaverse, but there are several established virtual world platforms, each of which is divided into various regions – akin to continents on Earth. Within the global Metaverse, the number of platforms is effectively fixed – once someone purchases a virtual piece of land, nobody can use that spot, even if they are willing to pay a premium. Until they are either able to buy it from the owner or enter into a rental agreement with them. If many people are interested in that land, the price will rise.
The value inside the Metaverse real estate will be where brands and advertising congregate. For many brands, Metaverse is about signs that show advertisements, much like nowadays, where people wander around the internet looking at an endless stack of signs, ads or billboards. The Metaverse will function like them, but in fact, it will just be far more efficient.
Others, like you may in the real world, are purchasing plots to be close to famous individuals in order to gain favour. Someone paid $450,000 to live next to the famous singer Snoop Dogg, and the Caribbean country of Barbados is even starting to establish an embassy in the Metaverse to be the first country to open an embassy there, while Adidas also bought a land there with multiple brands taking the same way!
Is it Worth Spending on Metaverse Real Estate?
Our increasing digitalized world and widespread reliance on virtual spaces makes Metaverse real estate an inevitable part of the future.
Investing in Metaverse properties has great potential rewards. As we continue to see large companies testing their investment into this promising new frontier, it's clear that tech investors see a significant profit in this new venture.
However, some people don't like the idea of risking their money in the fast growing Metaverse real estate world - their opinion says that ;virtual reality is great and growing now, but by the time they say, that location won't really matter there in Metaverse.
Potentially, prices could also increase as a result of the unexpected influx into a new location. When asked about the current situation of the virtual real estate market, commercial real estate broker Jay Gaudet said: "Right now in the virtual real estate area, you see a lot of folks just are executing on fear of missing out... I'd like to take part in it. I want to dive in, even if I may not know what I'm going to do with it later”.
Buying, investing, developing Metaverse Land
Buying, investing, and developing Metaverse Land is a fun, exciting endeavor. It's also a lot of work—you need to be ready for anything!
Global businesses, including PWC, Samsung, HSBC, JP Morgan and many other companies, are spending lots of money not just buying into the Metaverse, but also trying to define and implement it. PricewaterhouseCoopers is one of the first companies (and first accounting firm!) to set up a “Web 3.0 advisory hub” in the Metaverse, where it is planning to offer a new generation of professional services, including accounting and taxation.
Virtual goods should ultimately provide real utility or have the same monetary value as real money. If virtual goods don't enrich the lives of consumers in a tangible way, then there is a high likelihood of a bubble forming in the market that would hurt consumers and companies alike.
As of now, there are over 25,000 players investing in virtual real estate and other game assets using these cryptocurrencies. We foresee that this industry's future and the growth of the real estate market in virtual lands sounds inevitable.
Exploring the characteristics of Metaverse Real Estate
Real estate in the virtual Metaverse world shares many characteristics in the real physical world, that includes immobility, uniqueness and scarcity. After all, there are only a finite number of wholly distinct attributes available in any one position in the Metaverse.
While buying physical property is unavoidable for the vast majority of people, owning virtual property is an entirely new investment prospect. This recent trend has great potential in the real estate industry, with long-term consequences that will cause its values to rise dramatically. Given its compelling features, real estate in the digital realm will soon experience the same increase in demand as every other asset.
Conclusion
Your first impression of owning a virtual property might seem strange, but take a closer look! To give users a synchronous digital experience, the Metaverse technology will be fully integrated with daily life. That’s why the industry pioneers/big or even small companies are trying to invest there before the prices hit the roof. You might be thinking about getting into web 3.0, but you're not sure where to start. Maybe you've heard about Metaverse development and curious about how it could help your business.
Don't worry! TECHVED is here to help. We have a team of experts who can guide you through the process of getting your business set up on Metaverse, and help you make the most of it. We know that Metaverse is a powerful tool that can change the way your business operates—and we want to help you make it happen. Contact us today, visit our page Metaverse Development and consulting Services.
