The metaverse is expanding under everyone’s spotlight. Everyone wants a piece of the slice, and big celebrities are entering the metaverse, fearful of missing out. However, the one thing that seems to unite everyone is the lust for virtual real estate.
The early movers, such as The Sandbox and Decentraland, are leading the way. They are in pole position with their metaverse real estate sales. However, we see a wide variety of different players coming in and having fun. As a result, several other P2E games are in pursuit or have just knocked on the door. On the other hand, we also see the first virtual real estate agents settling in.
What is the real estate metaverse?
Metaverse real estate are plots of land in virtual worlds. In the simplest sense of the term, they are pixels. However, they are more than just digital images. They are programmable spaces in virtual reality platforms where people can socialize, play games, sell NFTs, attend meetings, go to virtual concerts, and perform countless other virtual activities.
With the rise of the metaverse, digital real estate is also set to grow and expand. In fact, the last quarter of 2021 saw a real estate boom in the metaverse after Facebook changed its name to META and indicated a targeted interest in the metaverse. As its popularity continues to grow, the value of metaverse real estate is expected to have a Compound Annual Growth Rate (CAGR) of 31.2% from 2022 to 2028.
What are the main P2E plays of real estate investment in the metaverse?
Among the major players, we can count The Sandbox and Decentraland. On OpenSea alone, The Sandbox lists 162.1K objects. These objects have 19.9K owners. The minimum price is 3.25 ETH. On OpenSea, another 2.1K assets are listed with no less than 27.8K owners. The minimum price for the assets is currently 0.008 ETH. On the other hand, Decentraland lists 97.3K items with 6.8K owners and a minimum price of 4.61 ETH.
In addition, The Sandbox holds the record for the most expensive land sale. Every Realm purchased land for $4.3 million from Atari in December 2021. Also, in November 2021, The Sandbox sold $158 million worth of virtual land.
In addition, Snoop Dogg has the “Snoopverse” in The Sandbox. A place “where he is building a Voxel Art version of his real mansion.” Just like in Diamond Bar, California. “He will hold concerts or virtual private parties and more.” His land includes 22 plots of land, 67 premium plots of land and 3 estates. A fan purchased one of the plots next to his house for $450,000.
In addition, Decentraland sold just a month earlier a single plot of land for 555 ETH. At the time, this was $2.3 million. This was after selling 116 plots of land, bundled together, for $2.43 million. Other well-known P2E games offering land for sale are My Neighbor Alice or Polka City.
Another use case of the metaverse is Manchester City’s construction of a replica of its soccer stadium in Decentraland. The South Korean government is investing $187 million in the metaverse. It wants to build virtual cities, but it also focuses on educational aspects. This gives an idea of what is possible in the metaverse with real estate.
The latest news about the metaverse involves Webbland’s penthouses
In the fast-moving world of the metaverse, Webbland has been in the news. Two weeks ago, they recorded the highest real estate sales. Two of their penthouses sold, each for over $130,000.
- Penthouse #9051 sold for as much as ETH 50 or $139,848.
- Penthouse #9056 brought in no less than 48 ETH. At the time, it was good for $131,830.
The two penthouses ranked 14th and 15th, respectively, among the most expensive NFT plots sold that week. Since then all hell has broken loose for their penthouses. Last week, 5 more penthouses were sold for more than 50 PF.
- Penthouse #9063 sold for 86.9 ETH, or $220,000.
- Four other penthouses sold for between 55 and 70 ETH.
In total, less than 10 penthouses were sold at the highest prices. Before then, penthouse prices did not even exceed 10 ETH. All these figures, according to cryptoslam statistics.
What is Webbland?
Webbland is an interoperable pixel metaverse. It is also an interoperable pixel art MMORPG metaverse. P2E, virtual land and property, pets and quests are offered.
The metaverse is expanding with new services
vEmpire:offers investment opportunities in the metaverse. They were able to purchase virtual real estate in year zero, so to speak. Moreover, the prices were 90 percent lower than they are today. As a result, they offer the opportunity to bet on their VEMP token for 10 projects at interest rates of 10%-20%. A virtual real estate agent in disguise.
Metaverse Properties: offer real estate management and development. In addition, metaverse consulting and marketing are part of their list of services. Of course, they offer virtual land for sale in The Sandbox and Decentraland. However, Somnium Space, CryptoVoxels and Upland are also part of their list. As part of their services, it is possible to buy or rent land in the metaverse.
SuperWorld:is a competitor of the Metaverse properties. They offer 64.8 billion virtual lands in their virtual SuperWorld. However, there is a novelty here as well. You can buy virtual properties, but, brace yourselves, in real-world locations. The Taj Mahal in India is being sold for 50 ETH. Or how about the Eiffel Tower in Paris for 100 ETH? On the other hand, Machu Picchu in Peru costs only 0.1 ETH.
Risks of investing in the metaverse
Although the metaverse is expected to grow tremendously in the coming years, it is still a relatively new and far from stable industry. For example, if a metaverse platform goes offline permanently, all your land and assets in that platform become nonexistent.
Then there is also the issue of valuation. There is always the problem of how to assign a value to land whose scarcity is artificial and whose future value cannot be quantified. Since their value depends on highly volatile cryptocurrencies, metaverse land is also susceptible to volatile conditions.
Prices of virtual land and real estate in the metaverse are skyrocketing. There seems to be no end in sight. Compare that to buying land in big cities. However, with a twist! Before the start of the respective building booms.
Also, some think it is a complete waste of money with excessive market prices. On the other hand, we also see that these high prices attract the attention of outsiders. This is exactly how the NFT market started to grow. The prices of virtual real estate are not likely to decline. On the contrary, the sky seems to be the limit, and if anyone still wants a piece of the action, hurry up!