Virtual Real Estate On The Rise: Metaverse Backers Spend Millions On Virtual Property
The real estate market has obviously changed dramatically in recent years.
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From the beginning of the epidemic through the emergence of some breakthrough technologies, which creates the lack of stability in the market; but at the same time, creates many opportunities.
Almost all commercial activities have been halted as a result of the COVID19.
Real estate is unquestionably one of the businesses most affected. The main concern is how we can invest while sitting at home and what the real estate industry’s next move will be.
Looks like the Next NFT Wave is Here
The year 2021 marks a significant development milestone for NFTs, with tens of millions of dollars in NFT works causing a stir in the media. NFTs opened the door for the next exciting development in the blockchain industry: Metaverse.
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Real estate investors soon recognized the opportunity and jumped on board with the virtual world.
In an interview with CNBC, Tokens.com CEO Andrew Keagle highlighted some of the key factors that have motivated a number of investors to pay millions of dollars for landholdings, noting that “prices have gone up 400% to 500% in the previous few months.”
Although the parcels of land just exist in the virtual world, they are real gold mines.
Buying Up the Metaverse
This fragmented form of real estate investment is based on the blockchain technology and NFTs, allowing investors to participate in the purchase of a single property.
In other words, each investor will have the right to buy and own a certain amount of land on the property in the form of NFTs.
Keagle is also a metaverse supporter. Tokens.com recently invested almost $2.5 million in Decentraland (MANA). The company’s ambition is to develop a chain of virtual stores that cater to luxury brands just like in the real world.
“The metaverse is the next iteration of social media. You can go to a music concert; you can go to a museum, all types of different experiences that you can explore and get immersed with,” noted Keagle.
Interest in the unreal estate is on the rise. Republic Realm, a metaverse-focused investor and developer just paid a record amount of $4 million to invest in a digital plot of land on The Sandbox (SAND).
The sale became the most prominent. According to the company’s CEO, Janine Yorio, the firm generated $1,5 million last year by selling 100 private islands on the platform.
“Today they’re selling for about three hundred thousand dollars each which coincidentally is exactly the same as the average home price in America,” said Yorio.
According to the firm’s representative, a piece of Genesis land in the world of Lunacia was also sold for 550 ETH, equivalent to $2.3 million at the time of selling.
Massive Money is Moving
Spending millions of dollars on digital land may appear insane, but it is actually a logical step that corresponds to forecasts about the future of virtual reality. Virtual real estate transactions are booming right now, and they’re attracting a lot of money.
The metaverse real estate craze began in November 2021, when in-game land lots such as The Sandbox, Decentraland, and Axie Infinity were purchased for millions of dollars.
People who rush to buy virtual land believe that the price will rise in the future; just purchasing and selling again and again is also beneficial.
Some significant investment funds intend to construct commercial centers on game land plots in order to arrange events and fairs for entertainment and shopping purposes.
Real estate assets will be digitized and represented by non-fungible tokens in the digital real estate ecosystem, which will allow for digital transactions and circulation.
Despite the fact that many individuals have begun to express concerns about the true value of investments in the digital real estate market, experts predict unreal estate will become the next trend in the coming years.
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