Real estate has a proven record of being one of the best investments for centuries. But up until a few years ago, real estate was all in the real world. Now, it has transcended far beyond into the digital world, which is known as the metaverse. The thought of metaverse real estate might sound foreign such as how one live in an NFT community that’s completely made of minute pixels. But interestingly, the process is quite similar to buying a property in real life. That raises one of the most important questions:
What is Metaverse Real Estate?
The metaverse real estate is nothing more than pixels on your computer screen. But what makes it unique are the platforms designed to be programmable environments. These programs allow users to socialize, trade NFTs, play video games, promote products and services, and even participate in meetings using 3D avatars within the metaverse.
In the metaverse, real estate plots are up for grabs. From residential to commercial, all plots of land and structures are present. The prices may vary based on location and can go as high as a few million dollars. The value of digital real estate is rising as the metaverse expands. In reality, after Facebook changed its name to META and signaled a specific interest in the metaverse, there was a surge in metaverse real estate in the fourth quarter of 2021. Property in the Metaverse can be built, purchased, and sold like traditional real estate. Owners of virtual land or space can easily rent it out to others. Transactions on Metaverse real estate are far less complicated than traditional real estate because users can identify suitable properties, handle paperwork, and communicate with brokers and agents from the comfort of their homes.
The metaverse real estate is nothing more than pixels on your computer screen. But what makes it unique are the platforms designed to be programmable environments.
How To Buy Real Estate In Metaverse Choosing The Right Platform
All major blockchain platforms, including Ethereum, Polygon, Algorand, Solana, and others, currently provide the foundation for building a virtual world. That implies that a blockchain-based metaverse is backed by the potential of a smart contract, which requires specific actions to be taken in response to particular circumstances. It requires decentralized finance for maximum functionality, hence cryptocurrencies and NFTs must be enabled. One can use those platforms to create real estate properties within blockchain metaverse platforms such as Decentraland, Sandbox, and others. Creating a larger and more specialized platform requires starting from scratch with a metaverse ecosystem and adding real estate properties.
Creating A Smart Contract
A metaverse smart contract is a collection of immutable rules that cause particular actions to be performed when certain conditions are fulfilled. One feature of the smart contract is the ability to initiate a transaction between a client and a seller after both parties click on Agree. Smart contracts can also be utilized to specify and undertake leasing agreements between two or more parties. This contains severing the agreement if the renter violates rules or conduct guidelines.
Smart contracts are the basis for fully utilizing the benefits of the real estate metaverse environment. Using an NFT smart contract, one can tokenize real estate assets and convert them into non-fungible entities
Designing The Property
After choosing the metaverse digital real estate platform, the next step is to build the metaspace.
Meta Spaces include apps, virtual conference rooms, virtual meeting rooms, and even virtual home theaters. Metaspace can be entered by a user wearing a VR headset. It entails creating the architecture of the building. A metaspace can be as small as a single room or as large as an entire metropolis. In the real world, similar architectural design skills are required for real estate properties. With the assistance of a metaverse development company, you can easily carry out 3D designing and virtual reality application development following the goal of a blockchain-enabled platform.
Building The Layers
The development of the interaction layer is the next part of the process. Users now create application logic that will allow assets and characters to interact with the metaverse real estate. Users now create application logic that will allow assets and characters to interact with the metaverse’s digital real estate
This layer governs ease of access, navigation, protocols, and user controls. An easy example is when a user enters the main gate of a real estate establishment, such as an event hall, using an entry pass. At this layer, the integration with external apps must be specified. For video calling, for example, devices such as Zoom, smart glasses, virtual reality goggles, headsets, haptic gloves, sensors, and so on are required.
At this layer, users develop the link between the real world and the activated metaverse. Next is Interoperability which broadens the reach of the metaverse and also broadens participation. For example, a user in one metaverse may wish to purchase and attend an event taking place within a piece of property in the other.
Interoperability between various underlying blockchain technologies is critical to achieving the same goal. To build a fully workable virtual world, users must encourage cross-environment transactions.
Monetizing The Metaverse Real Estate
Because of its characteristics, Metaverse real estate is significantly more adaptable. Users can easily buy a plot of land and convert it into any type of structure, such as a school, store, gallery, or event space. In this market, the potential for developing ROIs for real estate enterprises is enormous.
The NFT real estate metaverse is a rapidly growing market, attracting both businesses and consumers. Real estate assets can be converted into non-fungible tokens, or NFTs, to provide owners with passive income.
Businesses can propose tokenizing a space, a plot, a structure, or an entire city into one or more NFTs. NFTs now represent a variety of assets in the form of objects, avatars, talents, and other assets. Brands and companies can open stores in the metaverse where consumers can discover and buy their commodities by integrating the metaverse into their systems. All they need to do is click on the product and pay with the method they selected before signing up in the metaverse.
Takeaway
As its popularity grows, the price of metaverse real estate is expected to rise by 45.2% CAGR from 2020 to 2025.
People in the Metaverse can now buy a piece of property and earn regular rental income from it, removing the geographic barrier that previously prevented the sale of real estate. Furthermore, For NFT trade, digital plots of land and metaverse real estate hold a lot of promise. This is how metaverse can help by providing users with a unique and profitable way to engage in virtual reality.