Celebrities and investors are making a beeline for the next big thing in global real estate- Virtual land on the Metaverse! Here’s examining this phenomenon in some more detail.
What’s behind the craze for virtual land or real estate investments? With technology taking over and simulating our lives in multifarious ways, virtual real estate was just around the corner! Real estate developers and tech companies are now anticipating growth in demand from Indian investors with regard to snapping up virtual real estate on the Metaverse. Some companies are already planning the development of mega virtual cities while popular singer Daler Mehndi has already confirmed his purchase of virtual land on the platform. The phenomenon is not just restricted to India; experts feel that the trend will continue with almost any buyer being able to purchase virtual land while others can build platforms for selling the same.
Companies like Lepasa have got into the space heavily. It is planning 15-20 cities along varying themes and with areas of more than 416 sq km for instance. Metaverse land may be used by several brands for developing their own retail spaces and experience centres for displaying products. Instead of downloading various games, people may play everything on the Metaverse eventually. This will go a long way towards scaling up the value of virtual real estate. It is a new realty concept that is making waves now, after the VR and AR revolution. In fact, many developers perceive this phenomenon as a natural progression after digital walkthroughs, 3D tours and online bookings.
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What is Happening in the Space Currently
There are several companies who are developing these virtual worlds currently and they are sub-dividing them into smaller land parcels purchased in the manner of NFTs or non-fungible tokens. Some companies are helping buyers with the registration for claiming absolute ownership of the plot in question. The asset value may automatically increase with good infrastructure nearby and the same principles apply as in the physical world of real estate. Experts also predict that leading developers will eventually hold control over the space. They may try to get more big brands into their cities for showcasing products and enhancing virtual land values.
Investors in cryptocurrency are already showing interest in buying virtual land. Daler Mehndi, as mentioned, was the first one in the country to buy virtual Metaverse land and was the first one to perform in the Metaverse as well as far as Indian celebrities are concerned. He has christened his new virtual asset as Balle Balle Land, acquiring it via the PartyNite platform. The singer will be hosting several concerts and movies here with its own Daler Mehndi Store offering merchandise in the form of NFTs.
Learning More About the Intricacies of the Process
- Virtual lands are plots/spaces that you can purchase or sell digitally or develop upon and check out.
- The Metaverse talks of a more connected and 3D world where there is a fusion of the real with the digital via AR and VR.
- Users will soon socialize in their virtual avatars, explore new zones and build more content. It will ultimately become a place for playing games, working, learning more and networking.
- After buying virtual land, investors may ask architects or designers to come up with plan and then hire game developers for the final build. It could be anything from a theme park to a mall or any commercial space.
- Real estate purchases virtually will help investors network and link up with others on the platform. They may use their virtual properties for games and other purpose, monetizing its content eventually through access charges or NFT trading.
- Brands may latch onto virtual assets for advertising, promotions, events, launches and unique experiences for customers.
- Virtual land may be purchased only with digital currency or cryptocurrency. Signing up with Metaverse-based platforms like The Sandbox, Axie Infinity and others is also essential in this regard. You can also buy via property managers and brokers in this world.
Record Deals and Celebrities
- Reports estimate a $1 trillion value for the digital platform in the future.
- In fact, Republic Realm made history by snapping up a virtual plot for a record price of $4.3 million.
- Another record transaction includes Decentralland selling for $2.4 million in cryptocurrency.
- Samsung has already opened its store in this region and it is a replica of the New York flagship outlet.
- Adidas and Nike have also got into the market with the former purchasing land via The Sandbox while the latter partnering with Roblox for buying and setting up NIKELAND as a platform.
- Snoop Dogg has his Snoopverse at The Sandbox for virtual concerts, parties, exhibits, shopping and even a replica of his mansion in California.
- Paris Hilton has her virtual island on Roblox, named Paris World, containing digital versions of her closet and home in California. Viewers can buy her outfits after exploring her wardrobe.
- Even HSBC has purchased virtual property via The Sandbox, intending to use it for e-sports, sports and gaming purposes in the future. This much-talked about entry comes after that of Siam Commercial Bank from Thailand.
