The Metaverse has opened up a new realm of investment options for individuals, including virtual real estate. Many are wondering why metaverse real estate is selling for millions, with users investing up to $4.3 million for land in some Metaverses.
This article elaborates on how to sell real estate in the metaverse in order to get significant investment returns.
- Metaverse virtual real estate is becoming increasingly popular, with many brands and celebrities looking to enter the metaverse to connect with their target audiences.
- There are four popular Metaverse platforms where users can buy and sell virtual real estate: Somnium Space, The Sandbox, Voxels, and Decentraland.
- Selling land in Metaverse is easy; users can either list them for sale on in-game or secondary marketplaces.
What’s All the Hype Around Virtual Real Estate?
One of the biggest benefits of the Metaverse is that it offers numerous options for individuals to earn, which include selling non-fungible tokens (NFTs), providing designing services, hosting events, as well as selling virtual real estate and land.
Many large brands have also begun establishing their presence within the virtual real estate. These companies include Nike, Adidas, Gucci, Hyundai, Samsung, Coca-Cola, and Prada.
Furthermore, celebrities like Paris Hilton and Snoop Dogg are establishing their own metaverses to interact with their fans within this virtual space.
The metaverse has also become a vibrant space to host events, with renowned artists such as Marshmello and Justin Bieber performing in virtual concerts. Large events including Coachella are also happening virtually, consequently creating a lot of hype around virtual real estate.
Virtual real estate has become an extremely desirable commodity, and metaverse platforms have raised around $1.9 billion through virtual real estate sales.
What is Metaverse Real Estate Actually?
Similar to land plots in the real world, virtual real estate offers users a chance to purchase specified areas (known as pixels) within virtual worlds. These pixels are programmable and users can build their virtual worlds within these land plots.
Each Metaverse platform has a limited number of plots. For instance, The Sandbox only has 166,654 land plots. These land plots can quickly gain value over time, and users can list them for sale to generate profits.
Users can purchase metaverse real estate through in-game and secondary marketplaces. It is important to remember that the location and size of the land are primary factors in determining its price. The closer you are to the center or more populated areas within the metaverse, the higher the price of the virtual real estate.
An excellent example is the purchase of a land plot in The Sandbox for $450,000, where an anonymous individual purchased land right next to Snoop Dogg in the virtual realm.
Why is Real Estate in the Metaverse Selling for so Much?
With land costing only $20 in Decentraland upon its launch in 2017, the average land price has now soared to $6,000. Facebook’s announcement about rebranding to Meta also created massive hype around the metaverse, leading to prices increasing up to 500%.
Investors are willing to pay thousands of dollars in “gas fees” to obtain virtual real estate on platforms such as Otherside. It is also important to note that while new metaverses are being built, the demand for land is only high on popular platforms, such as Decentraland, The Sandbox, Otherside, and Voxels.
With celebrities and brands also purchasing different land plots, the demand for metaverse real estate has increased immensely. Many individuals have started to wonder how to sell real estate in the metaverse because it offers an excellent chance to generate significant returns. A little further on in this article, we list several effective steps you can take to sell virtual real estate in the metaverse.
Risks of Virtual Real Estate
It is important to be aware that there are risks involved when it comes to virtual real estate. Since the space is still relatively new, various risks are associated with investing in metaverse real estate.
For example, since there is no government or bank to secure your purchase, you have no security if something happens to the metaverse platform, such as data breaches.
Also, although the demand for real estate in the metaverse is extremely high right now, it may decrease over time, which would reduce the price of your land plot. This is why it is highly recommended to do a comprehensive research before investing in any metaverse platform.
Large platforms such as The Sandbox, Otherside and Decentraland are relatively safe options as they have gained a lot of momentum in recent years.
Why Sell Virtual Real Estate in the Metaverse?
The potential for significant returns in the virtual real estate market is extremely high. You can either purchase land and resell it, or even become a virtual real estate agent (similar to Metaverse Properties) where you can earn by offering real estate services.
Despite several risks, individuals looking to make money cannot ignore the rising demand for virtual land. The best part is individuals can sell real estate from the comfort of their own homes. The land can be listed on OpenSea or in-game marketplaces, where other buyers can bid for it – allowing you to sell it at a higher price.
Top 4 Metaverse Real Estate Selling Platforms
Virtual real estate prices are increasing exponentially, so if you are looking for the best Metaverse platforms to sell your land in, here are the top four to look at:
With SAND as its native currency, The Sandbox is home to celebrities including Snoop Dogg. The most significant Metaverse real estate sale was also made on this platform, where Republic Realm purchased land worth $4.3 million within The Sandbox. Big brands such as Gucci are establishing their presence on this platform too, contributing to the rising virtual real estate demand within this Metaverse.
Land can be sold using The Sandbox’s in-built marketplace or on secondary platforms such as OpenSea and Rarible. Metaverse land sellers need to consider the transaction fee for selling land plots. For example, The Sandbox’s marketplace charges a 5% transaction fee as well as gas fees.
Decentraland is another metaverse real estate giant with large brands such as Samsung, Nike and Louis Vuitton working on connecting with customers through this virtual space. With over 300,000 active monthly users, this metaverse platform has become extremely popular over recent months.
With Metaverse land sold for up to $2.4 million, this is an excellent platform for users to sell virtual real estate. The platform uses MANA as its native currency and allows users to list land for sale on its in-game marketplace. Users also have the option to sell real estate on secondary marketplaces such as OpenSea.
Voxels (Formerly Cryptovoxels)
Voxels allows users to buy and sell real estate through the OpenSea marketplace. With around 7,351 land plots minted, investors can purchase plenty of plots. Unlike other platforms, this platform does not have a native token. Transactions can be made using Ethereum (ETH).
Users will require a MetaMask wallet to buy and sell land within this metaverse. The wallet must contain enough ETH to purchase the plot. Sellers should remember that OpenSea keeps 2.5% of the selling price, aside from any gas fees.
With around 5,206 land plots currently in circulation, Somnium Space is another excellent option for individuals looking to sell real estate in the metaverse. There are three types of land sizes, i.e. small, medium and large.
The centerpiece of this virtual world is Somnium Waypoint. The closer the land is to this location, the higher the chances of getting a good return when selling the land. Land can be bought and sold through OpenSea using ETH.
How to Sell Virtual Real Estate in the Metaverse?
The process of selling virtual real estate is relatively straightforward.
Follow the steps below to sell virtual real estate in the metaverse:
- You can list your land for sale within the in-game marketplace or on secondary marketplaces, such as Rarible and OpenSea.
- View market prices on your preferred platform or research them by browsing different marketplaces to gain an idea of similar properties and overall pricing.
- Once you’ve done your research, you can click on the profile icon on the top right and click on “sell”. After that, users can select the NFT that they wish to sell from their wallet.
- OpenSea allows individuals to open auctions for other users to bid on the land parcel. The seller can set the time duration of the sale by using the “Timed Auction” feature within the marketplace.
- After all bids have been placed, the land owner can then select the highest bid and approve the sale.
- The seller also has the option for reserving the land for a specific buyer. This can be done by entering the buyers wallet address into the field under the “Reserve For Specific Buyer” option.
- Write a compelling description to get more bids, including details about the plot size, location, metaverse platform, NFT utilities (if any) and more.
- Sellers must also pay a specific fee to process transactions. For instance, OpenSea charges 2.5% of every transaction.
- Once you approve a bid, you’ve finally sold your virtual land plot!
The Future of Virtual Real Estate
The future of virtual real estate is very bright, as many businesses are now looking to enter the metaverse to connect with their customers. Learning how to sell virtual real estate in the metaverse is highly recommended if you wish to take advantage of the metaverse’s current momentum. The rising prices of the metaverse land are a strong indicator of current market demand, with land auctions on platforms selling within minutes of launch.
It is, however, essential to remember that there are various unknowns within the virtual space. What might be popular today may not be relevant tomorrow. The space is rapidly evolving, and we strongly recommend doing constant and extensive research to ensure good returns on your investment.
Real estate in Metaverse has become an extremely sought-after commodity in recent years, and the current market trends have made selling virtual real estate an incredibly lucrative option. It is important to remember that the size and location of the land plot are significant factors in determining its price. Users can sell their metaverse real estate by listing the land for sale on in-game and secondary marketplaces. The seller can either open a timed auction or list for a fixed price to sell their land. To learn more about how to buy virtual real estate, click here.
How much does land cost in the metaverse?
The cost depends on various factors such as land location, platform popularity and size of the land. The biggest transaction was for commercial lands in The Sandbox for around $4.3 million. Regular land plots on these platforms can cost between $6,000 to $100,000.
How to sell real estate in the metaverse?
Virtual real estate can be sold using in-game or secondary marketplaces such as OpenSea. Sellers can set up auctions for their land plots, thus allowing buyers to place bids to obtain the land plot.
Can I get free land in the metaverse?
You can easily get a free parcel of land in the metaverse. To get the land, you must look for free land airdrops or tokens for the upcoming metaverse projects. Join discord groups to stay updated on land drops and remain active, as some projects reward their most active members.