Real Estate has always been a great investment option, preceding gold, equities, mutual funds, bonds, and other securities. American novelist Mark Twain re-established this notion when he said, “Buy land, they aren’t making them anymore.” Many people now dream of owning land or making real estate investments as the population grows and inflation hits its highest point. What if we told you that owning digital lands is more profitable than owning physical ones, even if they are not tangible? Yes, you read that right.
Many people may find the idea of virtual lands surprising, but for those familiar with games like Farmville and Clash of Clans—it might not sound such a huge deal. The metaverse, powered by cryptocurrencies, is, without a doubt, the most alluring attraction for real estate buyers.
But hold on. Aren’t the main components of real estate assets verifiability, locations, and long-term investment? You would be right in that regard because the goal of metaverse in real estate is to replicate it in the virtual world while preserving all of its crucial elements.
In recent years, many have ventured into this unexplored territory, hoping to explore the area for creative and commercial prospects, and it has already witnessed some spectacular moments. So, how a metaverse development company merges the idea of ownership with intangible assets is something to look forward to.
What is Metaverse Real Estate?
The term metaverse was devised in the early 90s. Since then, it has changed from just a science fiction concept to a present-day reality. Basically, the metaverse is a large virtual environment and a collection of interconnected digital spaces where users can connect, socialize, and even do business.
Similar to our physical world, the real estate metaverse is characterized by plots or pieces of virtual land. You can also easily buy, sell, create, and lease properties in the metaverse. However, rather than brick-and-mortar architecture, they are signified by digital constructions, from simple 3D spaces to complex, immersive ecosystems. Moreover, these digital properties can host concerts, virtual events, art galleries, eCommerce stores, and even virtual homes and offices.
How Real Estate in Metaverse is Different From Conventional Real Estate
Compared to physical plots, metaverse properties are restricted by geographic locations. They exist in a virtual dimension, providing limitless opportunities for spatial creativity. Whereas laws and the environment constrain traditional real estate, digital places can be altered at the owner’s discretion.
Real estate transactions in the metaverse are frequently supported by blockchain technology and offer greater transparency, security, and convenience. On the other hand, conventional real estate has its roots in the physical world and is consequently constrained.
Virtual vs. Physical Real Estate Properties
The boundaries between virtual and physical realities are becoming blurry due to rapid technological innovation, creating new social realities. However, these two worlds differ significantly in terms of functionalities. Let’s see a comparison.
|Intangible, digital spaces
|Tangible, real-world locations
|Restricted by software capabilities and user imagination
|Limited by environmental, zoning, and legal restraints
|Simple to change and modify
|Subject to statutory and physical limitations
|Virtual foot traffic and proximity to digital events
|Location, facilities in the neighborhood, and infrastructure
|Updates for software, digital security
|Physical maintenance, remodeling, and repairs
Real Estate in the Metaverse: Market Overview
The metaverse in the real estate industry is booming right now. According to reports, the size of the real estate metaverse market was approx $1.14 billion in 2022. It is predicted to grow fifteen times by 2030 to a whopping 15.69 billion.
What then constitutes metaverse real estate’s fundamental components? We collected the primary elements that made this industry what it is.
1. Diverse platforms
The market has many metaverse platforms, each with its own defined architecture. Some of the major platforms are Cryptovoxels, The Sandbox, and Decentraland. You can take assistance from reliable metaverse store development services to build virtual real estate marketplaces for your business.
2. Rising investment
The market’s visibility has been dramatically increased by high-profile metaverse property investments made by people and businesses, which has sparked interest from a wider audience.
3. Evolving use cases
The idea of a virtual reality space in real estate has broadened beyond buying and selling virtual land. It has encapsulated virtual workplaces, digital art exhibitions, business endeavors, and entertainment centers.
Navigating Opportunities in the Metaverse For Real Estate Industry
Real estate in the metaverse is far more flexible. A piece of land can be bought by users and developed into any kind of facility, like an event venue, gallery, school, or store. In this market, there is a considerable possibility for real estate businesses to generate massive ROIs.
Management of Metaverse Real Estate
Property management presents a compelling opportunity for digital metaverse real estate development services providers. Apart from providing users with the ability to own land within the metaverse, significant services include:
1. Property management for customers
2. Rental Catalog
3. Metaverse real estate property development
4. Contact person for any client-related issues and questions
Property Development in the Metaverse
You can provide full-stack property development services in the metaverse. You can collaborate with a metaverse real estate development company to create a profitable business plan. The time you save can be put to better use on other crucial projects like:
1. Design your construction
2. Making a building plan
3. Enhancing your plan and designs
4. Crafting a map of development
NFT Integration in Real Estate For Metaverse
Buyers of real estate assets can generate passive income by porting their holdings into non-fungible tokens. Companies can offer to tokenize an area, a particular land, a building, or an entire city into one or more NFTs. These days, NFTs stand for a variety of assets, including items, talents, avatars, and other assets. A prominent web3 development company can help integrate NFTs and important APIs in your real estate metaverse platform.
How to Build Real Estate in the Metaverse: A Step-by-Step Process
Developing metaverse real estate at the component level involves creating content, constructing the necessary infrastructure, and, in the end, establishing the operational logic through protocols.
1. Platform Selection
Real estate development in the metaverse requires a diverse set of skills. The first step is selecting a platform to build your real estate metaverse. All the major blockchain platforms, including Ethereum, Polygon, Algorand, Solana, etc., presently offer the framework needed to create a virtual world that is democratic and community-driven.
To develop real estate in the Metaverse from scratch and integrating real estate properties is the central aspect of crafting a broader and more sophisticated platform. A leading real estate metaverse development company like ours can always assist you by expediting the process.
2. Creating Metaverse Smart Contracts
A metaverse smart contract is a set of unalterable “rules” that cause particular actions to be taken when specific conditions are met. The ability to initiate a transaction between a buyer and a seller upon both parties clicking “Agree” is one of the features of a smart contract.
Leasing agreements between two parties can also be specified and carried out via smart contracts. It includes ending the rental agreement if the renter violates any particular regulations or conduct standards. At this juncture, you need the expertise of a blockchain development company to create the contract accordingly.
3. Designing Metaspace
Constructing the metaspace is the next step after choosing the metaverse digital real estate platform. Metaspaces include apps, virtual meeting rooms, virtual conference rooms, and even virtual home theaters. Metaspace is a virtual environment accessible to those donning VR headsets.
A metaspace can have dimensions as small as a room or as big as an entire city. Virtual reality application development and 3D designing can be done quickly and simply by a leading VR app development company.
4. Interactive Layer Development
We create the application logic to enable assets and characters to interact with the metaverse real estate design. This layer controls user controls, communication protocols, accessibility, and navigation.
At this layer, the integration with external apps must be specified by developers. For example, video calling requires gadgets like Zoom, smart glasses, haptic gloves, virtual reality goggles, headsets, and sensors. A metaverse consulting agency for real estate projects can help you build the bridge between the metaverse and the real world.
5. Establishing Interoperability
Interoperability expands the metaverse’s reach and boosts participation. For example— An individual utilizing one metaverse may wish to buy tickets and participate in an event hosted within a real estate in another.
To do the same, interoperability between the underlying blockchain systems is essential. Encouraging cross-environment transactions is imperative to building a virtual world that works as intended. Achieving this feat is daunting; therefore, consulting with the metaverse software solution firm is crucial.
6. Testing and Quality Assurance
We ensure that users can navigate the space intuitively, the graphics load seamlessly, and the interactions, such as opening doors or switching on lights, work properly. Real estate metaverse development services conduct rigorous UX testing before making the virtual environment available to the public or prospective customers.
Any errors, defects, or problems found during testing are fixed. Since metaverse real estate platform development is complex, thorough debugging is essential to guarantee that users can enjoy a seamless and enjoyable experience.
7. Launch and Marketing
The created space may first be made available to a few people, akin to a soft launch or beta testing stage. It aids in gathering more input and making any last-minute adjustments.
The virtual property is made available to the general public after completion. A software development company may combine conventional digital marketing strategies with platform-specific promotions and partnerships with metaverse influencers or businesses to draw attention.
8. Post-Launch Maintenance
Our developers keep an eye on user interactions and feedback even after launch. It aids in locating potential improvement areas and any new issues. Regular changes are crucial to keeping the space relevant and exciting.
Depending on user demand and input, a mobile app development company may entail adding new interactive components, improving visuals, or adding more functions to the property.
Buying Property in Metaverse: Pricing Dynamics Explained
In the metaverse, real estate is becoming increasingly expensive. Metaverse lands cost between 0.37 to 1.09 ETH (around $666.3 to $1.962.8) with varying prices across all projects. Think about the case of Decentraland. The platform held its first auction in December 2017, providing land pieces for $20 each. This product’s cost soared to $6,000 by 2021 and continued until 2022, when it hit $15,000.
The pricing of a virtual land piece might differ greatly depending on its location, size, and platform. Right now, you could spend up to $6,362 for a property in Somnium Space, while a basic property on Decentraland would cost you $2.4 million.
Processing fees, which may account for as much as 5% of the land cost and gas fees for Ethereum-based businesses, are likely to be paid in addition to the parcel price. Some metaverse marketplaces also require you to transact with their cryptocurrency.
How Much Does it Cost To Build Metaverse Real Estate?
The real estate metaverse cost differs significantly and depends on a wide range of elements similar to the dynamics of the digital world and conventional real estate concepts. Since the market is constantly changing, it isn’t easy to provide exact figures, but we can determine the price elements that affect the cost of metaverse real estate.
1. Platform Popularity
Similar to how the value of real estate varies between prime cities and suburban areas, the popularity of a platform impacts the cost of real estate in the metaverse.
2. Location Significance
Higher costs are typically associated with land near prominent attractions, key hubs, or well-used routes. Virtual plots providing better ‘views’ or located near iconic landmarks can additionally cost more.
3. Size and Functionality
Plots that are larger or have unique features (such as more interactivity) may cost more since they can offer better user experiences and return on investment.
4. Market Dynamics
Prices have noticeably increased as the metaverse concept becomes more popular. However, expenses might fluctuate due to the volatility of the digital space.
5. Historical Sales Data
High-profile sales can influence land values. Plots with a high volume of past sales may drive up the value of nearby land since purchasers frequently use these as benchmarks to estimate possible returns.
Recent stats suggest that the typical price for a smaller plot in a less-traveled area can be a few hundred dollars. In contrast, premium spots in well-known metaverses require hundreds of thousands of dollars or even more.
SparxIT’s Role in Real Estate Metaverse Projects Development
SparxIT has a proficient group of developers with global expertise in delivering digital solutions to businesses in many industries. We provide future-ready metaverse app development services while maintaining the application’s usability, all while utilizing emerging technologies.
With SparxIT’s metaverse development services, you can build a real estate business in the metaverse that is tailored to your goals and requirements. The metaverse real estate app solutions will be centered on unique needs, and the result will undoubtedly be profitable.
We’ll collaborate to offer you the best metaverse real estate app so you can begin doing transactions immediately. So, contact us today!
Virtual Real Estate Investing: Concluding Thoughts
Metaverse real estate is a wise investment or not is the critical question. It primarily relies on how much risk you can take. As virtual reality becomes more widely used, there’s a fair chance that if you purchase a metaverse property now and hold onto it—say, five to ten years, its value will rise significantly.
However, because it’s uncertain how the metaverse is organized, there are a lot of risks. It is also unclear how property will operate and be governed when the metaverse becomes more sophisticated and widely used.
Building a metaverse app for users is an alluring option if you have the money to take a chance on high-risk ventures that could pay off handsomely. However, real-world property is still the best option if you’re searching for a safe investment.
FAQs on Metaverse Real Estate Marketplaces
Q:1 What are the benefits of metaverse for real estate?
A: The advantages of the metaverse are vast and include immersive property displaying virtual property exploration and global collaboration. Improved property promotion, increased visibility, and virtual transaction ease streamline the real estate process for buyers, sellers, and brokers.
Q:2 What are the disadvantages of a metaverse in real estate industry?
A: The metaverse in real estate has drawbacks such as inequalities in digital access, security risks, and even privacy concerns. The tactile quality of real venues may be absent from virtual experiences, and an excessive dependence on digital platforms may result in false information.
Q:3 Can you lease real estate property in metaverse world?
A: Yes, you can. Many developers experimenting with the metaverse platform prefer to lease properties rather than make a long-term investment in buying. You can expect leases of different durations—a week to even a year. You will have a lease agreement that specifies what property you can buy for and in what circumstances it should be returned.
Q:4 Can I sell my metaverse property?
A: You can sell it on secondary marketplace websites or “in-game” markets within the specific metaverse. You can hold a timed auction or list your property for a fixed price.