In recent years, the real estate market has experienced significant growth, to the point where physical properties are not enough for some investors in the sector. That's why the real estate market has found in metaverse investments an opportunity to expand. The vast possibilities of these worlds in terms of available space for building have led to a boom in virtual property sales, to the point that in 2021 these transactions moved 475 million euros. Similarly, a 31% growth is projected for 2028.
That's why in this article you will find everything you need to know to make investments in the metaverse: how it works, benefits, risks, examples, and brands to do so, as well as the latest trends available to help you make the best decision. If you are looking for where to invest in 2023, we recommend you keep reading.
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We know that, before discussing potential investments in the metaverse, we must first understand what the metaverse itself is.
The term metaverse refers to a concept integrating online virtual worlds, where users can interact and participate in virtual experiences. It is a digital space in which it combines augmented reality (AR) technology with virtual reality (VR) and video to create a virtual universe where users can move and interact with each other.
The concept itself is quite old. It was popularized starting in 1992 through Neal Stephenson's novel "Snow Crash", but the metaverse as a reality is much more recent and, in fact, a universally accessible metaverse does not yet exist. But there are platforms seeking to create a real metaverse, and the one closest to achieving it is Meta with its Horizon Worlds.
Thanks to these platforms that are already seeking to build this universe, it is now possible to make investments in the metaverse. Below, we will introduce you to the brands that already offer this opportunity.
Some of the most popular metaverses (or metaverse-like experiences) available today are:
Most of these platforms offer their users metaverse investments. In fact, the largest metaverse investments, in terms of capital contributed, have occurred in Decentraland with land purchases in its main city, Genesis City.
However, the company with the most promising proposal regarding metaverse investments is Meta's Horizon Worlds. This virtual reality platform allows users to create, experience, and share immersive virtual worlds through the use of a VR headset. It offers intuitive creation tools, security and privacy features, and many metaverse investment opportunities.
Metaverse investments function similarly to investments in other markets, but with some peculiarities due to the virtual nature of the purchasable assets.
To begin with, properties acquired in the metaverse are NFTs. An NFT is a token non-fungible, a unique digital asset. Most often, these are digital art elements (images, audiovisual files, 3D creations), but they can also be other things, such as land, virtual houses, avatars... To ensure these NFTs have value, their supply is always limited. For example, Decentraland's real estate market only has 90,000 plots of 240 square meters each.
These NFTs are available to buyers worldwide through companies specializing in metaverse investments. The products offered by these companies can be purchased using cryptocurrencies.
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Among the available metaverse investments, several real estate investment possibilities are offered, as virtual worlds can replicate and enhance traditional real estate investment models. Some of the possibilities include:
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To make investments in the metaverse, including in the real estate market, you need to have a virtual wallet and create an account and avatar in the virtual world where you want to invest. Then, simply contact one of the real estate agencies operating within it and explore the available offerings. The company will allow you a virtual visit to the property, after which all that remains is to formalize the transaction. The transaction is subject to the taxation of the country where it takes place.
Investments in the metaverse are mobilizing several companies that have ventured into buying land.
For example, Metaverse Group reportedly bought a plot of land in Decentraland for nearly 2.5 million dollars. Another real estate company, Republic Realm, bought another plot on the same platform for 900,000 dollars. And even individuals are participating in metaverse investments: a plot of land in Snoopverse, the metaverse Snoop Doggy Dog created in Sandbox, sold for over 450,000 dollars.
In Spain, there is a real estate platform, Metrovacesa, that also offers virtual land buying and selling operations. However, precisely because of the global dimension of metaverse investments, there's no need to limit oneself to Spanish platforms. Other real estate companies with properties for sale in various metaverses include Metaverse Property and Metahood.
Although existing metaverses and the virtual real estate market they represent are still under development, certain advantages of this type of investment in the metaverse are already becoming apparent:
Metaverses are in full development and have not yet reached their full potential., meaning there's plenty of room for growth. Currently, virtual real estate is more accessible and cheaper than traditional real estate, which means more people can invest in it. Furthermore, since metaverses are accessible from anywhere with an internet connection, there are no geographical restrictions on investing in them.
Virtual real estate can be much more flexible than traditional real estate, as investors can buy and sell virtual properties quickly and without having to deal with issues like property repair and maintenance.
Investing in virtual real estate can help to diversify an investment portfolio and reduce associated risk.
Metaverses are driving technological innovation and can offer unique opportunities for real estate investments.
Therefore, metaverse investments offer a wide range of possibilities for investors interested in the real estate market.
On the other hand, it's important to remember that metaverse investments, like any investment, carry risks. In addition to these, there are a series of particular challenges that only affect metaverse investments:
According to Janine Yorio, CEO of the real estate company Republic Realm, the organization sold 100 virtual private islands for $15,000 each, and “today they sell for around $300,000.” This means that investments in the metaverse can be very profitable. However, this profitability can also vary greatly depending on the type of metaverse investments we are discussing.
When it comes to real estate assets, profitability depends on the type of asset, its location, and the level of demand, exactly as in the real world. But, additionally, in the metaverse there is an opportunity that almost never occurs in reality: to acquire at quite affordable prices virtual plots or homes near those of celebrities. The case of the plot in Snoop Dogg's private metaverse gives an idea of how to do business by capitalizing on the fan phenomenon.
Virtual reality is still very new, and it's difficult to make precise predictions about the growth of metaverse investments. However, some are already talking about creating an entire society equivalent to that of the real world, which would involve the construction of all types of properties, from homes to cemeteries. The Seoul Metaverse project, for this very 2023, aims to recreate the city of Seoul and make it fully virtually visitable, for example.
Therefore, it is likely that interest and investments in the metaverse will continue to grow in the coming years. Several technology and media companies are investing in the development of metaverse experiences, and many people are interested in exploring this new virtual space and using it to interact with other users and engage in activities. The metaverse is expected to have a significant impact on the global economy, with investment opportunities in areas such as content creation, virtual and augmented reality technology, network infrastructure, and advertising.
Investments in the metaverse, therefore, have significant potential, and many companies, as well as individuals, seem willing to take advantage of this booming trend: more exclusively digital real estate companies will continue to emerge, and as the possibilities of this virtual world improve, the price of these plots will rise accordingly.
Furthermore, several companies are leveraging the advantages of metaverse investments to sell real properties. Metrovacesa, in alliance with Datacasas Proptech, offers investments in the Málaga Towers project (located in Málaga) through a replica of it in Decentraland.
And, additionally, it's important to remember that metaverse investments can be complemented with investments in tokenized physical real estate. In other words, there is also the possibility of investing in the real estate market through virtual transactions. In Spain, Domoblock offers a wide portfolio of blockchain-based real estate investments through real estate crowdfunding, allowing investments from as little as 200 euros. This type of investment, with the tokenization of properties allows for investment diversification with lower risk and an assured percentage of profits.
In conclusion, the advent of the metaverse has given rise to a new and exciting form of investment: the purchase of virtual properties. As technology and virtual reality continue to advance, more people are venturing into this digital world to acquire land and real estate in the metaverse.
While the concept of buying virtual properties may seem strange to some, the exponential growth and economic potential offered by the metaverse cannot be ignored. Virtual properties can hold intrinsic value in terms of location, design, and unique features, attracting investors and enthusiasts alike.
However, it is essential to address the challenges and risks associated with buying properties in the metaverse. Regulation, security, and the protection of property rights are crucial aspects that must be considered. Furthermore, it is important to thoroughly research online platforms and marketplaces before making any transactions.
As society continues to explore and adopt the metaverse, new opportunities and challenges are likely to emerge. Buying properties in this digital environment is changing how we conceive ownership and investment, and will require an open mind and adaptability to fully leverage its benefits.
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Funded
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Target
593.050,00 €
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