What Should You Expect From a ‘Virtual House’

virtual reality…. virtual house

Introduction

Investors may not be rushing headlong into buying physical hotels and offices right now, but in the virtual reality world, property deals are surging and attracting vast sums of real-life dollars.

Virtual Socialization Will Be Inevitable

Virtual environments and ecosystems are not new. Both ‘Eve Online’ and ‘Second Life’ virtual worlds, which were designed for adults, successfully launched back in 2003, and at their peak, attracted millions of users. Subscribers/ members built intricate economies inside both simulation games, and they rose to popularity when the real world was still very much grounded within real-life synergy. They have since declined in demand as the new crypto-based/ NFT newbies have been rapidly growing. Those two games back in 2003 were just a bit before their time.

In recent times, human intercommunication and socialization have shifted overwhelmingly virtual; wherever possible, people have moved their social and business connections and relationships to their smartphone or laptop. Now is the appropriate time to virtually socialize and interact via our devices rather than in person, as the pandemic has mostly driven us all online. These new habits and customs just might become permanent cultural shifts, changing what we consider normal behavior.

Is Digital Real Estate Investing Serious?

Unquestionably it is, and here are a few snapshot pieces of information that will prove exactly how serious it is:

  1. Decentraland, which is a metaverse, had a recent Initial Coin Offering (or ICO) and sold more than USD 24 million of MANA (which is the Decentraland currency — allowing users to buy and sell virtual land within this metaverse) in less than 60 seconds.
  2. Genesis City is a plot of virtual land designed and created by Decentraland. It is approximately the size of Washington, DC, and investors can buy portions of this land for outrageous amounts of Money. According to Bloomberg, even a simple 1,100 square foot plot of land can sell for as much as USD 200,000.
  3. Virtual real estate prices are just growing, yet that has not stopped or prevented investors from spending mind-blowing amounts of Money on them. Back in January, a plot of LAND in Decentraland went for around USD 2,500. Only months later, the price surged over USD 180,000 for the same size of virtual property.

Decentraland has formidable and exciting plans to expand and define all aspects of Genesis City and convert it into a virtual city center. The community of virtual landowners have already addressed mixed zoning and entertainment regions like ‘Vegas City’, — which is a designated area devoted purely to all forms of virtual gambling.

Authorized users will have the ability to go to a casino and gamble, watch a live music show or cabaret, attend a DIY workshop, shop with virtual friends, and even start an online business in the metaverse — all via a Decentraland web browser or Virtual Reality headset.

Virtual Real Estate: New Players and New Rules

Nowadays, most present-day excitement concerning virtual real estate and NFT speculation can be traced back to the confidence surrounding investing within ‘Second Life.’ One player back then in ‘Second Life’ world became famous for becoming the first player to achieve USD 1 million from an initial investment of just USD 10 — all earned from business dealings conducted solely inside the virtual world.

The key to virtual land prosperity is to learn the new investment rules. The old rules for physical investments are not relevant in the virtual world. The “location, location, location” mantra implies that vicinity and discernibility will govern value, but in the virtual world, players can instantaneously move to new locations (using game-map coordinates), so visibility matter less.

What signifies the virtual world is enticing humanity and drawing players within the metaverse to interact, invest, and return continuously. Within the virtual world, imagination, ingenuity, and excitement from interaction far outweigh budget and location.

Just How do you Buy Digital Real Estate

Exactly what is digital real estate, and how can you purchase it? Well, it is a real opportunity, it is a blank canvass to create whatever virtual home that you desire, and importantly, it is a real investment.

In the real estate real-world transaction, Money is exchanged for real property, and the transaction will involve financial institutions like a bank, conveyancing lawyers, and title companies. Similarly, virtual real estate is exchanged, normally for virtual currency — and usually in the form of Non-Fungible Tokens (NFTs).

NFTs are distinct and have a limited or finite volume. NFT transactions are facilitated by blockchain technology, which is a digital ledger that is copied and distributed across a network of authorized nodes. Post-purchase, instead of house keys, you receive an encrypted password — and the freedom to develop your virtual land with the only constraint being your imagination.

The Value of Virtual Real Estate

The value of online real estate will rise as more people purchase digital art and other collectibles — and require a position to showcase them. Artists and designers are transforming to the virtual world to advertise and sell their digital artistic creations, as consumers spend significantly more time within the metaverse.

For a genuine virtual real estate investor, this means there will be value in owning virtual real estate within a well-trafficked digital space. Republic Realm, which has significantly invested its own funds to purchase over 20 parcels across a few metaverses, is currently in business discussions with real-life hospitality brands seeking to co-develop resorts on those virtual sites.

Purchasing virtual land today, within virtual worlds or metaverses, could feel like how those investors did — buying land in Long Island and Manhattan, or in Paris or London in the 1700s. There is extensive growth ahead, and time is right now to get a foot in on the ground floor.

Companies and Individuals can Money Investing in Digital Real Estate in the metaverse

There are no guarantees with investing, however digital real estate investing has proven to be a possible source of wealth generation for investors. There are currently several metaverses, each with its own cryptocurrency. But, essentially, they all operate in the same manner — with the distinction being a slightly different digital implementation.

Investors within the virtual economy learn quickly that it is an exciting time to engage digitally. The likelihood of fleeing to a new world to reinvent oneself will always be an allure — regardless of who we are and what we have become in the real world. Coupled with vivid and unusual graphics, entertainment, AI, and robotic simulations generating all facets of virtual life, it is natural to understand why metaverse organizations such as Decentraland are becoming popular.

Early adopters in virtual real estate — regardless of whether they are an organization or an individual — have the ability to enter the market where virtual home prices are so more affordable when compared to real world home and land markets. Like any early mover who has identified a fast-growing investment opportunity in the real world (think of cities such as Las Vegas), those investment pioneers who invest early — and keep hold of those investments for the long term will prevail.

Image supplied by Efe Kurnaz — Unsplash

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Paul Chambiras

Paul Chambiras

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I am a freelance writer on all things Business, DIY, Sport, Technology, IT and Management.