Metaverse is not a new phrase, according to the Economic Times. This topic was first addressed in American writer Neal Stephenson’s 1992 fiction novel. The metaverse is a virtual realm in which individuals communicate, meet, work, entertain themselves, and so on, using digital representations. Virtual universes are growing increasingly popular as they reach millions of new users, thanks to the support of virtual reality (VR) and augmented reality (AR) technology gadgets. In which the virtual real estate market in Metaverse is the most booming market, investors have bought virtual land with values up to millions of dollars. Virtual land buyers can completely design and build anything they want on their land and can earn income right there. Depending on the location of the property from which you might be a landlord on Metaverse, you can easily purchase your own lots in metaverse platforms and rent them out to individuals or companies. So, what are the advantages of becoming a Metaverse landlord?
1. Profit from the rise in the price of virtual land
While platforms like The Sandbox haven’t been around long enough to have a strong understanding of what appreciation looks like, Decentraland has. Data on Decentraland sales from NonFungible.com dates back to 2017, when the native Decentraland currency, MANA (MANA -8.52 percent), was worth cents against today’s currencies dollars.
A lot called LAND
#115792089237316195423570985008687907819241747973546717693120123264736308494287, for example, sold for the $111.52 equivalent in MANA on Dec. 17, 2017. That same lot on Dec. 16, 2021, brought $13,703.49. Imagine if you’d bought that lot years ago and rented it out! That’s a huge gain on your return.
2. Access to commercial tenants
You can create virtual shopping malls, workplaces, and event spaces instead of just renting out virtual houses and apartments. There are already large corporations spending heavily in the metaverse, which you may rent out to these corporations and profit from.
3. In comparison to reality, low input costs
Even if you hired a virtual structural designer to build a metaverse property, the cost is negligible compared to the actual real estate. There are no property checks, no restrictions on what you can build, and no restrictions on who can live for how long and where. It can be expensive, but there are no materials needed for the actual construction, no waste, and no supply chain issues to worry about. It’s all made of pixels and electrons.
With the help of the DAO, you can buy and rent metaverse land. To mirror the principle of the decentralized economy, DAOs are frequently self-governing and lack a hierarchy. Using a DAO to buy and rent land can make it easier to get into the digital real estate market, as it requires less upfront capital and allows for a more passive investment experience.
The metaverse’s digital real estate has truly potential, but its success is contingent on future demand. You should make your purchasing and leasing decisions based on your risk management strategy for alternative investments.