What will the future of Real Estate look like in this digital landscape? The record sale of virtual land was for a plot of three square miles in The Sandbox, a virtual metaverse where players can build, own and monetize their virtual experiences.
Each plot of land acts as its own verified NFT, meaning it's completely unique and can't be duplicated. It give you rights to build whatever you want on your land or give access or denial to anyone on your land. All of which is traded with crypto currency. As a derivative of crypto, the market is still very risky and speculative. The value itself also correlates highly with the underlying value of crypto. But still, why is it so expensive?
- Developers encourage active participation in acquired land. Companies like Atari, Playboy and a real estate investment firm, Republic Realms, have used their virtual property to host virtual art shows and create virtual arcades and malls, encouraging user interaction.
- There's only a finite amount of space and an increasing population of users. Much like the real world, the value is based off of supply and demand. More users = less available land.
- Advertising opportunities are widely available. A company or individual can rent out their land to monetize the use of banners, billboards, video displays and even commercials.
- Leasing and renting. Leasing agencies like Rentabyl have already appeared in the virtual real estate space. Businesses and individuals who need a space to operate but do not have the funds to purchase land, can utilize the services of virtual real estate companies.
So what will your virtual dream house look like?