money·2 min read

ICYWW, This Is How Metaverse Real Estate Works

accessibility, illustration of a metaverse neighborhood
Illustration: Meredith Miotke
Aug 24, 2022

The real-life housing market is *ahem* complicated at the moment. Even renters are running into bidding wars. But experts say the metaverse real estate market is booming, with no signs of slowing down soon. Investing in it can come with a few risks, though. Here’s what you need to know before you buy.

Back up. What is metaverse real estate?

Ever thought of living in an NFT community? Here’s your chance. Metaverse real estate is property made of pixels you can buy. The process is pretty similar to buying real-world property.

And there are multiple metaverses to shop. Think: The Sandbox or Decentraland. Even major corporations like Microsoft and Google are claiming their spots in the metaverse.

Oh, and depending on where your property is located, it could be worth millions. In real dollars. Think: Hot spots like the Decentraland fashion district.

Sold. How do I buy metaverse land?

First, you’ll need a digital wallet and cryptocurrency to make your purchase. (Psst…use our decision tree to see if you’re ready to invest in crypto.)

The next steps depend on which platform you use. But, generally, you can log into a metaverse platform and hover over pixels to view owner details, along with a link where you can make an offer. Once you confirm your purchase, you’ll get a unique piece of code on a blockchain as proof of ownership. Voila. The property is yours.

How does metaverse real estate work?

A lot like IRL. It’s all about location, location, location. Also just like in the real world, prime metaverse property attracts big spenders. So it might be a good idea to set a new savings goal before you get attached to the concept of buying pixels on Sandbox Hill Road.

Wait. How much does land in the metaverse cost?

Pricing, like in the real real estate market, can vary based on the metaverse platform. While prices are up in the real world (Hi, inflation), WeMeta says metaverse property prices have dropped 81 percent since last year. But it’s a volatile market, which means prices could go up. Fast. Hint: A piece of land next to Snoop Dogg sold for $450,000 last December.

Is metaverse real estate risky?

Very, experts say. Because crypto is a major player, and that makes the future value super speculative. A good rule of thumb: Don’t invest what you can’t afford to lose.

theSkimm

Metaverse real estate is booming. And investors are saying metaverse real estate is the future. But experts say that’s what makes it risky: We don’t know what the value will be in the long run. If you’re thinking of investing, experts recommend starting small. And remember to factor location into your decision.

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