Years ago, purchasing virtual luxury homes might have been relegated to video games or sci-fi movies, but today it’s an absolute reality and an ever-growing facet of the real estate industry.
In February 2022, an unnamed buyer purchased a lot in Snoopverse (Snoop Dogg’s branded metaverse) for a staggering $450,000. And with Brandessence Market Research finding a 31% annual compound growth rate for the metaverse real estate market in the next six years, purchasing virtual property may be just as solid an investment as owning a real home.
So, how do you purchase a luxury home in the metaverse? First, you must have the specific cryptocurrency in your virtual wallet that’s accepted by the particular metaverse you aim to buy in. Similar to a physical real estate transaction, buyers can purchase virtual property at a fixed price, or they can participate in an auction. The virtual plots are drawn on virtual maps, and once a purchase is complete, owners can build on the lots to increase their property value. Prospective metaverse buyers can also purchase pre-existing properties.
Right now, there are about 12 platforms where buyers can pick up virtual properties, with a total of 270,000 units available for purchase. The four main metaverse platforms for real estate are Sandbox, Crytovoxels, Somnium, and Decentraland, though Sandbox controls about 62% of the virtual real estate market at present.
Just like physical property, digital property is a wealth-builder. More and more luxury buyers want to invest in, experience, and “live in” the increasingly popular digital realm called the metaverse. It’s forecasted that one day these virtual investments will reap some very real rewards.