The real estate industry has grown beyond its physical borders. It is ready to monetise over non-existent yet real properties, which are not even available to the most exclusive members of society. Virtual real estate refers to land/ property in a virtual world that can only be seen via the Metaverse headsets, transforming the real estate industry and commercial investments forever. The metaverse has no limits, so owners can play with their property according to their imagination and use blockchain technology to secure their land ownership deals. Investing in virtual reality and, essentially, metaverse real estate can change your life forever and become one of the most profitable financial decisions ever.
Exploring Virtual Real Estate: Dive Into The Metaverse
The metaverse is a virtual space that merges physical reality with a non-existing object/ timeline. In layman’s terms, the metaverse is a digital gadget where people can touch and use non-existent objects by only wearing a gadget over their sensory organs. Owing to the advancements in virtual reality, Google, and augmented reality experience, the metaverse was the only next thing that made sense. In this universe, users can play, learn, or shop from their beds themselves and even make real estate investments. This next iteration of the internet is a shared yet exclusive space where people can move freely, make new friends or monetary assets, and enjoy virtual adventures without any location, time or budget limitation.
Metaverse is also going to alter the real estate industry with digital constructions, complex 3D spaces made easy, virtual property tours, eCommerce stores for property-related transactions, and many more unbelievable achievements that will perhaps eliminate any chance for fraudulent schemes and false claims and transform architecture as we know it today. Contrary to conventional real estate, the metaverse is not restricted by geographic locations or government regulations, and it is very simple to alter its physical properties. Physical maintenance for metaverse properties requires just a software update compared to the costs of remodelling an existing physical property. Many apps like Vera, Real AR, MagicPlan, and AirMeasure deal with “clients and builders” of the online world to make land deals and give ownership to the metaverse’s real estate investors.
Unfound Potential of Virtual Real Estate Investments
According to statistics, virtual real estate is expected to boom by 31.2% from 2022 to 2028. It has been a couple of years since people started to trade properties online, but investors are still expecting huge returns for these “properties.” This might be a case of “early buyers wanting to buy land at cheap rates before it explodes” scenario, but the demand for these lands has indeed grown multifold, and here are some of the reasons why:
Trading plots as NFTs
Real estate in virtual reality can be used for any reason, from playing games to building schools. In some cases, investors treat real estate as NFTS, trading their respective land as a digital asset. This makes metaverse real estate easier to sell than physical building/ land.
Accessibility
The accessibility of a real estate property in the virtual world can be controlled by the owner, and not everyone can see/ visit the property/ land until the owner agrees upon it. Also, purchasing a property in virtual reality is extremely easy, and anyone can buy a home without requiring much help from brokers.
Profitable Investments
Virtual property can be rented just like any physical property and sold for a profit if it is in an excellent location or near a major landmark in the AI world. It is very easy to trade the land/ property without legal work, and third parties (with the owner’s authority) can even hold auctions to sell much-demanded land.
Architectural Innovation
Virtual lands and properties are not required to comply with zoning laws or ensure architectural feasibility. This makes virtual properties the best investment for creative architects who love to experiment and design unimaginable buildings that might even affect the real world’s architecture.
Owning a Piece of the Future: Investing in Canada’s Virtual Real Estate
In 2021, almost $5.5 million was invested in virtual real estate in Canada, and private equity funding for the industry reached $13 billion. This trend has only surged in the past 2 years, given the purchase of Snoopverse plot in AI for US$450,000. Individuals and companies have started to showcase virtual lands as future investments. Despite being extremely volatile, more and more Canadians are acquiring AI properties and adding them to their real estate portfolio.
What Can You Expect From Canadian Virtual Real Estate Investments?
According to a report, the total transaction value of virtual real estate properties was $500 million in 2023, implying higher investments and higher demand for AI properties by everyone. People who invested in such properties right at the beginning of the online trend have claimed to make over 1000% returns within a couple of years. With newer innovations in AI and a rapidly transforming job market, perhaps people will soon buy real estate land for long-term investments and short-term profitable returns, such as a rental home.
How To Invest in Virtual Real Estate?
Anyone can easily invest in Canadian virtual real estate on their own or get the help of third-party companies, which might take a cut of money from the total sales amount. Here are a couple of ways in which you can invest in Metaverse real estate:
1. Purchasing via Online Platforms/ Portals
Citizens can use portals like OpenSea and Rarible, which offer a huge range of digital properties, commercial and residential, that might be in demand and serve as excellent, profitable investments. These websites are generally very safe and require payment via a digital wallet, such as MetaMask. You can verify your ownership with an NFT token provided by the platform.
2. Owning A Land In Partnership or Managing It
Offering a hands-off approach, people can also purchase these lands in a large partnership to save money from unsafe investments. They can also choose to manage the product instead of buying the virtual land and property, earning a cut of the total investment returns. This helps in the overall division of labour and also ensures a safe return in the form of management fees.
3. Expanding Virtual Property to Create Rental Units/ Hosting Live Gigs
Investors can use their virtual property to earn rental income from businesses, host online gaming events, and sell virtual goods. They can also expand their property in any shape or form, which means a residential unit can easily be altered into a commercial property. Owners can also collaborate with various brands to host virtual events on the premises, which can be promoted on social media.
How to Invest in Virtual Real Estate?
Here is a step-by-step guide for investing your digital money in the virtual real estate world:
1. Thoroughly Educate Yourself About the Virtual Real Estate World
Investors should familiarise themselves with the various locations in the metaverse that are highly profitable and in demand due to their proximity to nearby landmarks. Introduce yourself to the metaverse and its new rules before throwing your money at a bad plot of land. Investors should research the various property types available in the meta-market and learn how to safeguard their property from others after ensuring the security of their portfolio.
2. Pick The Perfect Metaverse Real Estate Platform For You
Investors should familiarise themselves with the various metaverse real estate tools available in the market, such as Decentraland, The Sandbox, and Cryptovoxels. Each platform works on different economic models and studies market trends in different ways, which helps them come up with profitable future projections for their clients. They also specialise in different types of virtual property, so investors should choose their respective platforms carefully.
3. Create a Compatible Digital Wallet
Investors can easily create a compatible digital wallet using apps like MANA and SAND, which support multiple cryptocurrencies and can be integrated into various metaverse platforms. Set up these wallets with strong passwords and enable two-factor authentication to protect your assets. Some of the important websites and their respective currencies are:
|
Platform |
Currency |
|
Decentraland |
MANA |
|
The Sandbox |
SAND |
|
Cryptovoxels |
ETH |
|
Somnium Space |
ETH |
|
Axie Infinity |
ETH |
|
Upland |
UPX |
4. Buy a Virtual Property Post Assessment
Once you have opened a digital wallet and secured some funds, you can start exploring all the available virtual properties on different platforms. You must consider key factors like the size of the land, location within the digital world, currency rate, developmental potential and proximity to major landmarks and pathways. You must always check for the platform’s overall user engagement and growth trends, as they will impact the reselling value of the property. Keep in mind how the property can earn you money by hosting events or becoming a virtual storefront for some brands. Ultimately, buying land in the Metaverse real estate is much easier than buying real estate, as you won’t need government documents but an NFT token card.
5. Make Your Land Work For You
After acquiring your virtual real estate, you can easily start developing your investment into profitable properties that can act as a virtual storefront, metaverse social hub, rental home, art gallery, or entertainment venue. You can easily interact with other developers and designers to invest in your land so that you can get profitable returns and offer them some share of the metaverse profits. You can charge an entry fee for each visitor and create a unique interactive experience that drives traffic to your property. Applications like Decentraland, The Sandbox, and Cryptovoxels can easily help you monetise off your virtual properties.
6. Stay Informed About Ongoing Trends and Future Predictions About Metaverse
Just like real-world property deals, the Canadian virtual real estate market will always require an adaptable investment strategy to optimise your portfolio. Keep a close watch on housing demand shifts, economic factors, property interest rates and increasing/ decreasing rental yields. Also, monitor the community and property dynamics of the metaverse, such as changes in local infrastructure and emerging hotspots for investments. Investors can also profit from any investment incentives announced by designers that enhance the profitability of Canadian virtual real estate investments.
Top Companies that Deal With Virtual Real Estate in Canada
Here are some of the organisations that help investors deal with Metaverse real estate in Canada and also offer wonderful insights about the property’s location and profitability:
TerraZero Technologies Inc.
TerraZero is a cutting-edge technology company that creates 3D virtual experiences and land properties for investors and multiple organisations. It has worked alongside major metaverse companies, such as Decentraland and The Sandbox, and helps companies establish a presence in the virtual world. Some of Terra Zero Technologies’ most famous projects are the Bebe Rexha Activation and BIGG Digital Assets Partnership.
GDA Capital
Still in its early stages, GDA Capital has established itself as a top virtual real estate company for firms that want to invest in the online metaverse world and create a name for themselves in the industry. They also offer Web 3 space solutions, and some of their most famous projects include U-topia, Mallconomy Metaverse, and hosting the Next Top Blockchain Startup.
The Metaverse Group
The Metaverse Group is a real estate brokerage firm for virtual lands, offering rentals, purchases, and sales of land in the metaverse. It has worked with many major organisations, and some of the organisations’ most popular projects include working with Decentraland, The Sandbox and Cryptovoxels.
Square Yards is also investing heavily in the virtual real estate industry and might soon open its own Metaverse portal for land deals.
Build Your Virtual Empire: Invest in Canadian Metaverse Real Estate
Investing in virtual real estate is an excellent opportunity that offers low-risk property investments, creative architectural pursuits and a high potential for returns. The unique features of Metaverse real estate make it extremely easy to avoid government zoning restrictions and allow investors to create a home that is impossible in the real world. People can easily take advantage of the various available websites that work on different models and offer excellent insights about the possible future trends of the metaverse.
Owning virtual real estate land is just as profitable as any real estate deal, as it can be used to host virtual gigs and act as a storefront and even a rental unit. If an investor keeps up with community dynamics and regulatory changes, they can easily maximise returns and mitigate risks. This will eventually make your investment resilient and profitable despite being in a turbulent market that can shift at any given point in time. Secure your future today by investing in a land built exclusively for you, by you, that returns money to you.
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Frequently Asked Questions ( FAQs)
People can easily invest in virtual reality portals by registering on e-portals like Sandbox and purchasing land/ property using their e-wallets.
Yes, any virtual property owner can easily use their land/ property to earn rental income, host live gigs for brands or use it as a trading platform for NFTs.
The first step in investing in virtual real estate should be conducting proper research and estimating the expected returns. Before buying the product, you should evaluate the land/property's usage purpose and whether it will be in demand in the future.
Metaverse Land is a good investment as it can be modified according to personal needs and can earn income for the property owner by being rented and used for virtual events. How to invest in virtual property?
Can you make money from virtual real estate?
How do you start virtual real estate investing?
Is Metaverse Land a good investment?
