There is a huge demand for virtual land these days. The explosive growth of the metaverse has resulted in this phenomenon. Traditional assets are not offering adequate returns to investors. Hence, they are seeking alternatives to fetch income. Thus, the buzz around digital real estate is growing. COMEARTH, the world’s first e-commerce metaverse on the Polygon blockchain takes a look at how the Web 3.0 era is revolutionizing the buying and selling of property.
How COMEARTH plans to make a foray into digital real estate
Brands can create unique experiences and directly connect with their customers. Users can shop, discover their favourite products, and also attend events in the metaverse. Land and plots in COMEARTH will be sold as NFTs. Holders are called Citizens. They receive rewards for promoting the right kind of engagement on the virtual planet. COMEARTH aims to build a 3D immersive metaverse ecosystem that powers e-commerce for 100,000 brands by 2025.
Digital Real Estate: The numbers that matter
$2.3 million – A Genesis Land plot on Axie Infinity was sold for $2.3 million. It is said to be an extremely rare piece of land as there are only 220 in existence. This indicates that virtual land parcels have a lot of utility in the popular Play-to-Earn (P2E) game.
$2.43 million – Tokens.com purchased a 116 parcel estate on Decentraland for $2.43 million in November 2021. It will be used to organize digital fashion shows and set up retail shops for selling virtual clothing. The land is 6090 sq. feet in size and is located in the “Fashion Street” area on the map of Decentraland.
$4.28 million – Republic Realm bought a virtual land on the Sandbox for $4.3 million. It purchased 792 parcels of land from Atari SA. By owning a central plot in the Sandbox metaverse, Republic Realm has created a record for the largest virtual real estate transaction.
$500 million – Digital real estate sales surpassed a mind-boggling $500 million in 2021. Decentraland, The Sandbox, Somnium Space, and Cryptovoxels are the 4 platforms that have generated the majority of the sales. This number could double to $1 billion in 2022. Importantly, there are 268,645 parcels on the four platforms. The value of virtual land will depend on the extent of scarcity, the location, and the visual appeal.
The key trends to watch out for in Digital Real Estate
The business plan of the borrower related to virtual real estate is analyzed. Later, the parcel or plot is bought on behalf of the borrower. The borrower gets the NFT and the title of ownership after repaying the loan.
Firms offering specialized solutions in virtual real estate will emerge. They will take care of different aspects like buying, selling, leasing, construction, and tenant representation. Moreover, technology platforms will help in directing connecting landowners with potential buyers and renters.
Virtual Reality and Augmented Reality
Buyers need not make physical visits to properties. Owners can offer an AR/VR tour of their premises. Thus, prospective investors can wear headsets and gear and view the plot/ land in 3D mode. They can enter the presentation suite, have a look at the amenities, and also compare different properties. Both the interior and exterior parts of homes can be showcased. Virtual staging, where pictures of real homes and furniture get augmented will become more common.
Ownership of property is distributed across a specific number of tokens. It democratizes access to small investors as they can get a share of ownership depending on the number of tokens they own. Tenants make rental payments in cryptocurrencies and stablecoins.
It improves liquidity and promotes decentralization through crowdfunded ownership. Investors can choose their preferred property by taking part in Initial Fraction Offerings (IFOs). Blockchain technology will assist in the registration of property and digitization of title deeds. It will also store the records of ownership in a decentralized manner.
Tokenization simplifies the process of investing in real estate. Property owners can generate cash flow without worrying about rental collection, tenant management, and maintenance. Generally, the tokenized property is rented out to tenants and the yields are distributed among token holders.
The virtual real estate industry will be worth $5 billion by 2026. The pace at which digital parcels of land get bought by institutional investors will increase. Brands will purchase virtual land and use it as their metaverse headquarters. Land parcels in the metaverse are also unique and non-interchangeable. End your wait to become a powerful landlord in the metaverse! Talk to our team now and acquire your first piece of virtual real estate.