The metaverse land market has been growing considerably in the past few years, making it an increasingly viable investment or money-making venture. In fact, Goldman Sachs has placed an $8 trillion valuation on the metaverse land sector, thereby attracting the attention of entrepreneurs, speculators, investors, and metaverse enthusiasts.
If you’re considering buying land in the metaverse, then there are a few things you should know. In this post, we go over what to look for in a parcel of virtual land, how to buy metaverse land, finding metaverse real estate brokers, virtual land appraisals, popular cryptocurrencies, affordable alternatives to buying, and finally various metaverse land marketplaces.
What Is “Virtual Land”?
Virtual land is all the land that you find within a given metaverse. If that answer is still confusing, let’s take a moment to dive deeper.
The metaverse is a three-dimensional (3D) virtual world that allows users to own, create, and/or monetize various digital assets, including virtual land. It’s essentially the next evolutionary step of the internet and is even referred to as Web 3.0 (or Web3).
That being said, virtual land is also known as:
- Virtual real estate
- Metaverse land
- Metaverse real estate
- Digital land
- Digital real estate
Additionally, virtual land is represented by non-fungible tokens (NFTs) on a specific blockchain. An NFT is a digital certificate of authenticity that’s different from other digital files. It’s totally unique, indivisible, verifiable, indestructible, and transferable.
As you can imagine, this makes it the perfect means to record the ownership and/or sale of a piece of virtual land. In essence, if you have the NFT - transferred to your crypto wallet - then you have the deed for a piece of metaverse land.
What Do I Look For When Buying Land In The Metaverse?
There are a few characteristics that you should look at when looking for metaverse land to buy:
Much like real-world real estate, location really is everything. For instance, if you buy a parcel of virtual land that’s near the commercial center of that specific metaverse, then it will command a higher price. That’s because there are more money-making possibilities, thereby giving the virtual land more value.
Additionally, there are more metaverse users who pass through that particular part of the virtual world. Also known as high footfall, this is basically the same idea as high foot traffic in any real-world piece of land.
Interestingly enough, location is still important even though it’s much easier to travel around the metaverse than it is to travel around the real world. However, the precise mechanics of travel vary from metaverse to metaverse.
For example, in the Upland Metaverse, you can teleport instantly between various parcels of virtual land that you own. But if you want to travel to a parcel of virtual land that you don’t own, then you have to pay what’s known as a send fee.
This send fee is actually collected by the owner of the virtual land that you traveled to. As a result, it’s possible to monetize your metaverse land by making it a desirable destination for other players. That way you can collect their send fees every time they come to you.
Size of The Metaverse Land
The basic unit of metaverse land is known as a parcel (or packet in certain metaverses). It is usually 1X1 number of pixels, but the precise size will depend on the metaverse. For example, in the Sandbox, the player’s avatar would experience the parcel as 96X96 meters while in the Decentraland metaverse it would be 16X16 meters.
If you purchase several parcels that are right next to each other, you can build what’s known as an estate. With more metaverse land at your disposal, you can build more ambitious or innovative developments. As a matter of fact, there are even metaverse architects and designers who are developing highly creative and groundbreaking buildings on parcels or estates of virtual land.
What’s important to point out is that virtual land is limited in the metaverse. The precise number of parcels is determined ahead of time by the developers and programmers. This scarcity of virtual land gives it value, which is what’s driving the metaverse real estate market to grow so explosively right now.
Zoning of The Virtual Land
A decentralized autonomous organization (DAO) will decide how the metaverse land is zoned, thereby governing how the parcel of land can be developed. Usually made up of metaverse token holders, a DAO is a governing body with decentralized leadership and total transparency. In other words, all the financial transactions and ownership transfers that the DAO handles are recorded on the blockchain for all to see.
That being said, metaverse land is generally zoned as either:
Usually, the virtual land that’s zoned for commercial use will be located in the geographic center of the metaverse and will be the most easily monetized. It will also have the highest amount of foot traffic from players. Plus, in many metaverses, players spawn right near this commercial hub, meaning that this is where they start when they enter the virtual world.
The DAOs take this zoning very seriously as it plays a huge role in the value of a given parcel of metaverse land. For instance, a DAO has already designated the zoning for all 90,601 parcels of LAND in Genesis City, which is the primary city in the Decentraland metaverse.
The Blockchain’s Popularity
Each metaverse platform will be hosted on a specific blockchain. As a result, the blockchains that are more popular will likely have metaverses that are more popular. This will, in turn, drive metaverse property prices up or down.
As of now, the most popular blockchain for buying, selling, or trading metaverse land is definitely Ethereum. It actually hosts multiple metaverses, some of which are very popular.
How Do I Buy Virtual Land In The Metaverse?
The notion of buying land in the metaverse is becoming increasingly popular. In fact, according to market research by Brand Essence, the metaverse real estate market will grow at a compound annual growth rate (CAGR) of 31.2% over the forecast period of 2022 to 2028. By just about any metric, that’s an extremely impressive growth rate.
As a result, virtual real estate has become extremely popular with investors, speculators, and regular consumers who are metaverse enthusiasts. So if you want to buy virtual land in the metaverse, just follow these steps:
Choose Which Metaverse
There is no single unified metaverse. In fact, there are multiple growing metaverses, some of which have specific themes, aesthetics, or motifs. Although they are located on different blockchains, the Ethereum blockchain is popular with multiple metaverses.
This is an important step in the process. First of all, you might want to choose the metaverse that matches your interests. If you prefer to focus on being creative and the metaverse is focused on music or art, then it might very well be the perfect choice for you. For instance, the Sandbox metaverse is focused on gaming, the Decentraland metaverse is focused on live events, and the Huslverse is focused on music and multimedia entertainment.
Download A Crypto Wallet
You absolutely need a crypto wallet to buy metaverse land. First of all, virtual land comes in the form of a non-fungible token (NFT). Secondly, you’ll have to pay the seller cryptocurrency with your crypto wallet and they will then transfer that NFT to your crypto wallet.
In other words, a crypto wallet does more than just store your money. It also allows you to send cryptocurrency and store any NFTs that you might purchase or trade for. Plus, any other digital assets that you might use within the metaverse, like special items, skins, or artwork, will also come in the form of NFTs.
If you’re looking for a secure and reliable crypto wallet, then MetaMask is always a good choice. It’s designed specifically for the Ethereum blockchain and can be used via a browser extension or mobile app.
Get The Right Cryptocurrency
Each metaverse will be hosted on a specific blockchain and each blockchain will have a specific cryptocurrency or - in some cases - multiple cryptocurrencies. As a matter of fact, there are currently over 18,000 different cryptocurrencies in existence, although there are only a few dozen that are widely used.
Currently, most metaverses are hosted on the Ethereum blockchain, which actually has multiple cryptocurrencies.
Once you identify the proper cryptocurrency for the metaverse you want to explore or invest in, then you’ll have to use a tool to transfer your fiat currency into cryptocurrency. These are commonly known as fiat to crypto exchanges, with some of the most popular being:
Once you get this cryptocurrency, then it will be stored in your crypto wallet.
Look At A Map of The Metaverse
You’ll need to pick what parcel of land you’d like to purchase. Just like buying real-world real estate, you’ll have to take a look at the location and choose the plot that works best for what you want to achieve with the virtual land.
For instance, if you want to monetize metaverse land by developing commercial prospects, then you probably shouldn’t choose a parcel that’s on the edge of the map and away from the commercial center. Most major metaverses will have maps that you can consult, including Sandbox and Decentraland.
There’s also the Huslverse map containing 10,000 plots of land, all of which are for sale. All these plots are divided up into quadrants, each with different themes and unique play-to-earn games. In other words, there will be multiple earning opportunities that you can use to earn tokens or cryptocurrency.
Pick A Metaverse Real Estate Broker
If you’re interested in buying metaverse land but don’t necessarily have the time to research every option and examine the maps closely, then choosing a metaverse real estate broker might be the best option for you. Of course, they’ll take a fee of some sort, but they’ll also do all the preliminary legwork of identifying and analyzing a given parcel of land.
Choose Your Parcel & Make The Buy
This is the final step. Once you’ve chosen your metaverse, you have to pick the actual parcel of land. You then purchase it, either directly from the metaverse developer or via an NFT marketplace. Now you own the land by having the deed transferred to your crypto wallet in the form of an NFT.
How Do I Find A Metaverse Real Estate Agent Or Broker?
If you’re looking to buy land in the metaverse, then it might be a good idea to go through a metaverse real estate agent or broker. They’re more familiar with the metaverse real estate market and can likely get you the best possible virtual land at the best possible price.
However, buying metaverse land is still a new concept. Plus, unlike real-world real estate agents, there is no centralized repository of brokers and no certification process to become a broker.
Despite that fact, there are a few resources you can use to find metaverse real estate agents. These include:
- Metaverse Property. Also referred to as Metaverse Group, this company buys and sells metaverse real estate, develops virtual land, consults for major metaverses, finds metaverse rentals, manages digital property, and oversees advertising for businesses within the metaverse.
- The Metaverse Realtor. This broker group handpicks plots of metaverse land from top metaverses. They then put together comprehensive listings - including informative descriptions, photos, and videos - to help buyers make the right decision.
Those are the two primary options as of early 2022. As the metaverse land market continues to grow and expand, then it’s highly likely that more metaverse real estate agencies will appear and that brokers will become much more common.
Are There Metaverse Land Appraisals?
Currently, there is no standardized system or formula for appraising metaverse land. The entire notion of virtual real estate is new and it appears that many owners, investors, and speculators are figuring it out as they go along. Plus, it remains a fairly volatile market that’s inextricably linked to the volatile cryptocurrency market.
Additionally, there isn’t a long history of transactions for most metaverses, so investing in them is highly speculative. Of course, that doesn’t mean it can’t be highly profitable - it just means that it’s a very new kind of asset. As a result, the experts haven’t yet figured out the price tolerance or interest rates in any specific metaverse.
However, there are multiple companies that are trying to come up with a standardized system for metaverse land valuation and appraisals. Much like real-world real estate, it will still be a speculative venture, but it’ll be a little bit easier to predict profit margins or value growth.
What Are The Most Popular Cryptocurrencies For Buying Virtual Land?
Each metaverse is hosted on a specific blockchain, each of which has a native cryptocurrency or cryptocurrencies. As a result, if you want to buy a plot of land in a given metaverse, you have to choose the right cryptocurrency.
That being said, the most popular cryptocurrencies for buying metaverse land are:
- Ethereum (ETH). There are multiple metaverse platforms and NFT marketplaces on this blockchain, making it one of the most popular for virtual land sales.
- SAND. This is the metaverse token for The Sandbox, a “gamified” platform that’s also built on the Ethereum blockchain. Since it’s both a cryptocurrency and a token, it’s used for value transfers, staking, and governance.
- MANA. This is used for Decentraland, another Ethereum-based metaverse platform with an emphasis on decentralized virtual communities.
- $HUSL. This is the native cryptocurrency and token of the Huslverse, a metaverse platform on the Ethereum blockchain. Token holders can take an active part in the world, including voting on new music drops, entering competitions, and getting invited to exclusive events.
You should always research what blockchain the metaverse is hosted on and that will let you know what cryptocurrency and/or metaverse token is used in that virtual world.
What Are More Affordable Ways To Buy Land In The Metaverse?
If you want to buy land in the metaverse but can’t afford to pay the full price in cash, then there are some other options that are more affordable.
Find A Metaverse Mortgage
You could try getting a metaverse mortgage. This is essentially the same as mortgages in real-world real estate: some lender underwrites your loan for a piece of property based on your financials and earning capabilities. Currently, a company called TerraZero Technologies has started offering metaverse mortgages.
These mortgages require a down payment and a vetting process of the lender’s finances. They also need a business plan from each potential lender to make sure that they have the capacity to properly monetize the metaverse land. Plus, the interest rate will depend on the size and location of the parcel of virtual land as well as the lender’s ability to pay.
Finally, TerraZero is building a relationship with a confidential banking partner to expand its metaverse mortgage capabilities. They’re also creating a metaverse real estate platform called Amadea. It’ll likely resemble real estate search websites that allow users to find pieces of property and calculate their mortgages.
Rent Metaverse Land
This is similar to getting a metaverse mortgage, but you won’t actually own the land in the end. It’s a temporary arrangement that gives you access to a parcel of land, usually for commercial use.
Metaverse land is usually rented by investors, speculators, entrepreneurs, or companies that:
- Want to advertise somewhere in the metaverse; much like a billboard.
- Have figured out a way to monetize a piece of metaverse land but don’t want to actually buy it.
- Are looking for a steady source of passive income once they develop the virtual land rental.
You can find metaverse land to rent with the Metaverse Property rental program. As you might remember from the sections above, they’re also one of the very few companies with metaverse real estate brokers. They currently only have virtual land for rent in a handful of major metaverses, although they’re accumulating more and more virtual land.
There’s also the LandWorks platform that’s operated by EnterDAO. This is a community-driven lodging marketplace and platform - much like Airbnb - where users can browse for metaverse land to rent. Governed by the native token ENTER (ENTR), lenders can also farm the token through the Synthetix staking rewards.
Invest With A DAO
In one of the sections above, we discussed how DAOs are decentralized governing bodies that make decisions about a specific metaverse, including zoning and even how much land is available for sale.
However, they’re also getting involved in other ways. Since buying metaverse land has already become very expensive, there are several DAOs that have been innovating methods for aspiring entrepreneurs who may lack the liquidity but still want to make money from metaverse real estate.
The most notable example is PangeaDAO, a metaverse land cooperative that allows potential investors to buy into sections of metaverse land. They are buying more and more metaverse land to eventually manage a diverse portfolio. As the collective grows, members will vote on various developments that can be built to generate passive income. Plus, this DAO intends to build more equitable virtual worlds and democratize the ownership of metaverse land.
Top Metaverse Land Marketplaces
This is an expanding market with lots of potential for growth. In fact, according to the digital currency investor Grayscale, the various metaverse platforms combined are estimated to be a $1 trillion revenue opportunity via metaverse land, advertising, social commerce, virtual events, and developer monetization.
As a result, there are plenty of investors, entrepreneurs, speculators, or metaverse enthusiasts who want to buy metaverse land. In most cases, the easiest way to do that is via a metaverse land marketplace.
That being said, here are the most popular options:
- The Huslverse. This is the growing metaverse for The Husl, a Web 3.0 music and entertainment company. It’s hosted on the Ethereum blockchain and uses $HUSL as its native cryptocurrency.
- Blockee. Currently in its beta test phase, this marketplace lists metaverse land for sale in multiple metaverses, including Decentraland, Somnium Space, The Sandbox, CryptoVoxels, and Axie Infinity.
- Decentraland Marketplace. This is the marketplace devoted entirely to land plots within the Decentraland metaverse, an Ethereum-based virtual world that focuses on live events.
- Next Earth. Unlike other metaverses, which are created entirely by imaginative programmers, the Next Earth world is based on the actual map of the earth. This metaverse is also hosted on Ethereum and uses the NXTT token.
Which marketplace you choose will obviously depend on where you want to buy metaverse land. Just remember that before you get started, you’ll need your crypto wallet and cryptocurrency. Otherwise, you won’t have the necessary resources to actually purchase any of the listings.
How To Buy Land In The Huslverse
The Huslverse is the metaverse for The Husl, a Web 3.0 entertainment company. Although we focus on music, we also offer all kinds of multimedia entertainment experiences, including collectibles and exclusive events.
Our Huslverse map has 10,000 plots of land, each of which will be for sale. We’re currently releasing them on our marketplace piecemeal. For instance, the first batch of 500 plots sold out pretty much immediately.
The Huslverse will provide users with an immersive and lifelike experience, allowing them to connect with each other and their favorite creators on a deeper, more personal level. The cultural, commercial, and physical center of the Huslverse is Husl City. Surrounding this hub are four quadrants with different themes:
- The Land of Movie Stars
- The Land of Athletes
- The Land of Musicians
- The Land of Artists
Within these, there are multiple landmarks and features that correspond to each of the four quadrants, including a:
- Opera House
- Art Gallery
- Recording Studio
- Sports Village
- Indoor Stadium
- Olympic Stadium
There will be multiple play-to-earn games in each area, giving users plenty of opportunities to earn cryptocurrency and/or metaverse tokens. The whole concept is to prioritize radical exclusivity, transparency, diversification, collectability, and community. The experience will go beyond just listening to music or surfing the internet - users can enter an immersive and dynamic 3D environment.
Follow the HUSL and stay tuned for the upcoming Huslverse!