Factors Impacting the Value of Metaverse Land 

Metaverse Land is one of the most trending and valuable activities in the metaverse currently.

From musician Snoop Dogg to PwC, celebrities to corporates are investing in land in the metaverse. Sandbox and Decentraland are buzzing with sales of metaverse real estate deals.

– Reports state that Snoop Dogg has a total of 122 metaverse plots of land, 67 premium plots, and 3 estates. (Businesschief)

– Sandbox has a total of 166,464 plots up for sale while Decentraland has 90,000. (Businesschief)

Many people are keen to make an investment entry and would like to know on how to purchase land in the metaverse?

Basically, metaverse land parcels are blocks or spaces which are programmable and customizable as per the  requirement. So if you want to create a metaverse classroom, you can customise the space to set up a classroom with a board, chairs, and other features. The same goes for shopping and events.

Metaverse Land is expected to gather more interest as the metaverse market grows.

– In 2021, the global metaverse market size was valued at USD 22.79 bn.

– It is expected  to exhibit a CAGR of 39.8% between 2022-2030 (Global data)

The metaverse will transform how people live, work, shop, and connect and is projected to be the most impactful technology yet.

How to Invest in Metaverse Property?

As you purchase real estate in the real world, so you can buy virtual land via specific metaverse portals. The transactions are recorded on the blockchain and happen via cryptocurrency. The deed of ownership is registered as NFTs. You need to register with a platform, create an account, open a digital wallet, browse listings and buy through the currency in the digital wallet.

It is suggested to check out the currency the platform deals in and its credibility.

Factors Affecting Metaverse Land Value

We list down the major factors that currently determine the value of the real estate in the metaverse.

Popularity and Recognition

The more popular and recognized and happening a place, it is sure to get more footfalls. More footballs imply more number of people who can be customers. This makes the property appreciate faster.

Location

Spaces that are in proximity to other popular locations also garner attention. They might not be the busiest hub but being nearby gives them certain advantages.

• For instance, an enthusiastic fan of  musician Snoop Dogg paid a whopping $450,000 to acquire land adjoining Dogg’s property (Forbes)

Utility

For commercial complexes, the area’s utility and scope can increase the prospects. What can the place be used for? For metaverse learning or shopping? Or as a hub for meetings and events?

Supply and Demand Ratio

Virtual Real Estate just like physical real estate is based on supply and demand.

Places that fall under the above-mentioned categories will have a high demand and hence will be valued at high prices.

As people enter the metaverse as avatars, they will wish to invest time in the metaverse. This will probably motivate them to purchase metaverse land for their use. Their purchase will all depend on a combination of various factors.

Many opine that in the metaverse location really shouldn’t matter. Its only a question of turning your headsets and teleporting to some other location. However again opinion differs. For example if there’s a virtual concert by a celebrity, most likely the attendance would be massive and hence advertising options for big brands. This would definitely impact the rental rates.

Growth and Risk Factors

– Gartner predicts that the metaverse will gather steam and by 2026, more than 30% of corporates will be having a base in the metaverse. Moreover, by 2026, people will spend more than an hour daily and use it for various purposes like work, shopping, learning, entertainment, and social connection.

– As per a report in Forbes, Metaverse real estate shot up by 700% in 2021 (Forbes)

–  Metaverse Real Estate sales will probably hit the $1 billion mark in 2022. (MetaMetrics Solutions)

However, many people would like to consider the risks as well. First-time users would like to know how to access the metaverse, or will investments in metaverse virtual land be a good decision?

Just like physical real estate, the appreciation and depreciation would depend on macroeconomic factors. As long as the metaverse developers keep the content and experiences unique and relevant to the target audiences, the risks would not get magnified. Users crave value and if they get that value, users would come back for more.

Conclusion

Metaverse Land is being bought for many purposes. Land for educational purposes is a most sought-after trend. Many schools and colleges are opening up metaverse versions. In case you want to know more about investing in metaverse real estate in the education sector, connect with Edverse. Edverse is the world’s leading and most impactful educational metaverse solutions provider.