Since time immemorial, the need to invest in real estate has been emphasized by experts because it is considered a very safe and affordable investment. It is not just an affordable investment, it has a characteristic of higher returns for investors, unlike stock exchange investment.
There are numerous available plots of land on earth today and anyone who needs one will surely get more unless they are looking to buy on planet Mars.
One of the benefits of real estate is the passive income it accrues to investors who earn income through rent payments as a fixed income stream, as well as an appreciation of the property’s value.
Indeed, taking advantage of a real estate asset is a good investment strategy that allows investors to expand their wealth even with little or no cash at hand.
As much as real estate sounds like the perfect investment, it is not so for every investor, despite all the many benefits it offers. Real estate requires the owner to save up a huge sum of money and make a down payment instead of purchasing gradually like other properties. Problems with down payments are that they cannot be liquidated easily to deal with an immediate need for cash.
Therefore, even though there are lots of benefits of investing in this type of asset, they have high barriers when compared to other traditional avenues.
Investing in NFT lands in the metaverse is a viable way to address this gap between big investors and small investors. People can capitalize on the opportunities of the metaverse to create wealth, earn more money and create wealth without any restrictions posed by the real world.
These give so many rewards to the investors through building a home, business, storefront or even a community. However, all these are achievable with the security backing the blockchain technology which also verifies the authenticity and ownership of each original plot.
Commercialization is another possible reward for investors who want to increase their wealth. As the metaverse grows, digital owners rent out land to the many people who visit these worlds and they will earn more money through rent, leasing, building virtual properties or trading for other NFTs.
Since the similarity and difference between digital and physical real estate become increasingly unclear, NFT land continues to be positioned as a substitute for traditional real estate.
What Is Real Estate?
Real estate is simply any tangible asset, especially land and other tangible construction that may be built on it. This could be a building that has been built there or even a road, or something built underground.
A land that has any of these structures is called “an improved land” but called “an unimproved land” if it lacks them.
Depending, real estate can either be an empty land or a hotel at Lekki or your home.
What Is Metaverse Real Estate?
Metaverse real estate is not so different from the physical world real estate. The metaverse is a digital world, hence, metaverse real estate is plots of lands in the virtual worlds. Even though they are pixels, they are more than just images.
These are programmable land spaces where people socialize, play games, attend weddings, and attend meetings. In fact, people can do anything done in the real world on the metaverse.
Since there is a rise in the engagement of people in the metaverse, metaverse real estate will grow and expand as well. There is a boom in the metaverse since Facebook changed its name to META in 2021 after picking interest in the metaverse.
Also Read: 3 Ways To Spend Money In The Metaverse
An Overview Of Virtual Lands
Before we can have a clear definition of this concept, consider the existence of digital reality in a virtual space. This virtual space is what the general populace, tech investors and crypto enthusiasts define as the metaverse.
Most metaverse platforms give users a realistic experience as they rely on a three-dimensional setting and an immersive element that reflects the real world in numerous ways.
These virtual projects are often partitioned into small areas and sold as “land” just like the physical world. Often, the asset’s native cryptocurrency is used to carry out the transaction, although some projects may permit the use of fiat money.
Many still believe that the main question behind these metaverse projects has largely been unanswered.
The real question is “Why buy something in the virtual world rather than the real world?”
Well, the virtual world is just a place where people assemble to fulfil their social needs, this was quite proven in some movies like “Ready Player One”. This is why more people are joining these platforms.
Taking a different viewpoint, one may understand that virtual reality(VR) could be the bridge of the inequalities between residents of severely impoverished countries who may never enjoy the same real-world lifestyle as the multimillionaires of the rich nations.
Another factor follows the trend of how and where people are spending their time. The fact that more people are engaging online makes it more interesting than the assets they intend to display to their peers could exist in the digital realm. Hence, it may not be as difficult or scarce as skeptics once believed it would be to facilitate the transition from physical to digital space.
Lastly, the research for different digital applications for businesses to maximize profit is still in the developing stages. Sequel to the Covid-19 pandemic, many conferences and hosted events have taken a virtual setting which has enabled team members across the globe to fully participate, save the cost of plane tickets and promoted greater collaboration.
It’s a good thing that even as the world opens back up to physical commerce, many aspects of virtual workplaces can still be sustained.
Accessing A Digital Community
As opposed to what some might believe, the process of purchasing and selling metaverse land is fairly simple and one of ghe biggest decisions is choosing a platform in which to participate.
An outstanding notable project above the rest is KEYS Token, a cryptocurrency ecosystem running on Ethereum(ETH), based on real estate. According to the product roadmap, KEYS already launched its Meta Mansions NFT collection with plans for additional releases and also a rental app.
As part of the Meta Mansions collection, a luxurious residential community split up into 8,888 virtual NFT mansions within the proprietary KEYS Metaverse are available as plots.
Unlike other digital landscapes, the KEYS Metaverse is powered and created by Unreal Engine 5, through a $100 million partnership with Genius Ventures.
The metaverse is an avenue for investors to generate active and passive cryptocurrency income just like a regular entrepreneur would do in the real world, by creating businesses, designing and selling assets and providing services.
The benefits of holding KEYS digital real estate also extend beyond just the digital world. It allows investors to gain exclusive benefits on partner products and services and any exclusive KEYS events that will be hosted both in the KEYS Metaverse or the physical world.
Real estate investment is attractive as it enables investors to earn passive income and enjoy rent payments as a fixed income. Whether digital or real-life estate investment, one can still reap the benefits of real estate investment.
Therefore, as real life and digital estate become even more closely linked, metaverse investors are offered a new opportunity to diversify their investments and take part in building the next big thing on the internet.