While virtual reality and its platforms have long remained at the game stage, it is now possible to buy real estate in several Metaverse. Wealth A7 explains this growing trend.

Buying real estate on the Metaverse, how?

Recently we could witness the birth of Horizon Worlds, the Metaverse of Facebook, there are many more, the main ones being Sandbox, Decentraland or Cryptovoxels. These Metaverses are actually platforms where virtual reality users can meet and exchange. However, it is now possible to invest in virtual real estate, these purchases are made only with cryptocurrencies and each virtual world has its own currency. The price of these properties are constantly increasing and last year the company Republic Realm spent $4.3 million to purchase a property on The Sandbox. The land and its availability is specific to each platform, for example The Sandbox sells its land in dribs and drabs and notifies future investors through communications on social networks.

These lands are also bought by brands, such as Samsung or Adidas, in order to offer their products via the platform and reach a new clientele.

Property rights and NFT

The ownership of these lands is guaranteed by the NFT, the non-fungible tokens. Indeed, when you buy a property on a Metaverse, for example on Cryptovoxels, the sale is organized thanks to a Smart Contract, a computer program. This Smart Contract works in a simple way: "IF" the customer pays a certain amount "THEN" a non-fungible token will be delivered to him to guarantee the uniqueness of his property. This NFT records all the transactions that have been made on this property and marks the uniqueness of the property, in simple, nobody else can have this land. The Smart Contract is kept on a blockchain and therefore benefits from its secure and unforgeable character.

A speculative bubble?

It is important to specify that in contrary to the real world where your property right is guaranteed by the law, in a Metaverse property is guaranteed by a company, which raises the question about the durability of a virtual world. On one hand, 500 million dollar’s worth of virtual parcels have been sold in 2021 and people who buy this type of property have one main objective: not to miss an opportunity. On the other hand, the rarity of this property depends entirely on the company's policy, and if the company decides to no longer limit acquisitions and build an "infinite" world, the price of land could fall significantly.

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