Tightly tied around the crypto bubble, the realisation of Metaverse technology is becoming increasingly popular. Of course, this means that Metaverse developers have instantly started to introduce monetisation into the technology. Out of all of the current monetisation methods, Metaverse real estate is one of the most profitable.
The price of Metaverse real estate is nearing real world prices
Reported by The Economist, Metaverse real estate is spiking in price. Inside Metaverse worlds such as Sandbox or Decentraland, participants are able to purchase virtual land with cryptocurrency. Additionally, they're able to resell property to other players.
While the Metaverse is still in its infancy, the technology is already making massive amounts of money. For example, Legacy, a Metaverse representation of London, has already sold $54 million worth of virtual land. Per The Economist, SuperWorld Metaverse has sold digital versions of major landmarks, one of which is currently up for re-sale at $400,000.
Out of every Metaverse, Sandbox and Decentraland are by far the most pricey. In recent months, a plot of land in Sandbox sold for $4.3 million to Republic Realm, a Metaverse real estate company. Essentially, it’s the Metaverse equivalent of Zillow, buying up properties with the hopes of renting and resale.
Post-Facebook’s announcement of its Metaverse, prices on rival platforms have skyrocketed. Virtual plots that sold for the equivalent of $20 are now on the resale market for $100,000, emulating the real-life housing crisis — because that's what you want in your video games.
Virtual housing is a multi-billion dollar industry
At the rate that it’s currently climbing, Metaverse real estate is becoming an extremely profitable business. However, many predict that virtual lands are the modern equivalent of Beanie Babies, destined to become worthless in the years to come.
Nevertheless, The Economist notes that virtual real estate is an expensive industry. At the time of writing, virtual land revenue is expected to land anywhere between “$1 trillion and $30 trillion.