The dawn of the metaverse is officially upon us, which means immersive gaming, socializing, and property sales are now virtually available. Our reality is going digital through Web3.
The concept of valuing assets in the digital world is still mind-boggling to most. How does one actually own non-tangible real estate, and what is its purpose of it? Technically speaking, digital real estate, also known as virtual lands, serves as a place for individuals to coexist in the metaverse.. Digital identities can build restaurants, homes, recreational areas and everything else here, just as we do in reality.
Speaking in real estate terms, there are multiple revenue streams in digital real estate. Firstly, investors can purchase a plot of land and build with limited boundaries. For example, Snoop Dogg is currently developing a “Snoopverse”, his own virtual world in the metaverse, on Sandbox, which he claims is “the future of virtual hangouts, NFT drops, and exclusive concerts,”.Although intangible, property in the metaverse can definitely be profitable. In June 2021, a piece of land sold for more than $900,000 in Decentraland, one of the metaverses’ most popular digital real estate platforms.
So how exactly does one become a property developer in the metaverse? Unlike traditional real estate, appraisals are unjustified, thanks to the blockchain, but there are still opportunities to negotiate on price. Most digital real estate platforms allow you to put in an offer, which can be accepted or rejected by the owner. For example, OpenSea has an auction list, allowing users to place bids. In this sense, the worth of the land is dictated by the market instead of the appraiser.
In the metaverse, buyers have greater independence, reflecting the motive of decentralization. Real estate agents negotiate on one’s behalf and commission fees are non-existent when purchasing land on the metaverse. In order to purchase virtual land, buyers simply need to have a funded wallet, a selected parcel, and a price decided upon. The transaction is then recorded on the blockchain and an NFT is generated as a title deed with exclusive ownership.
Due to launch in 2022, award-winning metaverse pax.world allows users to buy land via outright purchase or through participation in its creator competitions. By owning a piece of land in pax.world, users are able to log on to their portal and create their own mini metaverse of their own. Here they can implement any service or feature their imagination can dream of, with no level of detail is off-limits.
To assist users in their property selection, pax.world has built an internal land sale application. Through this users can purchase a seaside property, be up in the hills with a lake view, next to a building designed by a world-renowned architect, or just find a quiet space with friends.
Pax.world has already created an island of 30,000 tiles, 8,000 of which are go straight towards the community and goodwill organizations. The community has the power to decide if these tiles are released for sale, with a certain portion set aside to be released throughout the year for those planning on developing the land.
The price of digital real estate in top metaverse platforms is quickly on the incline. Digital real estate is an exciting new space, attracting communities, creators and investors globally. For those who are looking to get in the space early enough, pax.world already has 10,000 parcels ready to be owned by its community of neighbours and will be ready to distribute 4,000 parcels before its launch in Q3 2022.