Metaverse real estate is land plots in virtual worlds. Simply put, they are pixels. But it's more than ordinary digital images. These are programmable spaces on virtual reality platforms where people can chat, play games, sell NFTs, attend meetings, go to virtual concerts and do many other virtual activities.
Buying real estate in the metaverse is much the same as buying NFTs. Your ownership document is a unique piece of code on the blockchain. This code certifies your ownership or rights to this piece of digital land.
The Metaverse provides users with a place where they can connect with others online. People can use their digitized land for games and communication. Creators can monetize content on their properties by charging access fees or trading their NFTs. Brands can use their virtual property to advertise services, organize virtual product launches, and provide unique customer experiences. Virtual real estate can be bought (in whole or in part), sold or rented, just like in real life.
The value of digital real estate rests on speculation and has no objective justification. The number of virtual sections is programmatically limited, but nevertheless, nothing prevents the platform developers from creating additional virtual sections or launching a new metaverse. Thus, now the value of virtual real estate lies only in its investment potential, since so far it doesn't bring significant advertising or rental income.
Another problem is that no one knows which metaverse project will become the market leader in the long term. Right now, The Sandbox and Decentraland are at the top, but if Meta launches its own metaverse, these projects could drastically lose popularity, and real estate in them will not cost so much. Most likely, only a few metaverses will become popular in the future, and the rest of the metaverses will lose their users, as happened with social networks or video hosting services.
The metaverse is still relatively new. Investing in it entails great risks. But it can be worth the risk, thanks to the equally large potential for high returns. However, you must exercise due diligence before making a risk decision, as is the case with all other investments and business ventures.