Buying property ain’t cheap— be it in the real world or on the virtual real estate market!
While we might be in the midst of a global recession, housing prices have remained high this year. The global real estate market is expected to grow at a compound annual growth rate of 10.5% and reach a value of US$3750 billion in 2022.
If properties in the real world seem out of reach, just wait until you hear about how expensive land in the metaverse is. People and companies alike are spending millions to get their hands on virtual real estate and become a list of early adopters of the metaverse. With that said, here is a list of the top five most expensive pieces of land sold across different metaverses.
1 .Curzio Research x TCG World—US$5 million
On May 24, 2022, financial publishing company Curzio Research announced its partnership with the world’s first 4k metaverse TCG World. As a part of this partnership, Curzio Research will receive 19 commercial real estate properties in TCG World which are collectively worth US$5 million.
The company plans to build its Asian headquarters inside TCG World where company executives can meet investors and attend live events, seminars and conferences. Curzio Research intends to raise US$4 million to fund part of this virtual real estate purchase. The company has also received TCG World security tokens, which represent a stake in the metaverse.
2. Republic Realm x The Sandbox—US$4.3 million
On November 30, 2021, metaverse investment company Republic Realm bought a piece of land of The Sandbox metaverse from the video game company Atari SA for US$4.3 million. This is not Republic Realm’s first virtual plot purchase, the company owns around 2,500 plots of digital land across 19 virtual worlds to diversify its virtual real estate investments. Some of these are developed into virtual properties to be further rented out. Republic Realm and Atari SA plan to collaborate on the development of The Sandbox property.
3. Metaverse Group x Decentraland—US$2.4 million
On November 23, 2021, the Metaverse Group (a subsidiary of crypto investment company Tokens.com) bought land on the Decentraland metaverse for US$2.4 million. The purchased land, which is 6,090 virtual square feet in size, lies in the Fashion Street area of Decentraland. The Metaverse Group intends to use this land to host fashion shows and sell clothing for avatars.
4. Metaverse Group x Axie Infinity—US$2.3 million
The Metaverse Group was on a roll in November 2021. The company bought another piece of virtual land on November 25, but this time in the virtual blockchain gaming platform Axie Infinity. The company bought the Genisis Plot on Axie Infinity for US$2.3 million.
5. Book Local Project x Decentraland—US$1.9 million
The final entry on this list is also a piece of virtual land on the Decentraland metaverse. On November 30, 2021, the hotel booking marketplace Book Local Project, sold their virtual land Decentraland for US$1.9 million.
So, should you buy land on the metaverse?
While you might have heard that one of the investments that always appreciate in value is real estate, the same isn’t true for virtual land. Virtual land only holds its value for as long as the metaverse is popular. Once it is no longer trendy to have property on said metaverse, property prices would fall.
Moreover, people pay for their metaverse purchases using crypto, which in itself is extremely volatile—just consider the recent price crash in the crypto market. So a sudden change in crypto prices could also lead to a fall in the value of your virtual real estate holding. Despite these risks, there is also a greater reward to investing in virtual properties.
The crypto volatility could also work out in your favor and increase the price of your land. Besides, the metaverse is expected to grow by 30% till 2030 so investing early enough should give you an edge over competitors. It is also important to note that there is a limited supply of land on each metaverse.
Hence, if the platform you do end up investing in turns out to be popular, the sky is the limit on the kind of returns you might end up making. The choice of whether to take the risk or play it safe ultimately lies in your hands. Make sure to carefully consider both the pros and cons mentioned above carefully before making a decision.
This article is meant for informational purposes only. Please make investment decisions based on your own discretion.
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Header image courtesy of The Sandbox