The risks and rewards of investing in the metaverse real estate boom

Real Estate

There’s a land rush happening — and it’s not in New York City or Beverly Hills.

Early speculators, professional real estate agents, and celebrities are buying up land that doesn’t even exist in the real world. They are investing in metaverse real estate, a concept mind-boggling to most people.

So, what exactly is the metaverse? Technologists say the metaverse is the next level of the internet. It’s a virtual reality platform where people can play games, connect with friends, attend meetings, and even go to virtual concerts. Ever since Facebook announced it would change its name to Meta and focus on building its own digital world, interest in metaverse real estate skyrocketed.

In fact, real estate sales in the metaverse surpassed $500 million in 2021 and could double in 2022, according to data from MetaMetrics Solutions.

How much does it cost virtual land buyers?

The average real estate parcel in The Sandbox metaverse platform was worth $2,620 in mid-October, according to nonfungible.com. A month later, after Facebook’s announcement, that price skyrocketed to $11,042.

Watch the video above to learn more about the risks and rewards of investing in metaverse real estate.

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