Virtual Real Estate

Market Meditations | November 18, 2021

? Moon Landings

Buy land, they’re not making any more of it.”

It’s doubtful Mark Twain had the metaverse in mind when he said it, but this advice still rings true at times. Digital land is finding a new rate of growth and with it comes new opportunities.

? Investing in Real Estate

Virtual real-estate minted as NFTs make up a rapidly growing and evolving market. In June, Decentraland saw a $913,000 purchase for 259 parcels of land.

In most cases, land can be purchased from a primary market, like Star Atlas’ marketplace or from existing owners listing plots on secondary markets, like OpenSea.

? Plotting The Course

Let’s identify some key factors to look for when getting into the real-estate game.

  • Location, location, location. Pay attention to where the plot of land is positioned in the world. Certain locations are much more valuable than others, just like in the real world.
  • Size Matters. This one is rather intuitive. Bigger is almost always better.
  • Vacancy Available. Supply and demand rule the financial world. If the demand is higher than supply, land will be more expensive. Accurately identifying games before their popularity skyrockets make for ideal land investments.
  • Popularity Contest. Possibly the most important consideration, a game’s hype, community support and popularity all should be thoroughly assessed before deciding to invest.
  • Utilities Included? The stronger the use-case for land, the stronger the chance of finding a good investment. Resource generation, storage, crafting… any passive income resulting from a land investment should be taken into consideration.

? Can I See the Property?

In The Sandbox’s metaverse, land is an integral asset which allows designers and developers to publish experiences.

  • There are two types of lands (LAND) available in The Sandbox: regular and premium.
  • LAND has many uses in The Sandbox
    • Players can play games and explore dioramas built on plots of land.
    • Owning LAND will allow users to stake $SAND tokens in the LAND plot to earn rewards.
    • LAND holders can rent out their property to monetise it.
    • The ability to host contests and giveaways are tied to LAND ownership.

In Illuvium, the land grab is swiftly approaching.

  • The upcoming land sale is yet to take place.
  • In Illuvium, purchasable land will have 5 tiers.
  • Illuvium’s land will have several purposes:
    • Landowners can “scan” for Illuvials on their owned plots.
    • Land will generate resources used to complete different objectives and activities.
    • Blueprints, used for generating skins, will also be generated by digital real estate.

Both above projects have substantial community followings and hype surrounding them. Depending on the attributes of the specific parcel of land and its price, we could see some very lucrative opportunities pop up.

⛲️ I’d Like to Make an Offer

Investing is all about information. Getting into a new asset class can be just as rewarding as finding any other hidden gem.

Just remember before closing on the new place; do the leg work. It pays off in the end.