Ever since Mark Zuckerberg announced that Facebook would be changing its name to Meta and explained its foray into the metaverse, the world has been paying more attention. Monarch is no different. Especially when there is so much buzz about companies buying real estate in the metaverse. In fact, these are not small purchases with the average ticket being in the thousands of dollars and in some cases, millions!

We love to pioneer and are keeping our eyes on these new real estate ventures. It is early in the game, but at the same time, it seems to be coming and fast. Here are some basics to get you started:

  • The metaverse is made up of different “worlds” or virtual environments. The main ones today are video game.
  • There are some metaverse worlds that are not games and are about meeting up in the virtual world. 
  • Each world does not have indefinite amounts of land. They are predefined and the idea is to create scarcity in each of these worlds to give the land value.
  • Each of these worlds has its own crypto currency.
  • There are retail brands in the metaverse. For example, Gucci has a store that allows you to buy accessories for your avatar.

For those that are making strides and buying real estate in the metaverse – what are the main uses? There are five main uses right now for real estate in the metaverse. 

  1. Business: Whether it’s retail or an art gallery, people are opening business that cater to life in the metaverse.
  1. Events/Parties: This is predicted to be one of the greatest uses. Landowners will host an event on their land and charge for entrance. For example, Snoop Dog hosts parties in the metaverse called Sandbox. Concerts will likely be very popular.
  1. Games: People create their own games and host them on their land in the metaverse.
  1. Experiences: This has a lot of potential. Users will visit these lands for a unique virtual reality experience. A common example would be traveling to different destinations.
  1. Home: Believe it or not, people are buying land and then hiring developers to build them a personal home. People will have friends over just like they do in the real world.

Regardless of the use of the land, there are still components that make it valuable (or not). What is fascinating to us at Monarch is that the components in the metaverse are similar to what gives land in the real world value. Top components include:

  • Location: Still what really matters! For example, let’s say you bought land in a videogame metaverse, and it was located right next to land in the game where users need to do something. In other words, lots of gamers would go by your land. Therefore, it is more likely that they will explore your land while they are in the middle of their game.
  • Size: This is obvious, but the more land you have the more valuable it is.
  • Scarcity: Remember, land in each metaverse is not infinite. Therefore, if a popular metaverse doesn’t have a lot of land left, the value will go up.
  • Popularity: This is the most critical. If you buy land in a metaverse that no one is visiting, you can only imagine its value. However, if you have land in a popular metaverse and in a good location, then it can have a lot of value.

As we already mentioned, it is still early in the metaverse real estate market. However, we do feel it is going to grow and we will continue to watch it. Right now, it is the wild west and many are just guessing where to buy in hopes that they pick the right metaverse and a good location. This is very risky. Nonetheless, if you want to start to familiarize yourself with land in the metaverse, then we suggest logging on and visiting these current metaverses that do seem to be getting some traction… 

  • Dentraland
  • The Sandbox
  • Mirandus
  • Upland
  • Somnium Space

Of course you can always just keep your feet on this universe stay tuned to all the happenings at Monarch as we will most definitely be keeping our eyes (or headsets) dialed in.

Until next time,

Brian + Ben

Monarch CRE

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