Real estate has traditionally been a significant component of investment portfolios for many individuals. However, in addition to physical properties, today’s investors are also considering an alternative type of asset—virtual land. Building a portfolio of virtual real estate has the potential to become the next big trend for those willing to embrace new technology.

Virtual real estate refers to unique plots of land that exist within digital worlds and possess legal ownership through a deed. These digital realms can be likened to video games but incorporate more social and community aspects. Land within the metaverse, which encompasses various virtual worlds where virtual land can be purchased, holds considerable value, even attracting attention from celebrities like Snoop Dogg and companies such as PricewaterhouseCoopers.

But why would anyone invest in metaverse real estate? The surge in interest in augmented reality, virtual reality, and metaverse real estate gained momentum following the rebranding of the social media giant Facebook to Meta, along with its announcement to invest in the virtual reality space. Despite initial scepticism, acquiring parcels of virtual real estate is similar to investing in real-world properties in many ways.

There are two compelling factors that make virtual real estate appealing to investors. First, similar to the physical world, virtual property is limited in supply. Owning virtual real estate grants individuals possession of a unique piece of land within the metaverse. They have the freedom to utilise it for various purposes, such as constructing income-generating properties like rentable buildings or interactive venues that charge admission or promote brands.

Secondly, each parcel of metaverse real estate is distinct and secured by a non-fungible token (NFT). Essentially, an NFT serves as a digital deed or proof of ownership for a digital or tangible item. It provides a unique identifier for the virtual real estate, ensuring ownership rights and facilitating resale to other owners. Additionally, it automatically records all property transactions, eliminating the need for manual title work. In essence, it functions as a digital deed for the 21st century.

So, how does one buy and sell virtual land? The process of acquiring and trading digital assets within the metaverse is relatively straightforward. Most metaverse platforms can be accessed easily through desktop computers, enabling individuals to inspect virtual real estate before making a purchase decision.

Once a specific parcel of virtual real estate is chosen, prospective buyers can conduct research on third-party reseller platforms like OpenSea.io or NonFungible.com. These platforms provide information on sales history, if available, and allow comparisons with nearby properties that serve as potential benchmarks.

To facilitate the purchase, individuals will need to open a digital wallet capable of storing their digital assets, including the cryptocurrency used for transactions. The choice of wallet depends on the metaverse platform being used, and each platform will provide instructions on preferred wallet options and how to link them.