Current State Of Metaverse Real Estate Development

Real estate in the Metaverse has the same essential economic characteristics as in the real world. It can be bought and sold, borrowed and rented, advertised, and so on.

Despite the high risks of investments, the metaverses have already attracted a huge number of partners among well-known brands. However, the bear market of 2022 had a negative impact on this activity. On the other hand, this trend ‘healed’ the Metaverse. Tech companies and start-ups have stepped up development to return attention to this area.

So what are the latest developments in the Metaverse real estate industry, and is it still a good investment opportunity?

Metaverse real estate stats

A rapidly growing fan base and increased sales have brought the Metaverse to the attention of the media, the public, and investors worldwide. According to the Influencer Marketing Hub, "Average land purchase price on major metaverse platforms increased from $1,265 to $12,684," a 10x increase from January 2021 to February 2022. McKinsey reported that "more than $120 billion was invested in the metaverse real estate in 2022" — more than twice as much as in 2021 ($57 billion).

Business mobility payments: On the road to change

These are stunning results for such a young industry. However, the rapid growth of market capitalization does not guarantee the continuation of this trend.

Most likely, the real value of land in the Metaverse can be assessed after the end of the hyper-growth phase. Although, some early investors have already capitalized on the popularity of the Metaverse. For example, a plot of land next door to Snoop Dogg's property was sold for almost half a million dollars.

What's new in the industry?

Despite the bear phase of the market, developers aren't taking a rest and already coming up with fresh ideas on how to improve the virtual world.

INTERPOL launched its own Metaverse

The International Criminal Police Organization (INTERPOL), at the 90th session of the General Assembly in New Delhi, presented a metaverse specially created for law enforcement around the world.

"The fully operational INTERPOL Metaverse allows registered users to take a virtual tour of the headquarters of the Interpol General Secretariat in Lyon, interact with officials through their profile pictures, and even take immersive training courses on forensics and other aspects of policing," the statement said.

Affyn and Singapore

Affyn is moving forward in its NEXUS World metaverse. The platform announced that Singapore would be the first city in NEXUS World. It presents 2,000 freehold land plots.

The Affyn Metaverse uses mobile geolocation features in Metaverse cities with direct real-world mapping, which means that all 2,000 sites are mapped to an actual location in Singapore. Plots are classified by "rarity" levels:

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Each lot has a combination of features and climates, including snow biomes, rocks, grass, sand, etc. The number of objects corresponds to the story's rarity level. Those with higher land levels will have access to additional benefits, such as increased chances of making rarer "pals."

Decentraland launched virtual property rental

The Metaverse platform Decentranland has announced a new feature that allows its virtual landowners to essentially become landlords. Owners can now officially rent their property to other users of the platform for predetermined periods of time. This allows users to earn passive income from their metaverse assets.

Decentraland categorizes land owners as the accounts or wallet addresses that own the smart contract for land, whether it be "plot, estate, or both." All land leases are executed using MANA tokens.

The platform gave examples of digital universities renting out land to build campuses or DJs renting space for clubs or parties.

As with most physical property leases, Decentraland owners cannot sell the land and receive any offers to buy until the lease expires.

Decentraland's Twitter followers have suggested that the same rental service should also be available for wearables. Overall, the community response has been positive.

Nvidia unveiled an open-source metaverse toolkit

New Nvidia tools now include the Omniverse Avatar Cloud Engine (ACE). According to the developers, thanks to ACE, the work of "virtual and digital assistants" will be improved. With Omniverse ACE, a developer can build, customize, and deploy their avatar apps on virtually any engine in any public or private cloud.

In the update of the Audio2Face app, digital identity is at the core. According to an official statement from Nvidia, users will be able to control the emotions of digital avatars depending on the situation, including facial animation.

Another addition to Nvidia's update is Nvidia PhysX, which is "an advanced real-time physics simulation engine." This means that developers will be able to introduce realistic characteristics of interactions with physics in the Metaverse, which will obey the established parameters.

Is Metaverse Real Estate still a good investment?

Nowadays, there is an increase in the activity of various projects related to the Metaverse. This is not very noticeable to the layman simply because many projects are in the process of finalizing their products. But no doubt, as soon as the crypto market starts to return to growth, we will see a lot of revolutionary products.

By 2030, more than 50% of events will likely take place in the Metaverse. McKinsey predicts that the Metaverse could grow to $5 trillion by 2030. This is equal to the volume of the Japanese economy. Based on this data, we can expect a new real estate boom in the Metaverse.

Let’s take a look at some promising Metaverse companies that are expected to explore in the next year.??

Top 3 promising Metaverse projects to invest

Let's leave the overhyped and already big-cap projects like Decentraland and The Sandbox, and review some smaller but promising ones.

Wilder World

The creators of Wilder World promise the most beautiful Metaverse on the market because they make graphics on the ultra-modern Unreal Engine 5. The first city in WW will be Miami, which was created using 3D scanning of a real city using lidar.

On the Wilder World marketplace, you can buy land, sneakers, and works of art - all in the form of NFTs.

The developers have prepared a limited series of 501 flying cars, the wealthy owners of which can literally soar above the road. Where will they float? Of course, to a chic penthouse with "hanging gardens": 108 apartments in a spectacular skyscraper have already been ‘built’ and are waiting for buyers.

NetVRk

Here land plots are sold on the open market at a price range of 2.5 thousand to 4 million US dollars.

Professional 3D artists can create compatible 3D objects for the Metaverse. NetVRk offers a lot of ways to monetize their work. Creators of worlds and games can charge other users for entry, place ads in their spaces, rent out territories and 3D objects, and, of course, sell as NFTs.

Users can literally (with their hands) sculpt landscapes from the ground and place 3D objects from the store on them. Everything you need to create your favorite computer game is here: houses and roads, cars and motorcycles, weapons and ammunition.

In this Metaverse, things are pre-equipped with real physical properties and functionality: glasses break, cars drive, guns shoot.

Sensorium Galaxy

The authors wanted to create the best platform for virtual concerts and parties. Users were promised the effect of live presence and a rich sensory experience, so the developers relied on Unreal Engine 4, as well as on the avatars of performing artists with cinematic detail.

Celebrities such as David Guetta and Armin van Buuren spent 24 hours a day in the Motion Capture studios to house virtual copies of themselves in the Sensorium Galaxy.

In 2021, the developers announced a technology that seems unusual even for the emerging metaverse market: digital immortality. The Sensorium Galaxy user avatar will be able to act not only under the control of the owner but also independently. Thanks to machine learning algorithms, the built-in chatbot gradually takes on the owner's characteristics.

Also, this Metaverse has big plans to introduce a wide real estate market.

Conclusion

Despite the negative market impact in 2022, the Metaverse is still moving forward with fresh ideas and concepts. With so much potential growth, it's important to keep up with the latest trends and developments in the Metaverse industry.

The development of the Metaverse is still in its early days, but with market leaders such as Facebook and Microsoft pouring money into research and development, we can expect to see exponential growth in this industry in the coming years. This is good news for those of us who are investing in Metaverse real estate now, as we stand to make a fortune if all goes according to plan.?