The dynamics of metaverse real estate are beginning to mirror the property markets in real life. Case in point: having awesome neighbors can greatly boost the value of your virtual land. But grabbing a plot near a beloved celebrity comes with a huge financial cost; the investor who recently paid almost half a million dollars to be a neighbor to Snoop Dog can vouch for this.
Celebrity factors aside, assuming that you have acquired prime real estate in the metaverse of your choice, what you decide to build on your parcels will be the primary determinant (aside from location) of the land’s ultimate worth. Will you grab a prefab design, build something from scratch, or pay a virtual-world architect to build your dream house?
Most of us are up to our tits in real-life to-do lists; we simply don’t have the time to meticulously construct a killer virtual residence. Likewise, homebuilding chops in the metaverse are difficult to come by – each platform demands proficiency in different programming languages, 3D rendering capabilities, and real estate bylaws.
Being a do-it-yourselfer with a garage full of handy toolkits and sexy hardware does not fluidly translate into contractor status in the metaverse. Holding the keys to a gorgeous digital crib means forging alliances with architects, interior designers, and virtual stonemasons. This is why several denizens of the VR world are turning to TerraZero.
TerraZero is a leader in virtual real estate, giving clients the ability to buy or rent homes and buildings in several different metaverses. In addition to designing and constructing a huge volume of custom dwellings positioned to sit pretty on virtual yards, they have begun manufacturing a series of prefab structures (retail stores, sports arenas, luxury houses, office suites) that are consistently epic.
In addition to fabricating God-level retail, industrial, and commercial structures, TerraZero runs a full-service virtual real estate brokerage – buying, leasing, and renting the most in-demand parcels in the metaverse. They have become a leading market-maker for virtual property, matching buyers and sellers across the Web3 universe.
Most of us are getting tired of walking around Decentraland and looking at bare green plots of land. Few things suck the joy out of the metaverse more than trudging through blocks of undeveloped and underdeveloped land. Speculators are to be blamed for many of the vacant lots; they continue to buy up virtual property with no inclination or intention to place beautiful structures at their elite addresses.
A quick flip for profit is what matters to this new breed of real estate tycoons. Many of these land traders are using sophisticated algorithms that incorporate both market data and sentiment analysis to identify the most lucrative buying opportunities. (Note: In the case of Decentraland, the total number of virtual parcels is capped at 90,000, which imposes horizontal limitations on land arbitrage.)
Virtual land speculation is detrimental to the extent that it does nothing to build a sense of community or social cohesiveness – both are vital if a neighborhood is to thrive. The hope is that metaverse land purchases will be made by real-life communities – organizations that have a vested interest in creating virtual districts that provide tangible value for their members and those allied with them. The metaverse imitates real life: all it takes is a few bad neighbors to drag down the whole neighborhood.
Kanye Moving In
With Kanye making moves into the metaverse, a mad dash to grab property adjacent to Mr. West’s VR residences will soon commence. We are at an inflection point in the universe of virtual worlds where star power and celebrity allure will determine which metaverses–and the neighborhoods within them–thrive and which slowly wither away. Meanwhile, we are trying our damndest to determine where Kayne is moving, and when.
William Laurent is regularly featured in American Banker, Foundry, and Tech for Good to name a few. He’s advised over 30 Fortune 500 companies across North America and Asia on content strategy, data visualization, and digital/cultural transformation. He is an influential educator, writer, artist, crypto dad, and husband. His artwork and NFTs are sought-after collectibles. Connect with William on DeSo and LinkedIn.