How Real Estate Entered the Metaverse
Six months since Facebook rebranded to Meta, the metaverse has evolved from an idea to an investor’s playland. Yet, there are still many unknowns and limited knowledge on the potential impact of this new technology on society and the economy. Unlike physical real estate, there are no rules or laws dictating how owners can use the parcels of land. Owners are free to develop, lease, sell, or even use their virtual real estate as they see fit. There are no limitations on how many retail or apartment buildings can be created in a metaverse. Today, roughly 95 percent of all virtual real estate sales occur in The Sandbox or Decentraland, two of the Big Four virtual worlds. The most significant real estate transactions to date in the metaverse have been by crypto-based investment companies. The largest buyer is Everyrealm, which has purchased 792 parcels of digital real estate in The Sandbox for $4.3 million with plans to collaborate with video game company Atari.