Home News And you thought Boston home prices were high. What about properties in the metaverse?

And you thought Boston home prices were high. What about properties in the metaverse?

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Welcome to a new world with physical real estate So Last century and virtual land swaps are traded in cryptocurrencies instead of dollars. The idea behind the Metaverse is that this will eventually be the next stage of the Internet, where people will virtually socialize and do business and need a better place than Zoom.

Are you still confused?Just ask your child to explain the game platform Fortnite When RobloxA kind of virtual reality that has already taken over the universe, eh, Metaverse.

But if Metaverse real estate becomes more popular, how do you price it?

In real life, Boston is a very expensive real estate market, primarily due to the lack of available housing. But the Metaverse couldn’t theoretically see a drought in a house if it could continue to code more space.

“Shortage has been a key factor in defining land prices over time,” said James Scott, director of the MIT / CRE Real Estate Technology Initiative. “Does that rarity exist in the Metaverse? Or is it just an illusion of rarity? Before this shortage becomes a reality, regulations and policies need to be defined and implemented more clearly.”

The Metaverse is still far away, but the illusion of rarity seems to have already boosted sales. Because it will be a product for everyday users. Today, it resembles Digital Frontier, with early operators performing a modern iteration of “Go West, youngman.”

Real Estate Sales across Four Major Metaverse Platforms (sandbox, Decentraland, VoxelsWhen Somnium space). Total $ 501 million According to MetaMetric Solutions, in 2021. Prior to the cryptocurrency crash in recent weeks, this year’s sales were projected to exceed $ 1 billion.

Perhaps the most famous example of expanding the focus on the Metaverse is where Facebook arrived when it rebranded its parent company as Meta, where future resources are primarily concentrated.

But much of this is a vague big picture. How big is this and how many Bostonians really care? There are numerous e-land lots available for purchase next to the fictional virtual Tom Brady Mansion.

“Buyers of these things tend to be crypto speculators,” said Janine Yorio, CEO of. Everyrealm, Metaverse Real Estate Investors and Advisory Companies. “Metaverse real estate prices range from about $ 500 per parcel to $ 10,000 per parcel, so it’s expensive, but for the vast majority of people interested in doing this kind of thing. Is still very achievable. Therefore, there are both individual buyers and large companies. “

Buyer pools also tend to be small: Earlier this year’s report Everyrealm has found only 25,000 crypto wallets We held Metaverse real estate.

“There are different entities that hold asset classes, but they’re actually in the hands of very few people and businesses,” says Yorio.

Of course, much has happened to the economy since many of the Metaverse real estate sales transactions took place earlier this year.Experienced overall cryptocurrency market Wipe out with a valuation of approximately $ 2 trillion Bloomberg reported from November to early June last year.

However, not everyone is sounding the Metaverse warning siren just because the huge source of that money is the crater.

“The collapse of the crypto market is certainly not good for the market as a whole, but we believe that the long-term metaverse is very independent of crypto because it concerns social media, video games and new media channels. About the speculation, “Yorio said.

So what’s the point of buying virtual real estate? Transactions typically include cryptocurrencies linked to one of the major Metaverse platforms. For example, the MANA cryptocurrency is used to buy real estate in Decentraland.

Potential buyers can make offers to any land listed in the Decentraland marketplace. When the seller accepts the bid, the purchase is recorded via a non-fungible token (well known as NFT). Buyers need a digital wallet that can hold an NFT to keep a record of ownership. ((((MetaMask It is a popular digital wallet. )

However, some analysts warn that it may still be premature for the average investor to make important business or personal real estate investment choices in the Metaverse.

“If you’re talking to a lot of people in the real estate industry, sure [venture capital] Those in high-end financial conditions generally feel that it is too early to make a major investment in the region for this element of investment, “says Scott Real Estate Technology. Said. Initiative at MIT. “There is still no technology, regulation, and understanding to consider this a true value investment.”

Simply put, the average Bostonian probably doesn’t think about buying land in the Metaverse instead of buying a home in the suburbs.

“There are too many unknowns to overcome the role of real estate in the Metaverse at this point,” says Scott. “But no doubt [that] Social interaction, collaboration, retail, and personal experience will lead the move towards adoption of this innovation. “

Yorio cautions novice investors before considering real estate transactions in the Metaverse.

“It’s ultimately an early stage venture investment built on top of the crypto layer,” she said. “The fact that it is very risky and very volatile and at some point in the future there may be an opportunity to generate recurring profit in the form of a rental stream or something similar or other type of cashing. Nevertheless, the fact is that it is a very volatile and risky investment and, as such, it is not like real estate in the real world. “

The Metaverse real estate game is certainly long, but experts say it’s also generational.

“Think of the time kids are playing with Roblox, and they’ll expect them to live in these virtual worlds,” said Jake, Community Head of the Cultural Metaverse Platform. Steinermann said. Spatial.. “”[They] Spending a lot of money on their virtual clothes [and] The world they are building. They are spending a crazy amount of money. “

When did you build a building in SimCity with a completely fictitious wallet? We knew very little about you — but maybe sometime in the future don’t underestimate the Metaverse as a viable place to do real estate transactions.

Cameron Spellance can be reached at [email protected].. Subscribe to Globe’s free real estate newsletter, a weekly digest of buying, selling and designing. pages.email.bostonglobe.com/AddressSignUp.. Follow us on Twitter @GlobeHomes..

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