Unreal Estate

Do you dream of having your own plot of land, but think real estate prices are out of reach? Introducing virtual real estate: you can now buy, build and lease out property in the metaverse in exchange for just a few grand.

The concept of the metaverse – a virtual world where one can live, work, and interact with others through a VR headset – has garnered strong public attention since corporate giants such as Meta ($META), Apple ($AAPL), Disney ($DIS), and Netflix ($NFLX) started investing billions into its development. 

Corporations are not alone either: the Pacific nation of Tuvalu made news earlier this month for getting involved. At COP27, foreign affairs minister Simon Kofe  announced that the sinking of Tuvalu had forced its people to digitally recreate the island on the metaverse for its survival. As some sort of proof, the recorded video of Kofe’s address panned out to show that he was actually presenting from within the metaverse.

While the scepticism surrounding the success of the virtual world is still quite high, forward-looking tech enthusiasts may find the concept of virtual property investment an appealing endeavour. 

Here’s how it works. Metaverse land is sold in the form of non-fungible tokens (NFTs) that may be purchased using either cryptocurrency or fiat, depending on the broker (yes, there are metaverse property brokers already). Once the virtual land is owned, which is recorded on the blockchain, investors can then choose to keep it as is or develop it through programming. Accordingly, there are now “meta architects” who can build you a virtual house, dance club, casino or whatever you dream of. If you’re feeling crafty, you can even do it yourself.

Metaverse land is still in its infancy, meaning parcels of land can go for less than US$10,000. Interest has been building quickly though – total transactions of virtual land reached US$501m in 2021 across the four leading metaverse platforms. Notable entities that are now metaverse land owners include JP Morgan, Adidas, Samsung, rapper Snoop Dogg and the country of Barbados.

Do you think investment in digital real estate is a good idea? Some certainly do, as the plot of land next to Snoop Dogg’s virtual estate sold for a jaw-dropping US$450,000 last year. It’s probably the most affordable alternative if you really want to be neighbours with a global celebrity.


Want more?

You know what to do

Insights, trends and company deep dives delivered straight to your inbox.

Stake logo
Over 7,000 5-star reviews
App Store logoGoogle Play logo

Subscribe to our free newsletters

By subscribing, you agree to our Privacy Policy.

Stakeshop Pty Ltd is registered as an overseas company in New Zealand (NZBN: 9429047452152), and is registered as a Financial Service Provider under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (No. FSP774414). We hold a full licence issued by the Financial Markets Authority to provide a financial advice service under the Financial Markets Conduct Act 2013. However, the content on this website has not been prepared to take into account any of your individual objectives, financial situation or needs. To the extent you require further information about the relevant New Zealand legislation that may apply, or require specific advice, please contact your legal and/or financial adviser (as appropriate). The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services. At Stake, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Any advice is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate taxation and legal advice. Please view our Terms & Conditions, Privacy Policy, Financial Advice Disclosure and Disclaimers before deciding to use or invest on Stake. By using the Stake website or service in any way, you agree to our Privacy Policy and Terms & Conditions All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance. Stake is a registered trademark under class 36 (New Zealand).

Copyright © 2024 Stake. All rights reserved.