Remember how experts used to say that location is the most imperative facet of real estate and how it influences property rates? Well, that’s not the case anymore. Now, people all over the planet are paying REAL money for VIRTUAL real estate!
Yes, you heard it right. Here’s more...
• A Canadian investment firm bought a plot of digital land and paid $2.43 million in crypto. This is considered one of the most notable purchases in the Metaverse to date.
• The digital “Mars House” was recently sold for $500,000. The transparent virtual home can be built in real life by glass furniture makers in Italy, said Krista Kim, its author, and creator.
• And who can forget Beeple, the artist who sold an NFT for $69 million in May 2021?
So what’s the deal here? Why are people suddenly shifting to the Metaverse? What’s in it for the investors?
Let’s find out.
Metaverse & Blockchain - The Two Digital Pillars of the Real Estate Industry
Despite the high prices, people are inclined towards transitioning to Metaverse real estate.
Since its inception, the technology has allowed humans to take ownership of virtual assets as transactions have become significantly secure. The technology has since been incorporated into the world of gaming and art to facilitate ownership of in-game assets and more. Here’s what real estate owners can do with blockchain and the Metaverse in the coming years:-
• Develop land, construct malls, shopping complexes, houses, shops, and more.
• Run businesses or lease the land to others.
• Host parties and social gatherings.
• Re-sell the land for a profit.
• Use the property as collateral to raise a loan from banks.
• Create adventure parks.
• And possibly everything that can be done in real life.
The Metaverse & Blockchain Adoption
Blockchain, a powerful, new world technology, is currently being leveraged by several industries ranging from finance, security, and healthcare. The next stop is travel and tourism. This is where LynKey comes into play. The blockchain-centred platform provides a decentralised approach to real estate and travel, rendering transaction history unalterable and transparent.
The Canadian investment stats mentioned above is the ideal case in point. Clearly, commercial real estate in the Metaverse is going to play a crucial role in the global real estate industry. But does it really have a future? How are the current and future markets of Metaverse looking?
Metaverse - The Current & Future Scenario
Like in the real world, virtual buildings and other real estate are being sold in the digital world. You can find real estate agents, rent agreements, smart contracts, and more, just like you would in the real world.
In fact, according to Globe-News Wire, the metaverse real estate industry is expected to grow at 31.2% CAGR during 2022-2028.
Blockchain-powered platforms like LynKey are investing billions of dollars towards the tokenisation of the industry. What’s more intriguing, by leveraging blockchain technology, LynKey aims to transform real estate into a liquid asset, changing the entire dimension of how people used to look at property investment.
Now let’s respond to the question of the hour - Why are Real Estate Investors Migrating to the Metaverse?
In today’s digital realm, it’s nearly impossible to imagine a life without technology. Moreover, the social distancing restrictions and lockdowns due to Covid-19 diverted the traffic online.
And this is what led to the soaring demand for a second reality world. Enter Metaverse...
Experts believe that travel and real estate are two sectors that are likely to leverage the power of Metaverse in the coming years. Investors want to cash in on this incredibly profitable opportunity. Therefore, real estate buyers in the virtual world are not just limited to commercial buildings/land but also extend to communities and luxury properties like hotels and resorts.
However, the challenge here is that the experience of buying or renting a property is inconvenient, tedious, time-consuming, and not to mention, expensive. Ranging from contracts to signing off the property rights and, of course, the hassles of dealing with intermediaries are just gruesome.
This is what LynKey, a blockchain-powered platform, aims to help overcome. LynKey not only aims to enable peer-to-peer transactions to accelerate the legal processes but also leverage smart contracts to streamline and automate them. These smart contracts can be programmed to initiate actions and execute orders as required instantly. The best part? There is no need for a broker or an intermediary; you can keep the entire process restricted and secure.
Clearly, The Possibilities are Endless…
This new world, a second-reality world, is still being settled in and will most certainly require a lot more than a few digital currencies and a dominant network to flourish.
However, as of now, the transfer of property ownership is a labour and cost-intensive process. That’s just not it. In today’s market, the value is attached only to real-world assets. LynKey understands this, which is why the project is unique and exceptional. By tokenising $8 billion in travel, tourism, and real estate, the company aims to “blockchain” it all. This tokenisation will allow tangible, real-world assets to be traded on the blockchain through exchanges like utility tokens, eliminating barriers to entry.
The real estate and travel world may be on the verge of being revolutionised forever. So would you wait, or do you want to grab this incredible opportunity and enter the new realm of virtual real estate?
Don’t forget to sign up for the LynKey ecosystem TODAY!
Citiesabc was created by a team of global industry leaders, academics and experts to create new solutions, resources, rankings and connections for the world’s top cities and populations.