The metaverse is still a young concept. Investments in it carry significant risks. However, given the equally high likelihood of major profits, it might be worth the risks. However, you must conduct your due research before deciding to accept risks, just like with any other investments and business endeavors. But now, there is a new twist to it.
The real estate industry has experienced some major technology upheavals during the past few years. Virtual land sales have started gaining substantial traction, because of which technological breakthroughs are completely transforming the real estate industry. The metaverse is now extremely popular worldwide, thanks to the increased adoption of technology.
New virtual worlds are being created at a dizzying pace, and the testing of business models in these brave new virtual worlds has put everyone, from large businesses to creative startups, in the media spotlight. The fact that individuals are purchasing, constructing on, and using virtual land in creative ways is also generating new prospects for the conventional real estate sector in the metaverse.
You are probably left confused with a few questions about metaverse real estate if this is a new concept to you. If you are also curious about the metaverse real estate business, keep reading to learn more.
What is metaverse real estate?
Real estate in the metaverse refers to plots of land or residential and commercial structures that exist in a virtual environment. You can build any kind of property on that site, including billboards for advertising, business districts, and the corporate headquarters of actual companies.
The metaverse real estate is actually just pixels on your computer screen. However, many platforms have been built to be programmable environments where users can interact socially, trade non-fungible tokens (NFTs), play games, promote their goods and services, and even attend meetings using 3D avatars.
Digital real estate is anticipated to increase in value with the growth of the metaverse. In reality, once Facebook changed its name to META and signaled a targeted interest in the metaverse, there has been a boom in metaverse real estate in the last quarter of 2021. The price of metaverse real estate is anticipated to increase by 45.2% CAGR from 2020 to 2025 as its popularity rises.
How to build real estate in the metaverse?
The component level of metaverse real estate development consists of steps like building the infrastructure, producing content, and finally defining the operating logic through protocols.
But this merely prepares the property’s framework. For users in the metaverse, the digital infrastructure should offer a variety of services. The next step will be to add content to the properties, such as design, layouts, assets, and the range of activities.
Defining the operating standards and protocols comes last. These would specify the governing laws and regulations, as well as commercial logic like buy-sell agreements, rental contracts, etc.
Step 1: Choose a platform
Creating real estate in the metaverse calls for a wide range of abilities. Before anything else, you must choose which platform you want to use for creating your real estate metaverse. The foundation to build a democratic and community-driven virtual world is currently provided by all major blockchain platforms, including Ethereum, Polygon, Algorand, Solana, and others.
This implies that a blockchain-based metaverse is supported by the capability of a smart contract, which requires certain actions to be taken in response to certain circumstances. We require decentralized finance for maximum functionality, which is why it’s crucial to enable cryptocurrencies and NFTs.
You can select those platforms to establish real estate properties inside existing blockchain metaverse platforms like Decentraland, Sandbox, etc. Building a metaverse ecosystem from scratch and adding real estate properties is the key to creating a larger and more specialized platform.
It is recommended to create a metaverse real estate software from scratch and incorporate the capabilities and features of your choice because the existing metaverse platforms are still in their infancy.
A skilled metaverse real estate development company like ours can always help you here by streamlining the procedure.
Step 2: Make a metaverse smart contract
A metaverse smart contract is a set of unchangeable “rules” that cause specific actions to be taken when particular conditions are satisfied. One feature of the smart contract is the ability to start a transaction between a buyer and a seller after both parties click “Agree.”
Smart contracts can also be used to specify and carry out leasing agreements between two parties. This includes terminating the agreement if the renter disobeys specific rules or conduct guidelines.
Smart contracts are the foundation for fully utilizing the advantages of a virtual real estate metaverse ecosystem. You can tokenize real estate assets into non-fungible entities by using an NFT smart contract.
You will need to work on smart contracting based on blockchain technology. You would specifically require the knowledge of a metaverse blockchain development company at this point. Since both physical and digital real estate depends on financing for growth, blockchain is a crucial part of any enterprise.
Step 3: Design the metaspace as per your choice
The next logical step is to construct the metaspace after selecting the metaverse digital real estate platform.
An app, a virtual conference room, a virtual meeting room, or even a virtual home theatre can all be considered metaspaces. A user with a VR headset can enter Metaspace, a virtual environment. The ideation of the metaverse real estate property comes once the platform has been completed. It entails designing the building’s architecture.
The size of a metaspace can be as little as a room or as large as a metropolis in its entirety. Similar architectural design skills are needed for real estate properties in the actual world. You may easily carry out 3D designing and virtual reality application development in line with the goal of a blockchain-enabled platform with the support of a metaverse development business.
Step 4: Build a layer for interaction
The interaction layer construction comes next. You are now developing the application logic to allow assets and characters to engage with the digital real estate of the metaverse.
Accessibility, navigation, communication protocols, and user controls are all governed by this layer. An easy illustration is when a user uses an entry pass to enter the main gate of a real estate establishment, like an event hall. It is necessary to specify the integration with external apps at this layer. For instance, devices like Zoom, smart glasses, virtual reality goggles, headsets, haptic gloves, sensors, etc., are needed for video calling.
Everything develops the connection between the physical world and the enabled metaverse at this layer.
Step 5: Build an interoperability layer
The metaverse’s reach is increased by interoperability, which also increases involvement. For instance, a user of one metaverse might desire to purchase tickets to and attend an event taking place inside a piece of real estate in the other.
Interoperability across several underlying blockchain technologies is crucial to achieving the same.
How can Appinventiv help in the Metaverse real estate property development?
Appinventiv has an expert team of software developers who have gained global experience in providing digital solutions for enterprises across different domains. With the use of the latest technologies, Appinventiv offers a thoroughly innovative metaverse development company and its services keeping the practicality of the application intact.
Appinventiv can provide you with its metaverse development services to create a real estate business in metaverse that is built as per your preferences and choices. The metaverse real estate app development will be focused on customizing solutions for your specific needs, and the outcome is guaranteed to bring profits.