WORDS: DEBBIE HATHWAY :: PHOTOS: SUPPLIED AND IMAGES BY UPKLAYA ON FREEPIK
In global terms, property pundits forecast that the value of the metaverse real estate market could reach $5.37bn by 2026.
According to the New York Times, despite the collapse of FTX and predictions of an impending cryptocurrency winter, the metaverse real estate market is poised for substantial growth.
Experts project that it will expand by $5.37bn by 2026. That’s more than BrandEssence research revealed a year ago (January 2022). Global demand in terms of revenue was pegged at $358m in 2020, growing at a CAGR of 45.2% from 2020 to 2025.
TOKENS FOR TRADING
Real estate ownership in the metaverse is represented by a unique digital identifier called a non-fungible token (NFT). These tokens, like real-world parcels, define specific coordinates, which can be combined to form an estate. This virtual land is purchased using cryptocurrency, and owners can use it to create many experiences and environments.
Despite existing in a digital world, the real estate concept remains unchanged. Whether physical property on a city block or virtual land on a blockchain, the ownership, development, and use of these assets remain consistent.
By mid-2022, $1.9bn worth of land had been sold across the top 10 virtual world platforms. Curzio Research bought 19 commercial metaverse properties in TCG World in May of that year for $5m. About a month later, GGtoor smashed that record by spending $102.3m to purchase 4,144 unique properties in the same metaverse instead of going with established metaverses like Decentraland or The Sandbox.
VIRTUAL SPACES INSPIRED BY REAL COMMUNITIES
Africa’s answer to the metaverse is Ubuntuland, developed by Africarare, where high-profile clients such as MTN and Primedia and South African advertising agency, M&C Saatchi Abel, have invested in virtual property.
Ubuntuland is a community inspired by the circular enclosures commonly used in traditional African architecture. It consists of 204 642 plots of land of varying sizes and prices arranged in different village clusters. The land is valued and priced according to a tiered system. Landholders can customize their 3D land spaces by setting up shops, producing resources, renting virtual services, or developing games and other applications.
The community has designated areas for work, play, and wellness. These spaces include state-of-the-art meeting rooms, online therapy rooms with optional anonymity, concert stages, film festival spaces, meditation lounges, and other interactive environments. Additionally, there are plans to introduce staking, DAO (decentralized autonomous organization), and blockchain-based play-to-earn gaming.
PROPERTY WITH TWO EXPERIENCE ZONES GO TO AUCTION
Ari Ben of AuctionInc explains that each property comes with different features. “You can develop the property to create experience zones, which users can access and interact with the brand in various ways. We took a property with two experience zones to auction in March, promoting it through traditional advertising channels and outdoor billboards to create hype.”
The property was part of AuctionInc’s monthly multi-property event in March, the last lot in a physical auction of R250m worth of commercial property at Masingita House in Houghton, Johannesburg. “Initial signs look positive however, as with all new disruptive technologies, it will take some time until meaningful traction is achieved,” says Ben.
This is merely the start of the journey, and as with any beginning, it is vital to acknowledge that challenges often accompany opportunities. Watch this space.
Peter H. Diamandis
* Africarare will be hosting the A360 Metaverse Space Adventure from 5-9 June, a self-timed learning format that will enable participants to learn from A360’s visionaries in Ubuntuland. Hosted by world-renowned futurist Dr Peter H Diamandis, speakers will discuss how to harness the latest technologies, create wealth and solve the world’s most significant challenges.
To learn more about the A360 Metaverse Space Adventure, or to book tickets, go to https://www.diamandis.com/a360-metaverse-adventure.
