It’s no secret that many global enterprises and celebrities are jumping into the metaverse fray and purchasing virtual real estate left and right. They’re spending anywhere from hundreds of thousands of dollars to millions to acquire property in the metaverse, as prices soar to as much as 400% to 500%.
Case in point, virtual real estate prices in The Sandbox start at 1ETH or approximately $2800 – $3,000. Republic Realm, a digital real estate development company, spent $4.3 million to purchase a parcel of virtual land. In 2021, the company sold virtual private islands that go for $15,000 each. This year, it’s estimated that the private islands are valued at $300,000 each.
But just how much should virtual real estate cost? Is there a way of knowing how much a parcel of virtual land is worth?
Determining the Value of Virtual Real Estate With Whale Analytica’s Metaverse Property Appraiser
Virtual real estate values often tend to be exaggerated. To give investors access to fairer property values in the metaverse, Whale Analytica introduced the first Metaverse Property Appraiser, a solution that will allow investors to know how much digital real estate can potentially cost.
The Metaverse Property Appraiser has an engine that’s powered by artificial intelligence. The tool crunches data based on criteria that can impact the price of a particular piece of virtual real estate, such as location, floor pricing, traffic, and buy/sell prices, enabling it to generate estimates of fair-valued property.
The tool provides users with relevant data, including floor price, volume, sales figures, and the number of unique owners. It provides an incorporated map that shows the land view, trading view, value view, and traffic view (this feature is currently only available for Cryptovoxels).
Here’s a rundown of some of the features and capabilities:
- Land map – lets users view the size of different parcels of virtual land;
- Trading map – lets users compare current sales price and floor price;
- Heat map – allows users to identify properties of interest.
Using the heat map, investors can determine whether a property is currently not for sale and which parcels are undervalued or overvalued. The heat map will show white, green, and dark red parcels, respectively. When you click on the map, you’ll be provided with data for the parcel you’ve selected, including the difference between its sales price and its fair value.
Choosing a parcel of virtual real estate that suits you best can be daunting. The Metaverse Property Appraiser has a sort and filter function that allows you to narrow down your choices based on criteria such as their Buy Now Price, Last Price, Fair Value, and Fair Value vs. Sales Price.
The Metaverse and Virtual Real Estate
As virtual real estate prices continue to soar due to increased demand, it’s challenging for potential investors to know just how much a parcel of virtual land can cost. By leveraging data science and artificial intelligence, the Metaverse Property Appraiser lets us access valuable insights to help us make informed decisions when it comes to digital assets.
Additionally, it enables us to assess the value of virtual land through fair value estimates, allowing for greater transparency and honesty in virtual worlds.