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How NFTs are making real estate investments more attainable

By Mahesh Limbani May 20, 2022

Analysts continue to view real estate as a secure and lucrative investment based on its history of higher returns, especially when compared to traditional stocks. 

In many ways, stability can be likened to the scarcity principle driving demand. But ultimately, there are only so many plots of land available in the world today unless explorers move beyond Earth’s borders. One more benefit of real estate is passive income since many real estate investors make money through rent payments that provide a steady income stream on top of the property’s value increase. Of course, leveraging a real estate asset makes the investment more attainable, enabling users to expand their holdings even without having enough cash on hand.

Yet, real estate is not the perfect investment for every investor despite these numerous benefits. Unlike other assets which can be purchased incrementally, real estate requires the owner to save a substantial amount of money before placing a down payment. Concerns around down payments are second to the level of risk in holding a property investment, as it cannot be liquidated easily to address an immediate need for cash. Therefore, despite the advantages of investing in this asset class, the barriers are still relatively high compared to other traditional avenues.

Addressing this accessibility gap, land in the metaverse, also known as NFT land, is a rapidly growing sector in which many players are capitalizing on similar opportunities to create, earn passively and grow their wealth without the drawbacks or restrictions imposed in the real world. Some of these examples include the seemingly unlimited opportunities to test an investor’s creativity through bespoke creation of a storefront, home, business, or even entire community tailored to their liking. Of course, all this can be done with the security that comes with blockchain backing, which verifies the authenticity and ownership of each original plot. 

A case can also be made for investors looking to increase their wealth through commercialization. As metaverse platforms continue to grow and more people start visiting these worlds, digital landowners realize earnings by renting out land, selling it, building virtual properties or businesses, leasing it out or trading it for other NFTs

Therefore, as the lines between digital and physical realities become increasingly blurred, NFT land continues to be positioned as the equally lucrative brother of traditional real estate.

A closer look at virtual land

To give this concept a definition, consider that digital reality exists in a virtual space, one that tech investors, crypto enthusiasts and the general population define as the metaverse. On most platforms, users will find a realistic experience, relying on a three-dimensional setting and, therefore, providing users with an immersive element that mirrors the real world in many ways.

These projects are often divided into smaller areas and sold as “land” or “plot” offerings like the physical world. Each plot is often purchased with the asset’s native cryptocurrency, although some projects may accept fiat. 

To some, however, the question remains largely unanswered: Why purchase something in the digital world rather than the physical one? As movies like Ready, Player, One proves, the virtual world is just a place where people can fulfill their social needs, which is why more and more people are joining these platforms. Taking a different perspective, many look to residents of impoverished countries who may never be able to enjoy the same real-world lifestyle as a multimillionaire. For some, virtual reality (VR) has been seen as the bridge to overcome these inequalities — the great equalizer, if you will.

A third factor taps into trends of how and where people are spending their time. As more people engage online, it makes sense that the assets they want to display to their peers or their “flexes” could exist in the digital realm. For these reasons, it may not be as far-fetched as skeptics once believed to facilitate the transition from physical to digital space. 

Last but certainly not least, the exploration of the myriad digital applications for businesses to realize a profit is still in its nascent stages. Following the COVID-19 pandemic, several hosted events and conferences have already been moved to a virtual setting, enabling team members from across the globe to participate. With cost savings from plane tickets and greater collaboration, it makes sense that many aspects of virtual workplaces will carry forward even as the world opens back up to in-person commerce.

Accessing a digital community

Contrary to what some might believe, the process of purchasing and selling metaverse land is fairly simple, and one of the biggest decisions is choosing a platform in which to participate.

One notable project that stands out above the rest is KEYS Token, a real estate-based cryptocurrency ecosystem running on Ethereum (ETH). KEYS has already launched its groundbreaking Meta Mansions NFT collection and has future plans for additional releases and a rental app, according to its product roadmap.

Plots are available as a part of the Meta Mansions collection, a luxurious residential community split up into 8,888 virtual NFT mansions within the proprietary KEYS Metaverse. Unlike other digital landscapes, the KEYS Metaverse is powered by Unreal Engine 5 and is being created through a $100 million partnership with Genius Ventures. The metaverse enables investors to generate active and passive cryptocurrency income by creating businesses, designing and selling assets and providing services, much like an entrepreneur would in the real world.

The benefits of holding KEYS digital real estate also extend beyond the digital realm, allowing investors to gain exclusive benefits on partner products and services and exclusive KEYS events that will be hosted both in the KEYS Metaverse and the physical world.

Therefore, as real life and digital residence become even more closely linked, KEYS Metaverse investors are given a new opportunity to diversify their investments and participate in building the next iteration of the internet.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.

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