Web3 is considered the next iteration of the internet - a digital space that we can enter using Virtual Reality (VR) or Augmented Reality (AR) technology. It is now even making it possible to buy real estate in the virtual world.
Who Can Buy?
Anyone can invest in real estate properties in the Metaverse, which allows people to acquire part ownership if the cost is high.
"It also opens up the world of real estate investment to less wealthy individuals. From corporate boardrooms and mainstream media to housing, discussions of the Web3 go abound,” says Abhijit Shukla, CEO of Tarality, a blockchain company.
For example, if an individual can't afford to buy a $250,000 apartment in the Metaverse, the person can opt for part ownership. It will also allow the person to trade for an equivalent fraction of another property at any time.
He adds that turning real estate into tokens allows investors to use concrete assets to create readily liquefiable portfolios on a blockchain.
How Can You Buy?
Currently, the best way to access Web3 is through the in-browser. Investors can buy land in Metaverse platforms Decentraland (MANA) and Sandbox. If you want to invest in Decentraland, you can invest in MANA coin. “The investor can either go directly to the platforms to purchase property or visit the open NFT marketplaces where virtual, metaverse properties might have been listed. The user needs to connect their Web3 wallets to the platforms to make the purchase. Once the transaction is approved, the property ownership is transferred into the wallet of the investor,” says Ankitt Gaur, CEO of EasyFi Network, a Layer-2 Defi lending Protocol.
"Much like accessing Web3, to purchase land in either Decentraland or Sandbox, a crypto wallet becomes imperative for the investor," says Shukla.
One must first set up an Ethereum Wallet like MetaMask that will serve as the metaverse log-in key. "Simply visit the Decentraland or Sandbox websites and connect the wallet to log in and obtain digital land using tokens that can be purchased with a credit card," Shukla adds.
How Is Web3 Transforming The Real Estate Industry
Web3 is transforming the real estate industry in innumerable ways. Unlike the traditional home buying process, which involves a never-ending documentation process and legal hassles, Web3 offers buyers a click-and-close experience.
"A seamless transfer of real estate assets is now possible for all stakeholders--buyer, seller, and agent–with the help of Web3 technologies like smart contracts, NFTs, and blockchain," says Tarun Sainani., Co-Founder of HouseEazy, a platform for buying and selling houses.
He says such online transactions are already being done abroad, where payments are settled through cryptocurrency. According to a survey by Redfin, a real estate brokerage firm, 11.6 per cent of first home buyers tapped into their crypto funds to secure down payments.
Sainani says, "While India might be at the cusp of digital transformation, for the real estate industry, the writing is on the wall for the traditional systems, as new-age companies penetrate the market and make transactions easier and seamless for the consumers."
The user-centric, data-driven nature of Web3 offers limitless opportunities in real estate marketing, say experts.