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 now even makes it possible to buy property in the virtual world.
Who can buy?
Anyone can invest in properties in the Metaverse, which allows people to get partial ownership if the costs are high.
“It also opens up the world of real estate investment for less wealthy individuals. From corporate boardrooms and mainstream media to homes, discussions about Web3 abound,” says Abhijit Shukla, CEO of Tarality, a blockchain company.
For example, if a person cannot afford to buy a $250,000 condo in Metaverse, the person can opt for shared ownership. It will also allow the person to trade for a corresponding fraction of another property at any time.
He adds that turning real estate into tokens allows investors to use tangible assets to create easily liquid portfolios on a blockchain.
How can you buy?
Currently, the best way to access Web3 is through your browser. Investors can buy land in the Metaverse platforms Decentraland (MANA) and Sandbox. If you want to invest in Decentraland, you can invest in MANA coins. “The investor can either go directly to the platforms to purchase property or visit the open NFT marketplaces where virtual, metaverse properties may have been listed. The user must connect their Web3 wallets to the platforms to make the purchase. Once the transaction is approved, the property is transferred to the investor’s wallet, says Ankitt Gaur, CEO of EazyFi, a Layer-2 Defi lending Protocol Network.
“Just like accessing Web3, to buy land in either Decentraland or Sandbox, a crypto wallet becomes essential for the investor,” says Shukla.
One must first set up an Ethereum wallet like MetaMask which will act as the metaverse login key. “Visit the Decentraland or Sandbox websites and connect to your wallet to login and get digital land using tokens that can be purchased with a credit card,” adds Shukla.
How Web3 is transforming the real estate industry
Web3 is transforming the real estate industry in countless 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 – using Web3 technologies such as smart contracts, NFTs and blockchain,” said Tarun Sainani, CEO of HouseEazy, a buy-to-let platform and sale of houses.
He says that such online transactions are already done abroad, where payments are settled through cryptocurrency. According to a survey by Redfin, a real estate brokerage firm, 11.6 percent of first home buyers used their crypto funds to secure down payments.
Says Sainani, “While India may be on the cusp of digital transformation, for the real estate industry, the writing is on the wall for the traditional systems as new age businesses penetrate the market and make transactions easier and seamless for consumers.”
The user-centric, data-driven nature of Web3 offers limitless opportunities in real estate marketing, experts say.
