The value proposition of virtual land works similarly to the real world. High-value properties are often near shops and activities, in which people will pay higher rent to live by.
Of course, the value of virtual land only increases if areas develop and people get involved in the metaverse. This prospect is why there are many skeptics of such an investment. The millions of dollars worth of investments into virtual land is all a risk, but it’s not an unfounded one.
After all, celebrities and stars are buying virtual land for all sorts of reasons. Some celebrities, like Snoop Dogg, are buying land to get ahead of the trend or because they think it’s fun. Others, such as the Winklevoss Twins, invest in land for educational purposes — to build exhibits that teach others about crypto and the metaverse as a whole.
From there, fans have the opportunity to buy metaverse properties next to their favorite stars and will pay top-dollar to do so. Those interested in virtual real estate investing are betting on the possibility of their land becoming more valuable over time, hence their bullishness toward virtual land as a whole. If you’re wondering why some believe metaverse is the biggest investment opportunity, appreciation in land value is one of them.
In fact, in some realms such as PolkaCity, property owners are earning passive income through annual interest rates. Unfortunately, to some, passive income isn’t a feature in all metaverse projects, and it’s always a risk to invest in an asset expecting profits later on. This variety of income methods is all the more reason to do in-depth research before investing.
Source: https://cointelegraph.com/explained/why-real-estate-investors-are-going-crazy-over-virtual-lands