![\"\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2022\/01\/AdobeStock_387159173.jpeg\")
<\/a>Photo: Adobe Stock<\/em><\/p>\nVirtual real estate transactions have begun emulating their brick-and-mortar counterparts with the introduction of metaverse mortgages.<\/p>\n
Vancouver-based TerraZero Technologies<\/a>, a self-described \u201cvertically-integrated metaverse technology company,\u201d recently provided the first metaverse mortgage to buy virtual real estate in Decentraland.<\/p>\n \u201cAn entirely new economy is emerging and we want to offer entrepreneurs and others similar products and services for the metaverse that are available to them in the real world,\u201d said TerraZero CEO and founder Dan Reitzik.<\/p>\n TerraZero serves as a mortgage broker for virtual land listings, offering information about size and location. Interested investors can take out a mortgage and TerraZero will provide them with \u2018deployment rights\u2019 to build on the land, organize events and run digital storefronts, making monthly payments until the mortgage is paid off and the virtual plot is transferred to the owner.<\/p>\n <\/p>\n Metaverse mortgages are an intriguing development that could signal increased growth of the virtual world.<\/p>\n \u201cMortgages and financing availability will expedite the development and adoption of the metaverse, and we are excited to be at the forefront of this new and exciting economy,\u201d said Reitzik.<\/p>\n Virtual worlds such as Decentraland<\/a> and The Sandbox<\/a> allow users to meet and communicate as digital avatars. Cryptocurrency and non-fungible tokens (NFTs) are the primary method for completing transactions in the metaverse, and virtual real estate has recently become a hot commodity.<\/p>\n To ensure digital real estate has value, supply is limited. For example,\u00a0Decentraland\u00a0is made up of 90,000 pieces or \u201cparcels\u201d of land, each measuring 52.5 square feet. According to CNBC<\/a>, virtual property prices have increased by as much\u00a0as 500 per cent\u00a0since Facebook\u2019s transition to Meta, and some virtual plots have become as expensive as a real-world house.<\/p>\n In November 2021, a subsidiary of Toronto-based Tokens.com called the Metaverse Group,\u00a0bought a plot of 116 parcels in Decentraland\u2019s fashion precinct for\u00a0a then-record-setting US$2.4 million. The space will be used to host digital\u00a0fashion events\u00a0and sell virtual clothing for avatars.<\/p>\n \u201cFashion is the next massive area for growth in the metaverse,\u201d Sam Hamilton, head of content at the Decentraland Foundation, said in a statement. \u201cSo it\u2019s timely, and very exciting, that Metaverse Group has made such a decisive commitment with this land purchase in the heart of Decentraland\u2019s fashion precinct.\u201d<\/p>\n The following week virtual land developer Republic Realm established a new record, buying a plot of land in The Sandbox for US$4.3 million from video game company Atari SA.<\/p>\n While prime real estate in the physical world is based on distance, the value of real estate in the virtual world is measured by traffic, which is why developers are working to create events that draw people in.<\/p>\nVirtual real estate heating up in the metaverse<\/strong><\/h3>\n
Measuring virtual real estate\u2019s value<\/strong><\/h3>\n