Virtual real estate is the latest craze in the metaverse. Everybody and their dog wish to own at least a tiny piece of land in the virtual space. The Sandbox LAND scores a market cap of more than one billion dollars, which makes it one of the properties in top demand among buyers. Let’s see, though, how much money people are actually willing to pay for a plot. Here are a few tips by DappRadar that could help shed some light on this matter.

Before we estimate the value of land in the Sandbox, though, we need to understand what’s being traded here. LANDs are virtual plots of land, in the form of NFT real estate pieces in The Sandbox. Once they own these plots, buyers can unleash their creativity and invent countless ways of earning money with their properties, either by renting them out or by collecting them as passive income investments. LAND owners also can make use of their voting rights within the Sandbox.

The Value Of Land In Sandbox

image depicting The Value Of Land In the Sandbox

Location

Location is the ultimate detail that can make all the difference when it comes to the value of land in The Sandbox. As in real life, in The Sandbox there are areas that are more desirable than others. This is exactly why investors seek to bid on run-down properties in these valuable areas. They know their investment will be well worth it.

The best areas are the ones that boast entities you wish to be associated with such as areas with Sandbox-owned lands and plots covered by major brands. Being near these entities is a guarantee that you’ll experience a steady flow of traffic in the future. Just as shopping malls contribute to the increase of land value, virtual property shopping areas have the same effect on nearby plots.

Size

The size is the second thing that matters when it comes to investing in virtual real estate. Estate in the metaverse of The Sandbox is divided into four main size categories, small, medium, large, and extra-large. The larger the property, the higher the price. The reason behind this is that the larger your plot, the more things you can build on it.

XL estates, in size of 24x24m are usually the property of large brands such as Ubisoft, Warner Music Group, and Binance. Large ones belong to big brands such as Snoop Dogg, Adidas, and Care Bear. There are transactions with virtual real estate in the range of as much as 4 million dollars. One of the bets examples is Atari, a company that owns lots of virtual real estate plots, as well as digital land outside the Sandbox.

Utility

The value of The Sandbox as a whole is another factor that has a direct influence on the LAND worth. Even though it is not as valuable as Decentraland, LAND is still above most of their competitors. It’s worth mentioning here that people value utility and collaboration, and therefore they appreciate the fact that The Sandbox collaborates with tech, finance, gaming and other companies in dynamic and modern industries.