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Decentraland Land Valuations | How Much You Should Spend Buying Your First Digital LAND in Decentraland

I’ve bought and sold at least 100 properties since Decentraland distributed their LAND tokens which has made me understand a lot about Decentraland Land or Parcel Valuation.

Jump Straight to Land Valuations

I thought I’d make a dedicated blog post on Decentraland LAND valuation since the whole ‘How do you know how much lands are worth in Decentraland’ questions keep coming up by new investors.

First, it’s important to understand the history of Decentraland LAND tokens.

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The First Decentraland Terraform LAND Auction

A Really cool video to start with is this Timelapse of bids placed for each land. You can see which lands are worth a lot based off the auction.

On December 15th 2017, Decentraland held it’s first LAND auction.

At this stage, No one had any LAND, not even the developers. All interested investors needed to register with their Metamask wallet and were greeted with the Decentraland Map similar to what you now see on the marketplace but No lands were owned.

Each member had equal chance of ‘bidding’ on any land parcel they wanted.

If you wanted to place a bid, it would have looked like this,

 

Over the next few weeks people bid on lands against each other until the end of the auction where the people with the highest bids of each parcel were allocated the land.

All mana tokens used to bid on Decentraland were burnt, meaning they were destroyed/taken out of circulation. Over 90 Million Mana were destroyed.

Buying and Selling without the Marketplace – The Early Days

I only learned about the project when the auction was already over, (Sucks!!), but I was determined to get some LAND after I realised how big of a project this would be.

Over the course of the next few weeks I messaged pretty much everyone on rocket chat asking if they had land to sell.

I managed to get my hands on about 20-25 parcels between 2-4k mana each.

Pretty good. At that stage I didn’t care where, I just bought any land I could get my hands on. Back then the marketplace was not available so people had no idea what their Land’s were worth.

2-4k mana was about 3-500 USD. I was confident LAND will be worth more fiat in the future if I could get lands at this price since you benefit from both the Value of LAND going up and/or the value of MANA token going up. Double win!

The only way to buy or sell your land was to agree on a price with whoever you were buying or selling from and then do the deal manually. The buyer sends the MANA and seller sends the LAND token once receiving the agreed MANA.

Risky right?

But it worked. I did about 10-15 deals like this. Some people would make the trade with an admin present to minimise the risk. As far as I know, no one got scammed and overtime everyone would shoutout those that they successfully did a deal with so we knew who was trustworthy.

After a couple months of this the devs released the marketplace.

LAND Valuations after the release of the Marketplace – Present Times

The Marketplace opened the doors up for everyone listing their LAND. Finally we could all see what prices LAND were actually selling for and where the valuable locations seem to be.

After a few days there were hundreds of lands listed, mostly at stupid high prices. Over time, people that wanted to sell kept bringing their prices down till there was a sweet spot between buyers and sellers where both were happy with the prices.

After the creation of nonfungibles.com from one of our community members we could all see the actual prices lands were selling for!

What’s The Best Decentraland Lands and What Makes a Parcel Valuable?

If you’re a first time investor, you’re probably lost with buying a land in decentraland. Where to buy and why.

A few general rules,

  • The more closer to the centre, the more valuable
  • The rarer, the more valuable

How do we find out how rare a decentraland land is? You can find out by looking on the map.

This map doesn’t show the individual parcel pixels but if you can imagine this map/image made up of really tiny pixels/squares. Each square equals 10 x 10 metres in the actual world.

All the squares/parcels that are green are buyable and are classified as land.

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Touching Genesis Plaza

The most central lands are the ones touching centre genesis plaza. (The big white square in the middle). The Genesis Plaza is where community events and spawn points will be. The centre plaza is expected to have most people spawning from it hence the most traffic.

Anything touching Genesis Plaza is VERY Valuable. Especially those touching both genesis plaza and one of the 4 main roads branching out. These are prime positions.

Touching The Main Central Roads

The main roads that branch out from Centre Genesis Plaza are expected to have a lot of traffic walking out from the centre to the main districts and localities. These are quite rare and can also be quite expensive.

Up to about -50,50 is still considered quite central. Valuation drops once you’re out of this range.

Touching Other Genesis Plaza’s

Touching the other Genesis Plaza’s are also quite valuable. There’s not many of these parcels so eventually there will only be a handful of people owning these.

 

Other Parcels

The below section covers all parcel categories and the expected sell/buy price for them. Basically you want to  buy parcels that are touching roads, districts, plazas and anything else of value. These are the ones that will hold their value.

 

Current Land Prices

When the marketplace first released, there weren’t many lands under 10,000 mana back then and those that did list under 10,000 would mostly get gobbled up fast.

Now, there are plenty of lands under 10,000, even going as low as 5,500 at the time of writing this showing that Land prices are finding an equilibrium between buyers and sellers.

As of now, my experience continually buying and selling lands leads me to valuate the below Land Categories these prices.

This is when MANA is sitting at $0.12 – $0.15.

(lower bracket price usually further from centre, outer bracket is usually closer). All prices are in MANA

*All prices are based on monitoring buy/sales history for a period of 2 months and not counting any outliers.

*Also note these are general guidelines and depend on buyer and seller activity. Listing your land at this price obviously doesn’t guarantee a sale. I’ve had to wait for a week sometimes to sell.

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Immediate Sale – To sell your LAND quickly

(usually a little under market price so buyers will jump on it)

Touching Centre Genesis Plaza: 150,000 – 400,000

Touching Double Roads within -50,50 coordinates:  40,000 – 80,000

Touching Singular Roads within -50,50 coordinates: 15,000 – 40,000

Touching Other Genesis Plaza’s: 40,000 – 70,000

Touching Districts: 10,000 – 50,000, (Varies largely on District)

Touching Double Roads outside -50,50, (not including those touching districts): 15,000 – 30,000

Touching Single Roads outside of -50,50: 8,000 – 12,000

Not touching roads within 50,50: 8,000 – 12,000

Not touching roads but within 5 spots of districts: 7,500 – 12,000

Not touching roads outside of -50,50: 5000, 8,000

At the edges of Genesis City: 4,000 – 6,500

 

Long Term Listing Sale

(Waiting for the right buyer and still being a fair price)

Touching Centre Genesis Plaza: 500,000 – 2,000,000

Touching Double Roads within -50,50 coordinates: 100,000 – 300,000

Touching Singular Roads within -50,50 coordinates: 30,000 – 80,000

Touching Other Genesis Plaza’s: 80,000 – 200,000

Touching Districts: 20,000 – 100,000, (Varies largely on District)

Touching Double Roads outside -50,50, (not including those touching districts): 25,000 – 45,000

Touching Single Roads outside of -50,50: 10,000 – 20,000

Not touching roads within -50,50: 10,000 – 15,000

Not touching roads but within 5 spots of districts: 9,000 – 12,000

Not touching roads outside of -50,50: 8,000, 10,000

At the edges of Genesis City: 6,000 – 9,000

 

Again, these aren’t hard and fast rules, these are general observations I use when trying to buy and sell lands for profit. When I see lands for sale way under the ‘Immediate sale’ prices I buy and sell them back a little higher.

A profit of 2-3k mana is usually 3-500 USD!

When navigating around the marketplace you’ll find there are many types of sellers. Those that want to sell quick, (usually cheaper than nearby parcels), and those that don’t mind waiting a while, (usually way overpriced).

Will Decentraland have another LAND auction?

It has been mentioned that there will be another auction to sell off the rest of the lands that are currently unowned. But again, it will be a ‘bid against each other’ style so I’m not holding my breath for cheap lands.

Investment Dynamics

You can gain from both the fiat value of the token increasing and/or the value of the land increasing due to demand and scarcity. This makes for an interesting dynamic.

I’ve noticed, if the Mana token price increases quickly then people start selling their lands for low prices since they still make a fiat profit.

Eg, people that were listing their land at 10,000 mana when MANA was $0.10 don’t mind listing at 6,000 MANA if token price reaches $0.22.

10,000 x $0.10 = $1,000 USD

6,000 x $0.22 = $1,320 USD

I have diversified my portfolio with about 50% MANA tokens and 50% LAND so I can liquidate quick and every now and then make some money on the LAND sales.

It’s up to you to invest the way that you think is best.

Final Thoughts

Investing in Decentraland has been very profitable so far as you can increase your net worth by buying and selling your land instead of just sitting on tokens and hoping for the team to deliver.

I’ve been following the team for a long time and am convince in their honesty and ambitions. Not to mention a huge community on almost all channels that are commented to contributing in all ways possible.

I’ve noticed that as MANA token increases, LAND values in MANA decrease. People are happy to sell for less MANA as they need fiat to pay off bills or make real life payments.

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