Metaverse Real Estate Sales Projected to Reach USD 5 Billion by 2026
The real
estate market in the metaverse is projected to reach USD 5 billion by 2026. The latest metaverse report by Technavio, a
global market research firm has estimated the growth. The report states that
the rise will be fueled by the growth of the metaverse into a mixed reality
environment where people can avail themselves of the opportunity of space.
Metaverse Real Estate Market to Grow Exponentially
As the
metaverse becomes a more living, tangible, breathing world, more and more
people will be interested in becoming part of its social ecosystem. The real
estate market in the metaverse will be affected by its popularity. A
recent study presented by Technavio, a global market research firm,
has predicted exponential growth in the value of the market.
The report,
which contains studies on several parameters related to this new segment,
estimates that the value of the virtual real estate market will grow to USD 5.36 billion by 2026. This expansion will be fueled largely by two
factors. The metaverse will gradually move towards a more mixed reality
experience, giving more value to the platforms in which visitors can
inhabit and decode tags for different application-specific purposes.
The second
reason is linked to the popularity of cryptocurrencies, which is likely to
facilitate the buying and selling of property in the metaverse. If this kind of
property is more approachable and easy to purchase, sell, or rent, it will
enable the owners to obtain a passive income.
Market Challenges and Regional Leaders
However, not
all is rosy for the virtual real estate market, as it is very different from
the real-world real estate market. Every virtual land will have a price
depending on several factors that are different from case to case. The report
states:
"Virtual
land prices do not follow the pricing pattern of the physical world. Therefore,
the value of digital assets, including metaverse real estate, would depend on
how the buyers perceive their price, thereby leading to fluctuations."
These
fluctuations can negatively impact the investments of companies and users
interested in getting into these nascent instruments. It is expected that most
of the investors and companies in North America could step in, with the region
accounting for 41% of the investments in the indicated period. It
could also be the result of applications that include metaverse technology.
Another
report released last February estimated that metaverse real estate
sales would reach USD 1 billion this year.
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