The real estate market in the metaverse is projected to pass $5 billion by 2026. This is the prediction of the latest metaverse report by Technavio, a global market research firm. The report states that the rise will be fueled by the growth of the metaverse into a mixed reality environment, where people can take advantage of these spaces.
The Metaverse Real Estate Market Will Grow Exponentially
As the Metaverse becomes a more vivid and tangible breathing world, more and more people will be interested in being part of its social ecosystem. The real estate market in the metaverse is affected by this popularity. A recent study by Technavio, a global market research firm, predicts exponential growth in the value of this market.
The report, which also studies other factors related to this new market, estimates that the value of virtual real estate will grow by $5.36 billion by 2026. This expansion will be fueled by two factors. First, the metaverse will gradually move towards a more mixed reality experience, giving more value to these platforms in which visitors can inhabit, taking annotations and decoding tags for different application-specific purposes.
The second reason has to do with the popularity of cryptocurrencies, which will make this type of property more accessible and easy to buy to sell or rent, allowing its owners to earn passive income.
Market Challenges and Regional Leaders
However, not all is rosy for the virtual real estate market. It is still an insurgent sector that still has to find its place, as it is very different from the real world real estate market. Every virtual land will have its own price depending on several factors that are different from case to case. The report states:
Virtual land pricing does not follow the physical world pricing model. Therefore, the value of digital assets, including metaverse real estate, would basically depend on how buyers perceive their price, thus leading to fluctuations.
These fluctuations can negatively impact the investments of companies and users interested in getting into these nascent instruments. Most of this proliferation will come from investors and companies in North America, with the region accounting for 41% of the investments made during the indicated period, also as a result of the high adoption of applications that include metaverse technology.
Another report released last February estimated that real estate sales in the Metaverse would reach $1 billion this year.
