The growth of Metaverse real estate has an estimate $5Bn prediction.
There is a thriving real estate system going on within the metaverse. Multiple projects have seen some real growth within the sphere and more are coming in the future. Projects such as Decentraland, The Sandbox, Portals, Upland, Enviro, Solice, and many more have seen the sales of their digital space or “plots” continue to grow.
The digital real estate market is on fire at the moment and there is a prediction of the market surpassing $5 Billion by 2026 by global research firm Technavio which predicts an exponential growth of the market.
The report studied other factors to come up with this conclusion such as sales trends, blockchains and project utilitiy, and estimated that the value of digital real estate would grow to about $5.36 billion by the year 2026. Factors that contributed mostly to this evaluation were the fact that the metaverse will be a mixed-reality offering, meaning accessible through VR, AR, and web3 which will offer more ways for users to interact with and inhabit the spaces. Another factor would be crypto.
The popularity of digital assets has grown even more over the years as a decentralized finance system seems more attractive than the current centralized system of big banks.The passive income offered by crypto and NFT projects is also a big draw into the space.
Digital real estate is not like traditional real estate. The plots all have different price points due to the “location” of the plot , what company,project, or celebrity is next to the offered location, and the rarity of the plot. The footing of digital real estate has not fully been found at the moment and thus it is still a very insurgent sector. The pricing of virtual land does not follow the pricing of the physical world and thus the cost of land in a digital space is mostly dependent upon fluctuations in value beliefs.
The fluctuations and lack of structure can make some investors and companies lose interest in purchasing. Most of the purchasing and proliferation will come from companies and investors in the United States as according to the report the nation Will account for 41% of the investments during that period. In another report the estimated amount of the technology was valued at $1Bn by another report.