The real estate market in the metaverse is expected to surpass $5 billion by 2026. This is the forecast from the latest Metaverse report from Technavio, a global market research firm. The report states that the rise will be spurred by the growth of the metaverse into mixed reality environments and people’s ability to utilize these spaces.
The metaverse real estate market will grow exponentially
As the metaverse becomes a more living, tangible, breathing world, more people will be interested in becoming part of its social ecosystem. The real estate market in the metaverse has been affected by this popularity. A recentstudyprepared by Technavio, a global market research firm, predicts exponential growth in the value of this market.
The report, which also examined other factors related to this new market, estimates that the value of virtual real estate will grow by $5.36 billion by 2026. Two factors are responsible for this expansion. First, the metaverse will gradually move toward more complex reality experiences, adding more value to these platforms that visitors can inhabit by annotating them for different application-specific purposes and decoding their tags.
The second reason has to do with the popularity of cryptocurrencies. Cryptocurrencies make this type of property more approachable and easier to buy to sell or rent, allowing its owner to earn passive income.
Market Challenges and Local Leaders
However, not everything is rosy in the virtual real estate market. It is an up-and-coming field that still needs to find its place because it is very different from the real estate market. Every virtual lot will have its own price, depending on several factors that vary on a case-by-case basis. It is reported that.
The prices of virtual land do not follow the pricing patterns of the physical world. Thus, the value of digital assets, including metaverse real estate, will essentially depend on, and fluctuate with, how buyers perceive its price.
Such fluctuations could adversely affect the investments of companies and users seeking to enter these nascent devices. In addition, given the high adoption of applications involving metaverse technologies, most of this diffusion has come from North American investors and companies, which accounted for 41% of the investments made during the period indicated.
Another report released last February estimated that metaverse real estate sales will reach $1 billion this year.
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