By 2026, it is anticipated that the metaverse real estate market will reach $5 billion. The most recent metaverse analysis from international market research company Technavio makes this prediction. According to the paper, the rise will be propelled by the metaverse’s development into a mixed reality setting where people can utilize these areas.
More people will be drawn to joining the metaverse’s social ecosystem as it develops into a more vibrant, real-world environment. This popularity has an impact on the metaverse’s real estate market. The value of this market is expected to increase exponentially, according to a new analysis by the international market research company Technavio.
The analysis, which also examines other aspects of this emerging business, predicts that by 2026, the market for virtual real estate would be worth $5.36 billion more. Two things will drive this expansion.
The metaverse will first progressively transition to a more mixed reality experience, increasing the value of these platforms where users can inhabit and make annotations and decode tags for various application-specific uses.
The popularity of cryptocurrencies is the second factor, which will make this type of property more reachable and simple to buy in order to sell or rent, allowing its owners to generate a passive income.
The market for virtual real estate is not without its challenges, though. Since it differs greatly from the real-world real estate market, it is still an insurgent industry that needs to establish itself. Each virtual land will have a unique price based on a number of variables that vary from instance to case. The study claims:
“Virtual land price does not follow the pricing pattern of the physical world. Therefore, the value of digital assets, including metaverse real estate, would basically depend on how the buyers perceive their price, thereby leading to fluctuations.”
These fluctuations may have a negative effect on the investments made by businesses and users who are considering using these new instruments. The majority of this proliferation will come from investors and businesses in North America, which will account for 41% of all investments made during the specified period due to the region’s significant adoption of metaverse-based applications.
Another study, published in February of last year, predicted that this year’s metaverse real estate sales will total $1 billion.