In the metaverse, there is a $5 billion real estate market. This figure will be reached by 2026. Technavio is an international market research firm that has released the most recent metaverse report. According to the report, the increase will be driven by the transformation of the metaverse into mixed reality environments where people are able to take full advantage of them.
Metaverse Real Estate Market Grows Exponentially
The metaverse will become a living, breathing, and interactive world. More people will want to be part of the social network. Popularity is having an impact on the market for real estate in the metaverse. Technavio, which is a global market research organization, recently predicted an explosive growth in the market’s worth.
This report also examines other market factors. It estimates that virtual realty will reach $5.36 Billion by 2026. Two factors will drive this expansion. The first is that the metaverse will slowly shift towards mixed reality, which gives more value to platforms visitors can inhabit. Second, decoding tags and annotations for various purposes are also part of this expansion.
Second, cryptocurrency is becoming more popular. This will allow for easier and quicker purchase of this property to be rented or sold, thus allowing owners to earn passive income.
The Market Challenges of Regional Leaders
But not everything is perfect for virtual realty. Because it’s so different to the actual real estate market, this sector remains insurgent. Virtual land prices will vary from one case to the next. According to the report:
Prices for virtual land do not reflect the prices in the physical world. Accordingly, digital assets including metaverse property are valued based on what buyers see as their value, which could lead to fluctuations.
The fluctuations could negatively affect the investment of users and companies interested in investing in these emerging instruments. This proliferation will be mainly driven by North American investors. The region accounted for 41% in the investment made over the period.
According to another report published in February, metaverse real property sales are expected to reach $1Billion this year.
How do you feel about the projected growth in metaverse realty market? Leave a comment below.
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