In the metaverse, the real estate market is expected to reach $5 billion by 2026. Technavio, a global market researcher firm, has predicted this in its latest metaverse report. According to the report, the rise of metaverse will be driven by the creation of mixed reality environments where people can benefit from these spaces.
The metaverse will become a more real, breathing, living world as more people are interested in being part of its social network. This popularity is affecting the real estate market in metaverse. Technavio, a global market researcher, has just released a study that predicts an exponential increase in this market’s value.
According to the report, virtual real estate’s value will increase by $5.36 trillion by 2026. Two factors will drive this expansion. The first is that the metaverse will slowly shift towards a mixed reality experience. This gives more value to the platforms visitors can inhabit. Second, they will take annotations and decode tags for different purposes.
The second reason is due to the popularity of cryptocurrency, which will make it more accessible and easier to buy this type of property in order to rent or sell, allowing its owners passive income.
Market Leaders and Challenges
The virtual real estate market is not all roses. This sector is still insurgent and needs to be found its niche. It is quite different from the real estate market. Each virtual land will have a different price, depending on many factors. According to the report:
The pricing of virtual land is not the same as that in the real world. The value of digital assets, such as metaverse real property, will depend on how buyers view their price. This can lead to fluctuations.
These fluctuations could negatively impact investments by companies and users who are interested in these new instruments. This proliferation will be mainly driven by North American investors and companies. The region accounted for 41% of all investments made during this period.
A second report, released in February stated that metaverse estate sales would hit $1 billion this year.
