As the metaverse evolves into a more tactile and living reality, an increasing number of individuals will be interested in becoming part of the social ecology it contains. In particular, this trend is expected to affect the real estate investment market in the metaverse.
A new study predicts that the value of this metaverse land market will continue to increase at an exponential rate, according to global market research conducted by Technavio published in a press release on July 22.
Indeed, the market research firm has identified that the value of virtual real estate in the metaverse is expected to increase by $5.37 billion by 2026.
This growth should be driven by two different factors. First, the metaverse will gradually shift to a more mixed reality experience. This will bring additional value to platforms that visitors can inhabit, where they can make annotations and decode tags for a variety of application-specific purposes.
Secondly, it has to do with the growing popularity of cryptocurrencies, which will make this form of property more accessible and simple to acquire to sell or rent, offering its owners the possibility of earning income from the rental or sale of the property.
Despite its many positive aspects, the virtual real estate market is not without its challenges. Due to the fact that it is so different from the real estate market in today’s world, it is still a fledgling industry that is still trying to find its footing.
Each virtual court will have its own pricing, which will be determined by a variety of criteria that vary from one to another. According to the study:
“The price of virtual land does not follow the price pattern of the physical world. Therefore, the value of digital assets, including metaverse real estate, would basically depend on how buyers perceive their price, thus leading to fluctuations.
These fluctuations can have a detrimental effect on the investments of organizations and individuals interested in entering into these new financial instruments.
The majority of this proliferation will come from investors and companies in North America, with the region accounting for 41% of investments made during the stated period. It’s also a direct result of the widespread acceptance of apps that use metaverse technology.
Interestingly, in May 2022, Finbold reported that Metaverse fans were paying $300,000 for virtual property instead of buying a real house.
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