The metaverse real estate market is expected to exceed $5 billion by 2026. This is the forecast contained in the latest metaverse report from Technavio, a global market research firm. The report states that the rise will be fueled by the growth of the metaverse in a mixed reality environment, where people can take advantage of these spaces.
Metaverse real estate market is growing steadily
As the metaverse becomes a tangibly breathing bioworld, more and more people will be interested in becoming a part of its social ecosystem. The real estate market in Metaverse is affected by this popularity. newly study Produced by Technavio, a global market research firm, it expects exponential growth in the value of this market.
The report, which also studies other factors related to this new market, estimates that the value of virtual real estate will grow by $5.36 billion by 2026. This expansion will be fueled by two factors. First, the metaverse will gradually move towards a more mixed reality experience, giving more value to these platforms in which visitors can reside, taking annotations and decoding tags for various application-specific purposes.
The second reason relates to the popularity of cryptocurrencies, which makes this type of property more accessible and easy to purchase for sale or rent, allowing its owners to earn passive income.
Market challenges and regional leaders
However, not everything is rosy for the virtual real estate market. It is still a rebellious sector that has yet to find its place, as it is very different from the real estate market in the real world. Each virtual land will have its own price depending on several factors that vary from case to case. The report stated:
The hypothetical land price does not follow the pricing pattern of the physical world. Therefore, the value of digital assets, including metaverse real estate, will mainly depend on how buyers perceive their price, which leads to fluctuations.
These fluctuations can negatively affect the investments of companies and users interested in getting into these emerging tools. Most of this diffusion will come from investors and companies in North America, where the region accounts for 41% of the investments made during the indicated period, also as a result of the high adoption of applications that include metaverse technology.
Another report released last February estimated that sales of metaverse properties will reach $1 billion this year.
What do you think of the expected growth in the metaverse real estate market? Tell us in the comments section below.
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