According to investors and analytics firms, metaverse real estate topped $500 million last year and could double this year. On four major metaverse platforms in 2021, real estate sales reached $501 million, according to MetaMetric Solutions. According to the metaverse data, sales could reach $1 billion in 2022.
BrandEssence Market Research reported that the metaverse real estate market is expected to grow at a compound annual rate of 31% a year from 2022 to 2028.
“There are big risks, but potentially big rewards,” said Janine Yorio, CEO of Republic Realm, a metaverse real estate investor and advisory firm.
Over a dozen platforms are now selling real estate in the metaverse, with new ones popping up every day. So far, real estate sales have been focused on the “Big Four” Sandbox, Decentraland, Cryptovoxels, and Somnium. There are a total of 268,645 parcels on the four platforms, all of varying sizes.
According to reports from Republic Realm, Sandbox dominates the market, with 62% of the available land on the four platforms. Does land matter? Some say it doesn’t, while others say it does.
“You can teleport anywhere, so location isn’t as important,” one person said.
But investors say that location is everything, just like in the real world. Imagine having real estate next to Gucci or any other major brand.
“We’re even talking to companies about putting up digital billboards in virtual conference rooms where people can meet,” Kiguel said.
Still, some people say metaverse land is just the latest iteration of the crypto Ponzi scheme, trying to lure people into investing in metaverse real estate. What are your thoughts on Metaverse real estate land?
