During this slow and tedious bear market, almost nobody talks about the metaverse anymore. This concept of a digital universe is very promising, but the interest in this is still falling – according to Google Trends. Yet a new study claims that the value of real estate in the metaverse will rise substantially. Not only in the coming years, but also now in 2022.
The value of digital real estate
A new study by the British research firm Technavio investigated the real estate market in the metaverse. Based on this new research, the firm predicts that the value of this metaverse land market will increase significantly.
In a press release, Technavio published on July 22, states that the virtual real estate market alone will increase by more than $5.37 billion in the metaverse. That is currently more than 1% of the entire value of all bitcoins ($420 billion).
The real estate should reach this value of $5 billion by the year 2026. For 2022, the agency still expects an increase of 90.74%.
But why then?
This growth, according to Technavio, has to do with two different factors. A ‘mixed reality experience’ and the growing popularity of crypto. While the latter point is self-explanatory, the ‘mixed reality experience’ requires some explanation.
A mixed reality experience basically means that the evolution to virtual reality will create a more mixed reality. This, according to the agency, will give additional value to the metaverse. ‘People who have access to metaverse platforms can buy the real estate land, and they can sell it or rent it to others,’ Technavio explains.
How expensive will something like this be?
Although you cannot say for sure how expensive such a piece of digital land will be, it can vary a lot. “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 essentially depend on how buyers perceive their price, leading to fluctuations,” the study reads.
There are stories of digital real estate in Decentraland selling for 2.1 million euros, but not every piece of land will be that expensive. The future will tell how much digital land will really be worth, but this research comes closest to a realistic estimate so far.
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