Last Updated: 26 July 2022
During this slow and tedious bear market, hardly anyone talks about the metaverse anymore. This concept of a digital universe was very promising but interest in it is still falling. Yet a new study claims that the value of real estate in the metaverse will still rise considerably. Not only in the coming years but also now in 2022.
The value of digital real estate
A new study by British research firm, Technavio, investigated the real estate market in the metaverse. That is a market in which you can buy real estate in a digital world. Based on this new research, the bureau predicts that the value of this metaverse property market will rise considerably.
In the press release, which Technavio published on 22 July, the company states that the virtual real estate market in the metaverse alone will increase by more than $5.37 billion. 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 in the year 2026. For 2022, the agency still expects an increase of 90.74%.
According to Technavio, this growth is due to two different factors. A ‘mixed reality experience’ and the growing popularity of crypto. Although the latter point speaks for itself, the ‘mixed reality experience’ requires some explanation.
A mixed reality experience actually means that the evolution to virtual reality will create a more mixed reality. According to the agency, this will give extra 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 out 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, which leads to fluctuations,” the research says.
There are stories of digital real estate in Decentraland selling for EUR 2.1 million, but not every piece of land will be that expensive. The future will tell how much digital land will really be worth, but, so far, this study comes closest to a realistic estimate.