Real estate transactions in the Metaverse are expected to reach a billion dollars this year. According to MetaMetrics Solutions, real estate transactions on four major metaverse platforms, which totaled $501 million last year, are expected to triple this year.
As reported by CNBC, real estate transactions in the Metaverse reached $500 million last year. Sales reached $85 million in January, and they’re expected to hit over $1 billion by 2022.
The Metaverse real estate market is predicted to increase at a compound annual rate of 31.2% each year from 2022 to 2028, according to Brandessence Market Research. If the market does reach $1 billion in value this year, the Metaverse real estate market will be worth around $6.7 billion by 2028.
Investors and corporations spend millions of dollars to purchase digital land in the early iterations of the Metaverse to bring commerce into this new terrain. According to a recent analysis by digital currency investment firm Grayscale, the Metaverse will soon be a $1 trillion economy for advertisers, developers, and artists.
How Much Does Virtual Land Cost?
At this time, the cheapest land parcels on The Sandbox and Decentraland were 3.69 Ethereum (ETH) tokens and 5,100 Decentraland (Mana), equating to $9,681 $13,413, respectively. However, parcels have sold for millions of dollars, and asking prices can be substantially higher.
It’s vital to remember that digital land might lose its value if the Metaverse from whom you purchased it collapses and goes down. If the next Snoop Dogg comes in next door, it may skyrocket. The underlying token of the platform is likewise linked to the land value. Because cryptocurrencies are volatile in general, the value of your home may vary as well.