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The real estate market in the metaverse is projected to pass $5 billion by 2026. This is the prediction of the latest metaverse report by Technavio, a global market research firm. The report states that the rise will be fueled by the growth of the metaverse into a mixed reality environment, where people can take advantage of these spaces.
Metaverse Real Estate Market has the Potential to Grow Exponentially
Metaverse is getting popular day by day. For people, the Metaverse is almost about to enter their social lives, maybe even. A recent study produced by Technavio, a global market research firm, predicts 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 inhabit, taking annotations and decoding tags for different application-specific purposes.
The second reason is the popularity of cryptocurrencies, which will make it easier to buy and sell such properties and generate passive income for people.
However , the virtual real estate market is not as rosy as it seems . It seems like it will take a long time to adapt to the real world, since it has not yet found a place in the real real estate market and each virtual property has its own price. This makes things harder. The report states:
Virtual land price does not follow the pricing pattern of the physical world. Therefore, the value of digital assets, including metaverse real estate, would basically depend on how the buyers perceive their price, thereby leading to fluctuations.
These fluctuations can negatively impact the investments of companies and users interested in getting into these nascent instruments. Most of this proliferation will come from investors and companies in North America, with the region accounting for 41% of the investments made during the indicated period, also as a result of the high adoption of applications that include metaverse technology.