Global Metaverse in Real Estate Market Share Expected to Reach $5.37 Bln by 2026
The global metaverse in the real estate market share is predicted to jump to $5.37 billion by 2026 at an accelerating compound annual growth rate of 61.74%.
A report published by TechNavio, a pioneering market research company, said the market share is dominated by few players. The metaverse market is segmented by end-user, including individuals and enterprises.
The report offered information about key players in the market like Axis Infinity, Cryptovoxels, Decentraland Foundation, Linden Lab, and ShibaLand LLC.
Enterprises will be the biggest contributor to the real estate market in the metaverse by 2026. The report expected that the metaverse real estate market will flourish following the entry of large giants like Microsoft, Nike, and Facebook in the virtual world.
Regarding its geography, It focused on the Middle East and Africa, Europe, North America, South America, and Asia-Pacific. North America will make up 41% of the market’s growth in the mentioned period.
According to the report, two main factors drive the metaverse in the real estate market, including the increasing popularity of cryptocurrencies and mixed realities. The wide and growing application of cryptocurrencies such as bitcoin, and Litecoin in buying digital assets boosts interest in end-users, particularly enterprises.
In addition, the evolution of VR technology will help the metaverse users to buy, sell or lease real estate land to others.
However, Technavio referred to challenges that the metaverse growth faces, topped by the uncertainty of the price of the real estate on the metaverse. The price of virtual land on the metaverse is determined by the scarcity and location of the land. The report clarified that the correlation between the price of the virtual land and these factors is in doubt because the virtual land price does not follow the physical land pattern.
It depends on the buyers’ understanding of the real value of the virtual land, therefore the value is exposed to fluctuations.
Get emerging technology updates delivered straight to your inbox
We'll email you 1-3 times per week-and never share your information
Whether you want to learn about NFT, Blockchain, Web3.0, Metaverse, or any other emerging technologies, we have the vital resources that will enlighten and help you make an informed decision.