From 2021 to 2026, the metaverse real estate market is expected to grow by $5.36 billion, at a compound annual growth rate of 61.74%, driven by the growing popularity of mixed reality and cryptocurrencies, according to a report from global market research firm Technavio.
More virtual land acquisitions will be the next trend, as most major brands are using the acquired virtual land for advertising and other promotional purposes, the report says.
Uncertainty is one of the challenges for virtual real estate growth — the pricing of virtual land prices does not follow physical world patterns, but largely depends on the buyer view, leading to volatility and a slowed market.
The worldwide lockdown caused by Covid-19, forcing people to work from home, has increased the demand for VR/AR platforms, thereby accelerating the metaverse real estate market, the report says.
Metaverse real estate market share growth in the corporate sector will be significant, as corporate giants such as Nike, Facebook, and Microsoft all jump into the virtual world, the report says.