Have you been thinking of buying a real estate property in the Metaverse? The Metaverse race is real and better late than never. Now is the ideal time to get a mansion in the virtual world with prices rocketing and sales higher than ever and only expected to increase further.
In 2021, the Metaverse saw record-breaking investments of $500 million in real estate properties, according to MetaMetric Solutions. The majority of these sales were grabbed by four platforms that have made their name in the Metaverse for real estate properties.
This year, the month of January alone saw real estate transactions worth $85 million in the metaverse. Data analyzers predict that metaverse sales will most likely reach a sky-high number of $1 billion this year, twice the sales in 2021.
The Metaverse has been booming, especially in the last year. With the announcement of Mark Zuckerberg rebranding Facebook to Meta to jump into potential future opportunities, many people viewed this moment as their opportunity to join in.
Interestingly, real estate is the primary investment buyers are looking into in the Metaverse. Even celebrities like Snoop Dogg have made their own neighborhood in the Metaverse. Locations like these have garnered immense popularity, to the extent that the property next to Snoop Dogg’s sold for $450,000.
November 2021 was the peak of Metaverse real estate property sales, where the numbers boomed to a nine-fold spike of $133 million. Since then, the sales have gradually declined. However, they’re still significantly higher than January 2021’s. Despite the drop, the predictions by BrandEssence Market Research state that the Metaverse will grow at an astounding acceleration of 31% between 2022 to 2028.
Here’s the thing: while there are dozens of platforms working on real estate properties in the Metaverse, the “Big Four” dominate the market. They include Sandbox, Decentraland, Cryptovoxels, and Somonium.
Sandbox is clearly taking the lead with 62% of the 268,645 parcels in the Metaverse platforms being held by their company. It also has its own vision of developing islands and villas on its platform, which are being bought up at breakneck speeds, with 99 of 100 islands sold for $15,000 on the first day they went up on the market. The company is currently leading the market and expected to have 71% of the Metaverse real estate properties in 2022.
The second position on the Meta real estate market is held by Decentraland, with an average cost of $14,440 for their properties.
Several companies are climbing on board towards the shift to Metaverse platforms. For instance, the CEO of Republic Realm, Janine Yorio, states that there are tons of risks with the Metaverse due to a multitude of uncertainties, but taking these risks could mean big rewards. Furthermore, Yorio also said that MetaReal properties’ values have more to do with what is developed on the land rather than the location. But, that’s not entirely the case, as we’ve seen with Snoop Dogg’s neighboring properties.
Companies like Tokens.com and Kiguel are moving towards the meta shift by investing their funds in Metaverse land. Why is that so? The CEO of Kiguel states that their tactic is to attract the next generation that’s more interested in the virtual counterpart to real-life experiences.
Of course, not everyone is convinced by the idea of a parallel virtual dimension; many perceive it as another con that will slowly die out. However, companies and brands are adapting to it to boost sales by captivating the digital generation. For now, it is seen as do or die. Companies that want to remain relevant in the upcoming years will have to take the risk. And who knows? This shift could bring about a new form of business and a general livelihood the likes of which we would’ve never imagined.
