Analysts make optimistic forecasts for the virtual real estate market, whose annual growth rate may exceed 60% in the next four years.
Analytical company Technavio has provided a forecast of the virtual real estate market growth dynamics up to 2026. According to the researchers, the market will grow by an average of 62% annually, and the total growth rate over the next four years will be $5.36 billion.
The main growth drivers of the real estate market in the metaverse are the development of mixed reality (MR) technology, attention from major brands, and the growth of major land acquisitions in metaverses. The global crypto adoption, which makes buying virtual real estate for sale or leases a more affordable form of investment than buying real property, has a positive impact.
North American companies will account for 41% of all growth during the forecast period, analysts say. Apart from the U.S. and Canada, the report names China, Germany, and the United Kingdom as the key countries for market development.
However, the report’s figures differ slightly from those of other researchers. So, according to analysts from MetaMetric, the volume of virtual real estate sales in 2021 amounted to $0.5 billion, which is less than the figures presented in Technavio’s report. A study by McKinsey & Company also predicts a return on the metaverse sector projects at $5 trillion, but by 2030 and not only from virtual land sales.
Additionally, user behavior will change appropriately — Gartner analysts have found that if current trends continue, over 25% of humanity will spend at least one hour per day in the metaverse by 2026.
