Real estate sales in the metaverse are on the rise and according to MetaMetric Solutions, reached over $500 million in 2021. With projections of up to $1 billion for 2022, can virtual real estate become yet another new asset class?
Some of the biggest platforms in the real estate metaverse are The Sandbox, Decentraland, Cryptovoxels and Somnium Space with The Sandbox dominating the market, with 62% of the available land on the four platforms.
For some, it’s a difficult concept to process. Virtual real estate is made from designated pieces of code which are partitioned into individual plots within certain metaverse platforms and made available for purchase as NFTs on the blockchain.
Skeptics are warning of the potential for Ponzi scheme and scams since the amount of virtual property is well, virtually limitless and so is the number of platforms that can offer it.
But with slumping cryptocurrency prices, investors are looking towards the metaverse for new opportunities, and the potential, especially for advertising where consumers will congregate virtually is attractive.
But the question remains that will be debated for the foreseeable future – what is the actual value of virtual property? With the physical housing market boom underway, is digital property worth considering?
