📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Sales of Virtual Real Estate Reached $500 Million in 2021 and Are Expected to Double in 2022

Published 02/03/2022, 04:00 AM
Updated 02/03/2022, 04:30 AM
Sales of Virtual Real Estate Reached $500 Million in 2021 and Are Expected to Double in 2022
MSFT
-
META
-

Investors are rapidly purchasing land in a variety of metaverses and spent a combined total of $501 million in 2021 to obtain virtual plots of land. Sales in the first month of 2022 have already reached $85 million, and if this pace continues, sales could reach up to one billion dollars in 2022.

Virtual real estate has been received as an innovative and promising investment, similar to NFTs and cryptocurrency. Although metaverse investments can be risky, they can also prove to be very rewarding.

“[It’s] highly, highly risky. You should only invest capital that you’re prepared to lose. It’s highly speculative. It’s also blockchain-based. And as we all know, crypto is highly volatile. But it can also be massively rewarding,” Janine Yorio, the CEO of virtual estate development company Republic Realm, told CNBC.

According to Yorio, Republic Realm sold 100 virtual private islands for $15,000. Now they’re sell for $300,000 each, the price of an average home in the U.S.

The steady increase in sales really soared when Facebook (NASDAQ:FB) rebranded to Meta and announced its intention to focus operations on the metaverse. Covid-19 restrictions may also have played a part to spark global interest of virtual life. In the metaverse, there are many things users cane do: you can visit museums and themed attraction parks, go to a beach party, or nightclub, and even attend concerts of famous performers.

As reported by CNBC, BrandEssence Market Research found that the metaverse real estate market could seen an increase of 31% per year from 2022 to 2028.

Currently, the top metaverses are The Sandbox, Decentraland, Cryptovoxels, and Somnium.

On the Flipside

Major tech companies, such as Meta and Microsoft (NASDAQ:MSFT), are putting millions into the metaverse, and the future of the internet seems to be leaning towards the metaverse’s development. Yet the investment is risky. “You’re buying something that isn’t tied to reality,” said Mark Stapp, professor of real estate theory and practice at Arizona State University.

EMAIL NEWSLETTER

Join to get the flipside of crypto

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

[contact-form-7] You can always unsubscribe with just 1 click.

Continue reading on DailyCoin

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.