The Strategist

Real estate sales in metaverses exceed $500M in 2021

02/02/2022 - 06:20

Virtual real estate sales in metaverses will exceed $500m in 2021, CNBC reported.

Sales of virtual real estate in the four major metaverses reached $501 million last year, CNBC reported, citing data from analysts at MetaMetric Solutions. This amount is accounted for by the "big four" companies: Sandbox, Cryptovoxels, Decentraland and Somnium. Apart from them, dozens of companies are selling virtual land, the channel notes.

There are a total of 268,645 plots of varying sizes on the four platforms. In December 2021, 166,464 Sandbox plots were sold for $12,700, with payments made in the Ethereum cryptocurrency., which has invested $16m in such real estate, plans to hold virtual fashion events and open retail shops in its metaverse.

The surge in sales was prompted by Facebook's announcement that it will rebrand and change its name to Meta to focus on developing its own metaverse, CNBC notes. According to MetaMetric, virtual real estate sales rose nearly nine-fold to $133 million last November after the news. 

Sales in January 2022 already surpassed $85 million. Analysts predict that at this rate, sales could reach nearly $1 billion in 2022. BrandEssence Market Research estimates that the meta-residential real estate market will grow 31% a year from 2022 to 2028.

At the same time, some experts call the virtual real estate market a financial pyramid, CNBC notes. Unlike conventional ones, it is easily created using code, so it can be "built" in huge numbers.