Virtual Real Estate Sales Hit $500M in 2021 and are Expected to Double in 2022

NFT sales could reach up to $1 billion in 2022

Investors are rapidly snapping up land across the various metaverses and have spent a total of $501 million in 2021 to secure virtual land. Sales in the first month of 2022 have already reached $85 million, and if this pace continues, sales could reach up to $1 billion in 2022.

Virtual real estate has been hailed as an innovative and promising investment, similar to NFTs and cryptocurrencies. While investing in the metaverse can be risky, it can also prove to be very lucrative.

“[It] is very, very risky. You should only invest the capital that you are willing to lose. This is very speculative. It is also based on blockchain. And as we all know, cryptocurrencies are very volatile. But it can also be very helpful,” said Janine Yorio, CEO of virtual real estate development company Republic Realm.

According to Yorio, Republic Realm sold 100 virtual private islands for $15,000. They now sell for $300,000 each, which is about the price of an average US home.

The steady growth in sales increased dramatically when Facebook renamed it Meta and announced its intention to focus operations on the metaverse. Covid-19 restrictions may also have played a role in increasing global interest in virtual living. There are many things that users can do in the metaverse: visit museums and theme parks, go to a beach party or a nightclub, and even attend concerts of famous artists.

Market research by BrandEssence has shown that the metaverse real estate market could increase by 31% per year from 2022 to 2028.

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

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