As crypto focused Metaverse worlds gain notoriety, virtual real estate is also expanding in its popularity. Across Sandbox, Decentraland and other verses, digital property sales are already part of a huge market.
Via CNBC, sales of virtual property are reaching an all time high. Additionally, the market is set to continue its accelerated rise throughout 2022, possibly doubling an already impressive revenue stream.
Metaverse Property Sales
According to investors and analysts, Metaverse real estate in 2021 accounted for $501 million in sales. Sales skyrocketed after Facebook, now Meta, announced its plans to enter The Metaverse last year.
After Facebook’s announcement, digital property sales increased to $133 million in November alone. The growth continued to expand throughout the end of 2021. However, sales started to slow down in January.
In January 2022, Metaverse land sales were reportedly worth $85 million. While lower than previous months, sales were a massive boost above January 2021’s equivalent, multiplying by over 10 times the previous year.
Projections point at a massive year ahead for Metaverse property sales. Via MetaMetric Solutions analysis, 2022 could result in as much as $1 billion being spent on virtual land. That growth will reportedly continue “at a compound annual rate of 31% a year from 2022 to 2028”.
Image via Reddit
The area of effect
Out of all of the current Metaverses, Sandbox rises above the rest as the most wanted virtual space. Compared to its contemporaries, The Sandbox makes up 62% of land sales. This aligns with the platform’s intense backing from major brands.
During 2021 alone, the platform saw support from brands such as Adidas, The Walking Dead, Warner Music Group, Atari and even Snoop Dogg. The support from major brands has led to a rise in virtual property sales. For example, a virtual land next to Snoop Dogg World sold for around $500,000.
The trend of Metaverses has even led to virtual estate agents. Virtual estate agent Republic Realm has spent $4.3 million on land that will be converted into 100 “Fantasy Islands”. These islands will feature fake villas and vehicles; they’re currently on the market for over $100,000.