Metaverse in Real Estate Market

Market Synopsis:

The global Metaverse in Real Estate market valued at USD 821.9 Milllion in 2021 and is projected to reach a value of USD 5953.6 Milllion by 2028 at a CAGR of 39.10% over the forecast period.

The term "metaverse" refers to a networked 3D virtual world in which digital and real worlds are blended together using cutting-edge technology such as Virtual Reality (VR) and Augmented Reality (AR) (AR). VR headsets, AR glasses, and smartphone apps are all used to access the immersive environment. Metaverse has the ability to transport individuals practically anywhere in the world while also allowing users to communicate digitally. Increased breakthroughs in metaverse technology have resulted in a substantial boom in the virtual real estate industry, with an increasing number of people paying astronomically high prices for virtual land parcels. Purchasing a plot of land or real estate in an uninhabited blockchain-based world permits people to own a portion of these digital worlds, where they can build anything they want. In the digital realm, users can buy and sell land with bitcoin and construct businesses, art galleries, workspaces, and showrooms.

Significant investments in virtual land and real estate within the metaverse, as well as an increase in the number of people and businesses making virtual purchases on metaverse platforms, are likely to drive market revenue growth over the projection period. Furthermore, an increasing number of firms are renting metaverse spaces and properties to construct storefronts, organize events for younger digital audiences, and develop virtual stores, all of which are contributing significantly to the market's revenue growth. In addition, as metaverse real-estate becomes more popular, current metaverse platforms are producing additional land and increasing parcel sizes, and this trend is projected to continue, contributing significantly to market revenue growth. Companies and celebrities are investing in metaverse platforms in order to establish a digital footprint in the virtual realm through virtual real estate developers and architects. Meeting locations for individuals from all over the world, the construction of digital buildings for commercial purpose, and rising aesthetic enhancements in metaverse real estate are all examples of metaverse architecture.

Market Segmentation:

The Metaverse in Real Estate market is segmented on the basis of Type, Technology, End Use and Component. On the basis of Type, the market is segmented into Buy Metaverse Real Estate, Sell Metaverse Real Estate and Rent Metaverse Real Estate. On the basis of End Use , the market is segmented into Individual Game Users and Virtual Real Estate Developers. On the basis of Component , the market is segmented into Hardware and Software.

Based on Type

Over the projected period, the buy metaverse real estate category is expected to generate the most income. This can be ascribed to an increase in investment in virtual world property and land, a rapid rise in virtual property values due to scarcity and increased desirability, and a growing number of firms and significant brands capitalizing on the metaverse real estate potential. Several companies and celebrities have also bought virtual plots in the metaverse, and this is a trend that is anticipated to grow rapidly in the future.

Based on End Use

Over the forecast period, the virtual real estate developers segment is expected to grow at a rapid pace. This is due to an increase in the number of metaverse platforms developing land parcels, an increase in the trend of acquiring plots of land, and an increase in the number of metaverse real estate agents who assist investors in finding the right metaverse parcels. An increasing number of businesses are purchasing and developing digital real estate and then leasing it to brands and businesses looking to expand their digital presence.

North America Dominates the Global Metaverse in Real Estate Market

North America region acquired the largest market share during the year 2021 with a share of 48.10%. Over the forecast period, North America is expected to account for the largest revenue share in the global market, owing to a growing base of gamers in the region, steadily increasing purchases of metaverse real estate, growing awareness of metaverse and related technologies, and a growing focus on developing advanced technologies. Furthermore, significant improvements in VR and AR platforms, as well as the availability of high-end devices at accessible rates, are likely to contribute to the market's revenue growth in the region. Market growth is being fueled by the growing presence of metaverse-based enterprises and significant technological companies in the region.