Properties in the metaverse are selling like hot cakes. Transactions are counted in millions of dollars

Metaverse real estate transactions exceeded $ 500 million in 2021. The real boom came after Facebook announced its name change to Meta and announced plans to create a virtual world.

Interestingly, it was not the giants that were responsible for most of these transactions, but smaller companies such as Decentraland, Sandbox, Cryptovoxels, and Somnium. Sandbox was associated with approximately 75% of the properties sold, followed by Decentraland. The prices of these properties are constantly rising – suffice it to mention that in recent months they have jumped by up to 500 percent.

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The aforementioned Sandbox dominates the real estate market in the metaverse. It has 62% of the available land on four platforms and a virtual room for 166,464 plots of 96 square meters. In turn, Decentraland has 90,600 plots of 16 square meters. In the first case, the price was $ 12,700 per plot, and in the second – $ 14,440.

Real estate transactions in the metaverse exceeded $ 500 million last year

Virtual real estate companies are usually linked to the cryptocurrency market, blockchain and NFT technologies. Why buy such plots at all? In the future, they could be used to organize virtual events in the metaverse. This seems quite ridiculous as we are talking about a virtual world and not actual real estate. It does not change the fact that the popularity of this type of investment is growing, and the villas sold by the Republic Realm and known as Fantasy Islands, which initially cost around $ 15,000, are now worth 6-7 times as much.

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This upward trend is expected to continue for many years to come. Experts expect sales to double to more than $ 1 billion in 2022. In turn, in 2028 there will still be increases – this time at a rate of 31 percent per year.