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Metaverse Real Estate Market

Metaverse Real Estate Market Size, Share & Trends Analysis Report

Metaverse Real Estate Market Size, Share & Trends Analysis Report By Component (Hardware, Software), By End-User (Commercial, Residential) Based On Region, And Segment Forecasts, 2022 - 2028

Published
Report ID : BMRC 1818
Number of pages : 300
Published Date : Nov 2022
Category : Technology And Media
Delivery Timeline : 48 hrs
Single User : $3250

Corporate User : $7999

The Global Demand for Metaverse Real Estate Market, in terms of revenue, was worth of USD 358.0 million in 2020 and is expected to reach USD 3600 million in 2025, growing at a CAGR of 45.2% from 2020 to 2025.  

Global Metaverse Real Estate Market Size, Trends, Competitive, Historical & Forecast Analysis to 2022-2028, Soaring popularity of metaverse real estate across the globe, and rising inclination towards NFTs in the metaverse environment are some of the major factors driving the growth of Global Metaverse Real Estate Market.

Scope of Global Metaverse Real Estate Market:

Metaverse real estate is a parcel of land in the virtual world. Real estate in Metaverse is an expensive business just like in the real world, where prices are based on location, population, and the ratio of demand to supply. Virtual reality platforms have programmable spaces where people can get together, play games, sell NFFTs, attend meetings, go to virtual concerts, and perform countless other virtual activities.  

Due to the impact of Covid-19 on digital-based economies and disruptions to offline business models, the metaverse is experiencing its greatest momentum internationally. The rise of blockchain, digital assets, and non-fungal tokens (NFTs) has further fueled the demand for metaverse real estate. For example, in 2021, the real estate sales on the four major metaverse platforms Sandbox, Decentraland, Cryptovoxels, and Somnium—reached approximately USD 501 million. People began spending more time online during the COVID-19 epidemic, which boosted virtual real estate. A number of developed countries have shown exponential growth in the Covid 19 pandemic. Whereas emerging countries across the world are showing their courtesy towards digital land in the metaverse. For example, in India and China, masses of developers are trying to get big brands to join the city and showcase their products.  

Additionally, over the past two to three years, the real estate index has risen 75 percent, making it the second-best performing sector index. Despite the epidemic, the industry is resilient and growing steadily in 2021. During the initial wave of Covid-19, the neighborhood was indeed congested for a while. However, the market began to pick up speed in the fourth quarter of 2020, especially as demand for residential space surged. As the neighborhood began to recover, the second wave of Covid-19 arrived. Unlike the first wave, the second wave had a shorter and less pronounced impact on the region. Recently, the metaverse is booming due to the technological advancement and adoption of the virtual world. Investors have invested millions of dollars on land in Metaverse over the last few years. Furthermore, a variety of companies provide various types of metaverse real estate platforms.  

By considering all the points in mind, the numerous market players are pouring millions into the manufacturing of different types of metaverse real estate. Social sites provide flexibility to consumers and offer an opportunity to the metaverse real estate industry. Companies such as Cryptovoxels, Somnium Space, Decentraland marketplace, Axie Infinity, Sandbox, and many more platforms provide and prove diverse types of metaverse real estate. For example, Atari owns virtual assets in both Decentraland and The Sandbox, a metaverse platform where visitors can play Atari-themed games and participate in branded events, with plans to expand digital gaming opportunities across the board. Apart from this, HSBC is the first global bank to enter The Sandbox metaverse, joining a swath of other big brands including Warner Music Group, Gucci and Adidas. These innovations, mergers & acquisitions, as well as product launches, have hugely contributed to the growth of the metaverse real estate market across the world and immensely produced lucrative opportunities in the forecast period.

Global Metaverse Real Estate Market Segmentation:

The Global Metaverse Real Estate Market is segmented on the basis of component, end-use, and region & country level. Based on components, the metaverse real estate market is divided into hardware and software. Based on end-use, the metaverse real estate market is divided into residential and commercial.

By Component:

  • Hardware
  • Software

By End-User:

  • Commercial
  • Residential

The regions covered in global Metaverse Real Estate market report are North America, Europe and Asia Pacific. On the basis of country level, the market of global Metaverse Real Estate is sub divided into U.S.A, Canada, Mexico, Germany, France, Russia, Spain, China, Japan, and India.

Key Players for Global Metaverse Real Estate Market Report:

Some of the key players for the metaverse real estate market across the world are:

  • Axie Infinity
  • Cryptovoxels
  • Decentraland Foundation
  • Linden Lab
  • ShibaLand LLC
  • Somnium Space LTD.
  • SuperWorld Inc.
  • TandB Media Global Thailand Co. LTD.
  • The Sandbox
  • The Voxel Agents
  • Tokens.com
  • Uplandme Inc.

News: T&B Media Launched 'Translucia' Metaverse, a Virtual World, Partnering with MQDC in Property -- a New World First

On September 30th, 2021; T&B Media Global (Thailand) planned to invest 10 billion baht to launch the Translucia metaverse, the first imaginative virtual world in Thailand, with property developer Magnolia Quality Development Corporation (MQDC). Translucia's first partner is MQDC, which plans to develop projects in the metaverse. MQDC is the first property developer to use Translucia. It plans to develop a city in this virtual world as it prepares to create a new entity, MQDC Metaverse, responsible for urban development and virtual real estate projects.

Superworld & Tokens.com To Form Strategic Metaverse Partnership

On January 14th, 2022; The virtual world platform SuperWorld has partnered with Metaverse Group, a subsidiary of publicly traded company Tokens.com, who will bolster their metaverse presence by investing up to USD $1 million on SuperWorld’s virtual real estate platform. The partnership diversifies Metaverse Group’s eight figure portfolio, with investment focusing on virtual real estate that encompasses historically and culturally significant locations, along with landmarks and newsworthy sites where creative projects, entertainment and future events will be hosted by Metaverse Group.

Virtual Plot worth $4.3 Million Sold On Metaverse

On December 11th, 2021; the virtual land was acquired by a developer from the video game company Atari. The metaverse archived just to retain breaking themselves. A plot of virtual real estate was just sold for nearly USD 4.3 million in The Sandbox, creating it the most expensive metaverse property sale as of December 8, 2021. In accordance with the Wall Street Journal, the virtual land was attained by the developer from Atari, which is one of the leading video game companies.

Analyst Comment, “With more sophisticated technology and massive investments in the metaverse real estate will result in auspicious growth for the market during the forecast period”. 

Global Metaverse Real Estate Market Dynamics:

Increasing investment in metaverse real estate market and growing popularity among the population are some of the major factors driving the market growth. Metaverse real estate is the latest buzzworthy investment right now which is hugely gaining popularity all over the world. Number of players fully intend to generate spaces like virtual malls and other rentable properties. The concept of metaverse real estate captured the hearts and minds of nearly 70% of Americans. As, the masses of metaverse real estate platforms, like Decentraland, Sandbox and many others are available nearby the world. For example; Metaverse Group, one of the first companies to get into the digital real estate business operated a virtual world called Decentraland. Token.com announced that on average 116 parcel estates were sold for the equivalent of about USD 2.5 million. As well as, on December 8th, 2021, The Sandbox platform trading in virtual real estate has about 2,182 sales in a week. Further, Decentraland has approximately 339 total sales of metaverse real estate. Real estate in the metaverse is an amazingly speculative investment and hence gaining huge opportunities in this digital realm. Consequently, this factor is intensively flourishing the growth of the market for metaverse real estate across the globe.

In addition, the enormous inclination towards NFTs in the metaverse real estate environment is another aspect that is augmenting the evolution of the market. For example; the data from the platform NonFungible.com indicated that there has been across USD 300 million in NFT sales in December 2021. Of that total, nearly a quarter has been for digital land in The Sandbox metaverse. Also, on January 4th, 2022, PwC bought virtual land NFT in the Sandbox's metaverse. Apart from the aforementioned points, in 2020, throughout an online auction, there was a digital artwork that sold for on an average five hundred thousand USD. It was the first NFT digital house sold and was a landmark moment in NFT technology. This sale marked the start of the craze around virtual real estate NFTs. The metaverse is an immersive virtual reality experience of the internet that uses NFT technology to pay and own items online. As a result, NFT is playing a vital role in the real estate platform of the metaverse which is further pushing courtesy of millions of people towards it. Hence, soaring demand of NFTs in metaverse land is more expressively booming the market for global metaverse real estate.

However, high cost of metaverse real estate and lack of awareness especially in emerging countries which may hamper the market growth. As, Sandbox's top seller, LAND #48766, was sold for around USD 57,171.00 or Decentraland's top seller, EST #1965, for almost USD 758,250.00. This may pessimistically affect the metaverse real estate market all over the world. Despite this, technological advancements in terms of security in devices and improved user security & high confidence among users can provide massive opportunities for the further growth of the global metaverse real estate market.

Trends: -  

Real estate sales are flourishing in the metaverse as a number of investors are paying millions of dollars. Some plots in metaverse can be over 4 million and there are some plots available at affordable prices. Furthermore, some of the top metaverse projects attracting real estate are Sandbox (SAND), Axie Infinity (AXS), Descentraland (MANA), Enjin (ENJ), etc. In addition to the above, there are plenty of metaverse projects led by gaming companies like Atari and Roblox. While a lot of plots are available on different meteors, the most famous Descentraland meteors project is divided into 90,601 plots and the sandbox is divided into 166464 plots.  

Below are some important metaverse real states which have been in trend. 

1. Gamming Platforms 

Investors are pouring millions of dollars into the ground. But these green fields and rolling hills only exist in video games as digital real estate attract both investors and dedicated gamers. The digital real estate market has been boosted by the recent epidemic of fuels in electronic games and investor enthusiasm around cryptocurrencies. Many see NFT-enabled games as a potential boon for the multi-billion-dollar videogame industry. In games like Fortnite, Minecraft, and World of Warcraft, gamers have spent years on gear — such as weapons, armor, or tools to strengthen their character. NFT-enabled games now allow players to trade game assets for cryptocurrency, selling them for a coin that can be transformed into dollars when they score something good or go on a new adventure. In some games, players can purchase digital deeds for real estate in the form of NFT, which proves the authenticity of a specific plot in a certain game. More players joining the game will appreciate real estate, and rare land is sold to other players who need plots for specific tasks and missions. Players can then lease their land to other gamers, charge others to use it, or sell it — either in a game or on a third-party exchange like OpenSea. Transactions are usually based on the game's unique cryptocurrency, which can be converted into Ethereum and then into US dollars.  

However, there has been a lot of movement in the digital land in the last few years. Digital land purchases have generated millions of dollars. For example, in March 2021, a group of people paid around USD 1.6 million for the Citadel of the Stars, a large state in the unpublished fantasy role-playing game Mirandus, said Eric Shearer, co-founder of Zynga and now chief executive of Mirandus creator Gala Games. That purchase paid 1.5 million for nine adjacent plots in the virtual pet universe Axie Infinity. Also, in March 2021, Virtual World the Sandbox sold land worth about USD 2.8 million in a well-received pair of sales, and the company now owns about USD 37 million worth of its digital properties. In this virtual world, various games are hosted in each plot and players can change the game they are playing while exploring the world. To boot, gamers have collectively invested billions of dollars in videogame loot, but NFT-enabled games are different because players own the assets in their games. Numerous analysts said the long-term viability of NFT-enabled digital games requires to attract mainstream users who are not well versed in cryptocurrencies or NFTs. For example, on March 17, 2022, SBC (HSBA.L) is buying a plot of virtual real estate for an undisclosed amount in an online gaming space called The Sandbox, the bank's first major entry into Metaverse as it cuts its UK branch network. 

2. Virtual Events  

In the last few years, metaverse real estate has been extensively adopted for masses of virtual events. Several great singers are investing heavily while some are performing live metaverse concert on this platform. The last few years have seen the participation of some of Nanak's biggest singers in this, Justin Bieber performed at the Live Metaverse Concert in November 2021. And on March 27, 2022, Daler Mehndi has bought virtual real estate on the Indian Metaverse platform PartyNite. He has called the property Balle Balle Land. Singapore's indie band Bandwagon has performed in virtual reality for the first time this March 2022 as part of the Pixel Party. There are several examples that are rising the demand for metaverse real estate over the years. This is also the reason why metaverse real estate is currently being adapted for the party, new show concerts as well as many events. Soaring awareness of virtual real estate is among millions of consumers and market players are gaining huge potential in the market and making it one of the most trending elements in the market. 

3. Paradigm Shift of Peoples, Firms, Investors Towards Digital Land is Creating Huge Share in the Market 

While most people cannot afford to buy a home in the real world, manifold enterprises hugely contributing to buy fake land. CNBC reported that digital plot prices have soared by 500% since Facebook took a step towards becoming a meta. One company reportedly spent more than USD 2.5 million on land in Descentraland, complete with crypto-based metaverse with its own currency where each piece of content in the game is completely autonomous, owned by players. Another firm spent roughly USD 4.3 million to buy land in Atari's The Sandbox Metavers. And in November 2021, Sandbox, a virtual meta world allowed users to create and play games. Sebastian Borget, co-founder and COO of Sandbox told Al Arabiya English that about 16,000 people have bought virtual land plots in the new blockchain-linked video game. However, in the current zeitgeist, metaverse refers to this niche virtual world that, in most cases, looks much worse than average videogame. Celebrity looks and shows are becoming quite common, a bit like Fortnite concerts, and some like Snoop Dogg and Paris Hilton have assets in this world. While the house next to Snoop's planned mansion is going for 4.3 million, naturally putting celebrities on board is helping to raise the price. Shifting towards digital land has become new normal which is achieving highest revenue in the market.  

All aforementioned aspects are drastically trending among thousands of market players. And these are responsible to enhance the overall sale of the metaverse real estate market worldwide.  

Global Metaverse Real Estate Market Regional Analysis:

On a geographic basis, North America is expected to capture the largest share of the global metaverse real estate market increasing investment in the metaverse real estate and the presence of many players in this region. When it comes to innovations and technologies, the U.S. is always at the forefront across the world as it is one of the developed countries. Indeed, lots of major players have a huge presence in this region. The concept of investing millions on the non-existent property may sound ludicrous, but feverish estimates of a virtual reality future are forcing investors to bet giant on metaverse real estate. For example; in December 2021, New York-based Company Republic Realm announced that it had spent a record-breaking of around USD 4.3 million on digital land through The Sandbox, one of numerous “virtual world"" websites where people can socialize, play games, and even join concerts. That came hot on the heels of about USD 2.4-million land purchased in November 2020 on a rival platform, Decentraland, by Canadian crypto company Tokens.com.

Europe is expected to be the fastest-growing region in the global metaverse real estate market owing to the highly growing metaverse industry towards gaming. The metaverse is already moving complete steam ahead in the games industry. Each one of the top metaverse sales was in-game digital land. For example, a plot of digital land was just sold for around USD 2.3 million on Axie Infinity, as the real-estate race heats up through the metaverse. The potential for gaming in the metaverse is skyrocketing in this region which is further creating enormous opportunities for real estate in the metaverse.

Report Analysis Details
Historical data 2015 - 2018
Forecast Period 2020 - 2025
Market Size in 2020: USD 358.0 Million
Base year considered 2020
Forecast Period CAGR %:

45.2% 

Market Size Expected in 2025: USD 3600 Million
Tables, Charts & Figures: 175
Pages 200
Metaverse Real Estate Companies Axie Infinity, Cryptovoxels, Decentraland Foundation, Linden Lab, ShibaLand LLC, Somnium Space LTD., SuperWorld Inc., TandB Media Global Thailand Co. LTD., The Sandbox, The Voxel Agents, Tokens.com, Uplandme Inc.
Segments Covered By Component, By End-User
Regional Analysis North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa

On Special Requirement Metaverse Real Estate Market Report is also available for below Regions and Countries:

North America

  • U.S.
  • Canada

Europe

  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • Sweden
  • Netherland
  • Turkey
  • Switzerland
  • Belgium
  • Rest of Europe

Asia-Pacific

  • South Korea
  • Japan
  • China
  • India
  • Australia
  • Philippines
  • Singapore
  • Malaysia
  • Thailand
  • Indonesia
  • Rest Of APAC

Latin America

  • Mexico
  • Colombia
  • Brazil
  • Argentina
  • Peru
  • Rest of South America

Middle East and Africa

  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest Of MEA

Key Benefits of Global Metaverse Real Estate Market Report:

  • Global Metaverse Real Estate market report covers in-depth historical and forecast analysis.
  • Global Metaverse Real Estate market research report provides detailed information about Market Introduction, Market Summary, Global market Revenue (Revenue USD), Market Drivers, Market Restraints, Market opportunities, Competitive Analysis, and Regional and Country levels.
  • Global Metaverse Real Estate market report helps to identify opportunities in the marketplace.
  • Global Metaverse Real Estate market report covers an extensive analysis of emerging trends and the competitive landscape.
SUMMARY
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Busines Development
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