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Thank Facebook for metaverse bonanza, real estate may sell for $1 billion in 2022 Thank Facebook for metaverse bonanza, real estate may sell for $1 billion in 2022

Thank Facebook for metaverse bonanza, real estate may sell for $1 billion in 2022

Last year, real estate in the metaverse sold for over $500 million, with the majority of the action taking place on the โ€œBig Fourโ€ platforms. Sales have potential to double this year.

Thank Facebook for metaverse bonanza, real estate may sell for $1 billion in 2022

Photo by Muhammad Asyfaul on Unsplash and freepik.com

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Real estate on metaverse platforms reached $501 million last year. That figure could double in 2022, according to analysts speaking to CNBC.

Facebook played a big role in the surge last year, starting when the company announced its rebranding to Meta and its focus on the metaverse on the 28th of October. With Facebookโ€™s announcement, sales started to surge in November, reaching $133 million โ€“ a ninefold increase.

Sales at this level have continued into this year, hitting $85 million in January โ€“ ten times more than in January 2021. If the market will keep this tempo throughout the year, analysts at MetaMetric Solutions predict the total sales in 2022 could reach $1 billion.

Most action on the โ€œBig Fourโ€

The vast majority of the pieces of land-changing hands are located in the so-called Big Four metaverses โ€“ย Sandbox, Decentraland, Cryptovoxels, and Somnium. These four hold 268,645 parcels of land of various sizes, but there are over a dozen platforms on the market.

โ€œThere are big risks, but potentially big rewards,โ€ said Janine Yorio, CEO of Republic Realm, a metaverse real estate investor and advisory firm.

Focusing on the Sandbox, the biggest metaverse real estate platform, Republic Realm paid a record $4.3 million for 100 โ€œFantasy Islandsโ€ with their own villas and a related market of boats and jet skis. Ninety of the islands sold on the first day for $15,000 each and some are now listed for resale for more than $100,000.

According to a report from Republic Realm, Sandbox dominates the metaverse real estate market, with 62% of the available land on the four platforms and three-quarters of all land sales in 2022. Sandbox has virtual room for 166,464 parcels which sold for $12,700 in December. The parcels are 96 meters by 96 meters.

The second player on the market, Decentraland, has 90,600 16 by 16 meter parcels, which sold for $14,440 per parcel in December.

Is location important?

According to some analysts speaking to CNBC, location is not so important, while others claim location is everything.

โ€œYou can teleport anywhere so location isnโ€™t as important,โ€ said Republic Realmโ€™s CEO Janine Yorio.

Evidence pointing in the other direction are the fact that parcels near-legendary rapper Snoop Doggโ€™s planned partnership and virtual world in Sandbox are fetching a premium, along with parcels near the Atari development on the same platform.

Posted In: Analysis, Metaverse, NFTs