Why metaverse real estate is selling for millions

Real estate in the metaverse – land or structures in a virtual environment – is, in reality, nothing more than pixels on a computer screen, but its value is rising. Virtual land can be built upon to create experiences that lend themselves to advertising, marketing, socialising and entertainment. The type of properties that are being built in this virtual environment includes corporate headquarters, billboards and casinos where games can be played online by 3D avatars. The value of each plot of land depends on the experience it provides, as well as other factors, such as collectability, platform popularity and market sentiment. When Facebook announced that it would be changing its name to Meta in June 2022, signalling its interest in the metaverse, digital real estate value increased, and it's estimated to increase further by 31% compound annual growth rate (CAGR) from 2022 to 2028, according to recent market data from MetaMetrics Solutions.