In the metaverse, people (as avatars) will be able to socialize, work, shop, play, and much more in this online universe of interconnected 3D worlds. In addition, owning a well-used space increases value to a real estate investment.
Furthermore, according to a recent Grayscale survey, the metaverse's expected turnover in the near future will be around $1 trillion. People can make money from their land in a variety of ways.
The possibility for profit from virtual real estate at this level increases the value of a virtual land, causing an investor to spend millions for it.
Scarcity, utility, and consumption are 3 characteristics that influence appreciation.
Scarcity: Users purchase virtual land parcels, which are restricted in number (value due to scarcity).
Utility: How it will be used is determined by the small number of landowners. Or if it will simply be a financial investment (utility/scarcity valuation).
Consumption: The third element has to do with how virtual world users will consume content provided by landowners (valuation through consumption).