Internet Real Estate market could reach $2.5 billion this year

Virtual real estate, in the form of Internet domain names - the part after the "www" in a website's address - is on a tear and showing no signs of slowing down (Business 2.0 reports). By some estimates, the market for registering and trading domain names could reach $2.5 billion this year.

What makes domain names so valuable is the boom in Internet advertising. Part of the appeal of generic, easy-to-remember names is that people often search the Web by typing website addresses directly into browsers, a phenomenon that's referred to as direct navigation. Site owners then turn that traffic into cash by filling their sites with relevant ads provided by Google, Yahoo, and other online-advertising networks.

iReit, a private company that is accumulating domain names, has amassed a domain portfolio of more than 400,000 names in the past year and a half, iReit.

Some recent sales have been include: Diamond.com sold for $7.5 million. Misspelled morgage.com (notice missing "t") sold for $242,400. Hangover.us sold for $9,500. Hotels.eu sold for $330,000 and Shopping.eu fetched $200,000.

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