Buck Island, British Virgin Islands.
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international | idProperty
Island life
More exclusive than a Venetian Palace or Scottish castle, private islands are much sought-after properties. While the best islands can be hugely expensive to buy, others are surprisingly cheap, especially in these tricky economic times. text: Richard Warren
March 2009
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Private Islands Inc
idProperty | International
Diamond Cay, Hondurous.
It’s enough to make you want to spend the next couple of years on a desert island. With the international banking crisis far from over we are promised recession, depression, deflation and all manner of other economic horrors by the world’s financial analysts who have taken on the persona of mediaeval soothsayers in these anxious times. Where better to ride out this economic maelstrom than on a palm-fringed isle far away from banks, newspapers and other sources of fear and confusion. After all, there are only so many times you can move cash from bank to bank and from bank to under the mattress and back to the bank again. As it happens, now may be a good time to buy a private island in the tropics, because the economic downturn means demand for these exotic pieces of real estate has slumped along with everything else, making it a buyers’ market. On the other hand, could falling sales of these islands be a cause for concern, a sign that they are not a secure investment? Such worries mean that not even a desert island is a safe haven from the storms blowing through global financial markets. So, is there any escape from all the chaos of near bankrupt banks being bailed out by governments and near bankrupt governments being bailed out by the IMF? Well, the top end of the private islands market remains a safe bet according to Vladi Private Islands (www.vladi.de), the German estate agency which specialises in marketing these glamorous niche properties. It says the market for islands off the coasts of Europe, North America, Australasia and in the Caribbean remains strong. “The credit crunch will not affect values of quality islands which have been in firm hands for a long time,” says Farhad Vladi, the agency’s proprietor, “It will
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definitely have an effect on secondary islands, which were bought for speculative purposes. These are islands mainly in Central America, South America and the Indian Ocean. Islands off the coastline of Western Europe would not be affected.” Quality islands are not cheap. They cost millions of dollars and their wealthy owners generally don’t need to sell he warns. “It is very difficult to get quality islands these days, as the people who own such islands and use them are emotionally attached and financially not so volatile,” he says. And here’s the rub. A private island is not like most other types of property, because they attract buyers looking for a level of solitude not found anywhere else. “A few years ago, I went through all my old notes and records trying to construct a demographical and psychological profile of island buyers,” he says, “They seemed to have nothing in common – they were all types, from all age groups and backgrounds except for just one thing – all were very strong individualists, determined to put their own personal stamp on an island. “And, all are looking to catch the spirit of a quiet and untouched island. All of the island owners are secluded nature-lovers and they respect nature. And they are intelligent, as they often need to improvise. They generally look for solitude, tranquillity, privacy and a place away from the everyday routine. They have found that an island could be a cure for their soul, although they live sometimes only two or three months on their island.” A cure for the soul. People must pay a high price to purchase that sometimes. Islands for sale at the time of going to press include Sanda Island off the coast of Scotland. The owner of this Dhs17 million Scottish isle is allowed to use the feudal title Laird of Sanda, issue their own stamps and mint their own
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gold coins. Located near the Mull of Kintyre on Scotland’s west coast, the 161 hectare island comes with a hill farm and two neighbouring islands. The Caribbean has some of the world’s most sought after island idylls. The richly vegetated, 17 hectare Buck Island in the British Virgin Islands has a main house and series of guest residences situated on a cliff-top. Even though it is surrounded by the turquoise waters of the sea, it also has a swimming pool. A three bedroom residence on the nearby mainland completes the package. Price, Dhs201 million. But buying splendid isolation is not always expensive. At the budget end of the market is Ilha Sapoeira off the coast of Brazil. This wooded 0.3 hectare acre island near Rio de Janeiro has three beaches, bamboo bar, piped spring water and many fruit trees including papayas, avocados and bananas. It also has its own electricity generator, satellite television, satellite phone and small motorboat. The surrounding crystal clear waters are said to be perfect for diving, swimming, sailing and fishing. Put up a hammock and you have everything you need to escape financial Armageddon, and all for only Dhs1.5 million, the price of a one bedroom London flat. Some small, undeveloped islands can be had for Dhs200,000. Private islands can be found on offer through a number of estate agencies, including Knight Frank, Savills, Sothebys, Hamptons International and Private Islands Inc. Unlike other types of property, the market for private islands is finite. New flats and houses can be built in their hundreds of thousands, but there are only so many islands around the globe. Dubai’s The World archipelago is a rare example of the market for private islands being expanded by construction. Some of these 300 islands may become private second homes for the world’s wealthy – Brad Pitt and Angelina Jolie have bought an island for themselves. However, many will not be for private use. Dubai developer, SafMus Holdings,
bought The World’s four hectare island of Great Britain for Dhs232 million recently to create a complex of homes, retail outlets and commercial buildings themed along British architectural lines. The international market for private islands could expand if more countries allow foreigners to buy islands within their borders. Most south east Asian countries like Indonesia and the Philippines ban overseas ownership of their islands. Malaysia allows foreigners to own islands leasehold. For now, no countries closed to foreign buyers are expected to open up, so the availability of private islands is expected to remain tight. Vladi recommends prospective buyers rent an island before committing to buy. Many factors must be considered when buying an island, including ease of access to the mainland and whether it is in a hurricane belt. Medical facilities must never be more than 90 minutes away by boat or helicopter, he advises. “Whoever buys an island should be able to improvise and value solitude,” he says, “If there is a power cut or a storm blows the roof off, the island inhabitant cannot simply call on the electrician or fire brigade. As king or queen of your island you must be prepared to do without many of the luxuries of civilisation. Nature is so unpredictable and one needs to be able to repair the generator in the pouring rain when there is a power cut.” Rising sea levels mean many low-lying island nations like the Maldives and Tuvalu fear becoming wholly or partially submerged beneath the waves, so prospective private islanders may want to choose properties with plenty of high ground. But even when all dangers and inconveniences are considered, islands retain a strong allure.“The luxury of a private island is summed up with one word – freedom,” says Vladi, “You can escape into solitude, and return at any time. Because of this, even the smallest island with the humblest log cabin is of immense value to its owner.” ID
Private Islands Inc
Clockwise from top left: The World, Dubai; Haapiti Niu, French Polynesia; Little Green Island, Australia.
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