17-04-2025
Things to keep in mind while buying your own private island
Forget the secluded villa or penthouse suite. When it comes to luxury property, nothing says you've made it than owning a private island. Like Sir Richard Branson's Necker Island or Leonardo DiCaprio's Blackadore Caye, it is the ultimate symbol of wealth, a safe haven and a chance to build your own paradise.
While Dubai may be creating its own private islands, there are thousands of natural ones for sale around the world, from Scotland to South America. Prices vary according to location, size, accessibility, and existing infrastructure – basically, what has already been built on the island.
Surprisingly, private island ownership isn't as expensive as you'd think. For example, Vacsay Island in Scotland's Outer Hebrides was recently listed for around £350,000 (Dh1.65 million). At the other end of the scale, Point Buckler Island, a 39-acre marshy island in California was up for sale at $75 million (Dh275 million). 'I would say the majority of transactions are happening between $250,000 to approximately $4-5 million,' said Farhad Vladi, the owner of the Vladi Private Islands portal.
If you are thinking of buying your own private island, there are a lot of factors to consider, said Chris Krolow, CEO of Private Island Inc, another popular portal. He says location and accessibility are the big ones, as you want to be fairly close to the mainland and transportation. That's why islands in the Caribbean and the Mediterranean continue to be the most popular regions. Obviously, you can't change the location once you've bought the island, so think about where you want to be close to.
Infrastructure is another important consideration. From the home you will live in, a road to get you there, a jetty and maybe even a runway, infrastructure is vital. The more developed an island is, the higher the price. And don't forget communication systems - satellite internet, phone systems, or cellular networks to stay connected with the outside world.
Vladi has been in the private island business for 50 years and has sold more than 3,000 islands. 'In the beginning, the biggest problem when buying islands was the infrastructure — no telephone, no electricity. But today, this is all so easy with modern technology. You have the internet everywhere and you have electricity. You can get solar energy, very modern fuel-efficient generators, prefab homes and so on.'
Green oasis
The opportunity to buy an island that hasn't been developed is becoming more attractive as it gives new owners a chance to build their own havens, with many opting for sustainability. 'There is an increased demand for sustainable, eco-friendly islands. Buyers are seeking islands with existing sustainable infrastructure or the potential for eco-friendly development,' explained Krolow.
While the island may be private and all your own, you need to understand local laws regarding land use, conservation efforts, and potential development restrictions to make sure you enjoy compliant and sustainable ownership.
Private island buyers are a diverse group and their objectives and needs vary considerably, from a weekend getaway to a sustainability project to commercial reasons.
Some are looking for an island with existing infrastructure, such as villas and docks, while others want a blank canvas to create their own environment. 'There's also the rise of private island resorts and commercial developments. Investors are purchasing islands for commercial development, including luxury resorts, hotels, and vacation rentals,' added Krolow.
The world is literally your oyster when it comes to private islands, although there are 'hot spots' in regions like The Bahamas, for example. Trending spots include Panama and Belize. Some countries have an enormous supply of islands, which makes them popular for buyers looking for a wider choice.
'Look at Canada. How many islands do they have in rivers, in lakes and along the ocean?' asked Vladi. 'And also look at Sweden. You have 150 islands in front of Stockholm, and you have Scandinavia and the Atlantic coast of Europe. You have a lot of supply.'
Asia is also a region known for its abundance of islands, although there are legal issues as foreigners are normally restricted from purchasing freehold land in countries like Indonesia, Philippines, Thailand and Malaysia.
Buyers
So who are buying private islands? 'Our typical client usually owns their own business, has an entrepreneurial background, and are looking to invest in something very special,' said Krolow. And they tend to be cash purchasers too.
Private island portals and platforms don't give away too many details about their clients so it's hard to get figures on Middle Eastern buyers.
But given the increasing number of high net worths and millionaires relocating to Dubai, there's a good chance that some of them may be considering such a purchase.'Dubai is an ultra-exclusive region. Lots of exciting movement is happening there,' said Krolow.
While second homes and holiday homes have always been popular with the wealthy, owning a private island takes it to a whole new level. A bit like moving from first class to private jet. While status and bragging rights are one thing, it could also be a shrewd financial move.
'Islands can appreciate in value over time, making them a savvy investment opportunity,' said Krolow. And the more you improve the infrastructure, the more valuable the island should become. There's also the issue of scarcity as existing habitable islands don't have a high turnover.
'People are holding on to their islands for whatever reasons; at least people love islands, and they are very close to them, and that makes me very happy on one side,' said Vladi. 'I can see that people just love the idea that they own an island, and they have the control of what they see.'
The three main reasons why people would sell an island are divorce, death and bankruptcy.
Try before you buy
Buying a private island is a significant outlay and can take time to purchase with all the legal and bureaucratic issues to take care of. Vladi gives some good advice to those curious to join this exclusive club. 'I tell them, go and rent an island in that area first, because if you buy an island, you have bought yourself into an environmental area, the social area and nature.
'You should feel love for the nature, love for the people there and spend a week, or 10 days on an island with your family, which you can rent. And then, if you say, 'This is what I like very much,' then you can buy that island.'
If you're considering buying your own island, Krolow has a few pieces of advice. 'Research, research, research. Thoroughly research the island, its location, and its history to ensure you're making an informed decision.'
He also suggests collaborating with experienced island brokers, attorneys, and other experts to guide you through the buying process. And factor in the ongoing costs of owning an island, including maintenance, staffing, and infrastructure development.
Indeed, many buyers underestimate the running costs of an island; the bigger the island the more expensive it is, from staffing to maintenance and security. 'Managing a private island often necessitates a dedicated team for upkeep, security, and operations, contributing to ongoing operational costs,' added Krolow. But the bragging rights? Priceless.
