PRIVATE ISLANDS SHUNNED

Demand for private islands is dropping, because of the global recession.

According to German estate agency, Vladi Private Islands, demand is holding firm for the most sought after islands, but falling away for less well located properties.

“The credit crunch will not affect values of quality islands which have been in firm hands for a long time,” says Farhad Vladi, managing director of Vladi Private Islands, “It will 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.”

Sales prices for islands in less sought-after locations can be relatively low.

For example, Ilha Sapoeira, off the coast of Brazil is on the market for $399,000. This wooded 0.3 hectare island near Rio de Janiero has three beaches, bamboo bar, piped spring water and many fruit trees including papayas, avocados and bananas. It has an electricity generator, satellite television, satellite phone and small motorboat. According to Vladi, the surrounding crystal clear waters are perfect for diving, swimming, sailing and fishing.

Canada has many private islands for sale and is considered a relatively secure market. Kings Island in Nova Scotia, north east Canada, is a wooded, 2.6 hectare retreat in a lake. It has a log house, power and hot and cold running water. Price, $280,000. Undeveloped islands can be picked up for as little as $30,000.

In the best locations and with plenty of facilities, private islands can be expensive. Sanda Island off the coast of Scotland is on the market for more than $5 million. Its owner can adopt the feudal title of Laird of Sanda, issue his own stamps and mint his own gold coins. Located near the Mull of Kintyre on Scotland's west coast, the 161 hectare island has a hill farm and comes with two neighbouring islands. Vladi is marketing this jointly with estate agency, Knight Frank.
But, be warned - It takes a special kind of person to live on a private island, even if they do so for only part of the year says Vladi.

“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.

“Few of us can withstand the longing for our own private island, surrounded by a turquoise ocean or set on an idyllic lake, far from the stress and speed of the rest of the world,” says Vladi, “Even though an island is a manageable size, it can engender a feeling of infinite space - the vast expanse of water that separates you from the mainland is your own backyard.”

What's more, many of us may want to escape to our own desert island during these turbulent times.