The reduction in the rate of growth of the world economy is forcing companies and private investors to be more conservative — in particular, to invest in real estate. This trend stimulates interest in the purchase of such exotic goods, like Islands. Acquiring atolls with Golden sandy beaches and coconut trees are increasingly interested in not only movie stars and show business, but also financial conglomerates. .<url>” I understand why this is happening and whether or not a private piece of land in the ocean — an impossible dream for “a mere mortal”.
Island expansion
In recent years investors especially from China, are actively investing in the purchase of the Islands. So, last week, the Chinese investment company China Capital Investment Group bought the island South of the Mall near the Great Barrier reef in Australia, to pay for 25 million Australian dollars (about 19 million US dollars). The attention of investors was attracted by the economic potential to develop 12 hectares of pristine nature with a beautiful 600-metre beach. Businessmen from China plan to build several luxury resorts. A year earlier, the same company bought Daydream island with a complex of Daydream Island Resort&Spa.
According to the Director of foreign real estate of the Russian office of international consulting company Knight Frank (KF) Marina Kuzmina, before the island was exclusively buying status, luxury item, however in 2016, the business and profile companies from Russia began to consider the island territory from the point of view of investment and sites for development projects. “For example, we are interested in buying an island in Greece not far from the mainland for the construction of a hotel with Spa or a complex consisting of several bungalows. Any suggestions at a distance of not more than 200 meters, allowing you to save on communication”, — she said in an interview with “Tape.<url>.
According KF, in the last two decades the development of the Internet, the global financial crisis and the impact environmental aspects have forced the wealthy to shift the focus from earnings in the financial markets and to more actively invest in real estate. The review KF noted that the development of island resort real estate, the most promising are the Islands of Central America (Panama, Costa Rica, Belize) and the Asia-Pacific region (Philippines, Tonga). Bali, Phuket and Fiji, according to estimates of the KF, are the most Mature markets of island real estate. The company noted that the acquisition of private Islands are interesting not only for large entrepreneurs but also non-governmental organizations, funds for the protection of the environment — with the aim of preserving unique ecological systems, as well as governmental agencies — for development of resorts. The number of purchases made by these categories of investors has grown over the last decade more than tripled.
Interest in the Islands grows amid falling prices, said the CEO of Golden Brown Real Estate Tatiana Burakowska: “the Most affordable deals, which are popular in the market, located in Croatia, South America and Canada. More expensive exclusive options — for example, with its own airport is Brazil and the Bahamas”.
According to estimates Bulakovskii, on average, the world market appears annually about 250 proposals for the sale of the island. On the website of the company Vladi Private Islands, the largest broker in the sale of the Islands, you can find hundreds of lots in different parts of the world — from Central America to Africa.
Toys for the stars
Island buy not only for creating fashionable resorts, but just for fun. However, such exotic purchase afford only very wealthy people. Retire in Paradise can afford or successful businessmen, stars of cinema and show-business.
Musha Key, a private island of David Copperfield
Photo: luxuryretreats.com
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Owners of private Islands are David Copperfield, Leonardo DiCaprio, Celine Dion, Claudia Schiffer, Eddie Murphy, johnny Depp, Mel Gibson, Brigitte Bardot and other celebrities. The Director of the division of world research at Savills Elonda Barnes believes that unlike previous decades, which was a time of investment in elite urban real estate, the following will be a flourishing of investment in property on the Islands.
Russian billionaires, as a rule, Islands are not interested or do not advertise their interest. Although occasionally the romantic spirit awakens in them. For example, in April 2013 the Greek Islands of Skorpios and Sparti was bought by the oligarch Dmitry Rybolovlev. The buyer is one of the companies his investment trust, acting on behalf of the daughter of the businessman Ekaterina. Prior to the transaction a piece of tropical Paradise in the Ionian sea belonged to the granddaughter of the shipping magnate Aristotle Onassis. The purchase price was estimated at $ 100 to $ 150 million. On the island built three houses, a helipad and a dock for yachts, and its contents, according to Forbes, costs 1.5 million euros per year. The representatives of the family Rybolovlevym emphasized that there are no hotels on the island are not going to build, and purchased it solely for family holidays.
The island price “odnushki”
The price range on the island is very large. Dwarf atolls in the sparsely populated parts of Canada are sold at 30 thousand dollars, which is cheaper Studio apartments in the Moscow region, in the Bahamas and the Philippines for a property in the middle of the ocean will have to pay 60-70 million dollars, in Mexico is 100 million. For example, the island of Gatun in the Panama area of three thousand square meters, worth 28 thousand dollars. And one of the most significant transactions on acquisition of island territories was to buy most of Lanai, Hawaii: in 2012, Oracle founder Larry Ellison bought the land for 500 million dollars together with several small towns, inhabited by three thousand people.
Skorpios Island
Photo: Stuart Clarke / REX / Shutterstock
However, only five percent of the total number of private Islands in the world are considered high-quality real estate with good transport accessibility, electricity and sanitation, in countries with a stable political regime. Burakowska notes that for the acquisition of marketable goods need to be willing to pay for the island not less than one million euros, and to equip it with all necessary may be more expensive than the purchase of the asset.
Some countries are ready to give the island to hire a developer for the symbolic amount of money provided that the investor will build the necessary infrastructure, including for the travel industry. This approach is practiced, for example, the Philippines.
For other countries, the sale of the Islands is a way to replenish the state Treasury. Greece, in the midst of financial crisis offered the investment companies and private corporates are dozens of atolls in the Mediterranean sea. Some of them cost less than a house in London. However, as analysts have noted, such a non-trivial way did not help the descendants of Hellas significantly to patch up the budget.
Make rent and live in peace
Legally, the procedure of acquiring the island is a little different from buying property, but in different countries has its own characteristics. Director of retail sales PSN Group Ekaterina Thain said that the Maldives cannot acquire ownership of the island, but it is possible to conclude an agreement on long-term lease with subsequent prolongation.
Practice long-term lease for a period, typically 30-50 years, particularly prevalent in Asia. In England there are no fully private Islands. In Greece there are serious restrictions on the construction of real estate and infrastructure on the Islands because of the abundance of ancient monuments and architecture, while in Croatia the development of the Islands is completely prohibited.
In Russia, too, at desire it is possible to buy the island, but the legal details of the design depend on the category of lands to which he referred, says partner Goltsblat BLP Vitaly Mozharovsky. The lands of the forest Fund, can not buy — only to rent, agricultural land cannot be sold to foreigners. Certain restrictions apply to the purchase of the Islands in the border zone. In addition, according to the lawyer, there are restrictions on building in the coastal zone.
