The dream of slipping off the grid and into secluded paradise is on the rise, according to luxury brokers who’ve seen online searches for private islands double or more in recent years.
This niche market has yet to return to its pre-recession strength, but general curiosity is booming as prices for private islands have dropped since the inflated days before the market crash, and thanks in part to a reality-TV series spreading the island getaway gospel.
Since last year, Sotheby’s International Realty Affliates saw searches on its website for private islands more than triple, said John Passerini, global vice president of interactive marketing.
As of Friday, the site had 37 listings, ranging from a Tahiti islet for $256,000 to a 26-acre island in the Florida Keys for $95 million.
"It’s definitely indicative of what, at least, people are interested in," Mr. Passerini said.
Chris Krolow, the host of HGTV’s "Island Hunters," said general interest in islands has surged since the series began in 2012.
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Mr. Krolow founded the real estate site Private Islands Online, which represents the largest majority of islands for sale and currently has around 780 listings. The show has proved a boon for site traffic, he said.
"It’s a way to let more people know about the market," Mr. Krolow said. "Overall, we probably get twice as many viewings on days when ‘Island Hunters’ airs."
But do more viewings add up to more transactions? Not always, said Mr. Krolow, whose site attracts serious buyers but also many daydreamers.
Even still, sales of private islands have picked up over the past four to five years––since the housing market’s darkest days––he said. He declined to provide exact transaction data, which he considers proprietary.
As a snapshot, sales in the northern region of the Bahamas, including the Abaco and Berry islands, have increased since last year, said George Damianos, president of Damianos Sotheby's International Realty. Five island properties in the northern Bahamas have changed hands so far this year, compared to two in 2015.
Great Whale Cay, located in the Berry Islands of the Bahamas, once belonged to Marion "Joe" Carstairs, socialite and heiress to the Standard Oil fortune. The 850-acre island with a paved runway and deep-water access is back on the market for an undisclosed price.
Photo Credit: Whale Cay Group Limited"There is no question about it that everybody’s fantasizing about the sand and warm water," Mr. Damianos said.
Island retreats at different price points
While it takes a multimillion-dollar fortune to afford an island in the Bahamas, the Abaco region is less expensive compared to the celebrity-filled Exuma Cays area, where stars like Tyler Perry, Johnny Depp and spiritual leader Aga Khan own personal retreats.
A buyer in the Abaco region might be "someone worth $50 million versus $500 million," Mr. Damianos said.
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Certainly, prices have come down substantially since the mid-2000s, when a boom in sales to celebrities and price gouging characterized the private island market.
Between 2004 and 2008, celebrity buyers included "Pirates of the Caribbean" lead Mr. Depp, who bought a 45-acre island in the Bahamas for $3.6 million, and actors Eddie Murphy and Mel Gibson buying islands of their own for $15 million each.
Meanwhile, island owners wanting a piece of the action put their properties on the market and set unrealistically high prices, said Farhad Vladi, founder and president of Vladi Private Islands.
He pointed to the notorious case of Innocence Island, the Bahamas’ largest privately owned island, replete with mango trees and its own airport code. The owner originally put the island up for sale for $55 million. But under pressure to sell, he only got a third of his asking price when the property sold at auction for $17 million in 2014.
Now, reduced prices have helped renew interest among buyers, Mr. Vladi said.
Vladi Private Islands oversees between 30-40 transactions per year, and Mr. Vladi said he sees market trends for private islands reflected more in the price changes than in the number of islands sold from year to year.
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"The prices are on the low side at the moment. That is the reason why nature conservancy groups and governments are stepping in and buying islands," Mr. Vladi said. He’s currently involved in three island sales to nature trusts and nature conservancy groups in Nova Scotia, Canada, he said.
More affordable private-island markets have also cropped up in places like Belize, home to the second-largest barrier reef in the world. "Belize is still a very undervalued market and is really coming into its own," said David Keener of Vision Properties Belize.
Buyers in Belize are particularly interested in turnkey properties and partial ownership, said Mr. Keener, who also credited "Island Hunters" with an uptick in interest for his private island listings. Partial-ownership listings include Little Harvest Caye, a 1.5-acre island near Placencia, Belize, that comes with a full staff and chef, and a five-bedroom, seven-bathroom main house, which was listed by Vision Properties for $289,000 for a one-tenth share.
Plots of land on the 30-acre Placencia Cay, along the shoreline of southern Belize, start at $199,000.
Private Islands Inc.Rent or buy?
Despite the growing curiosity online, wealthy millennials may keep residential private island sales from returning to their pre-crash glory. "The younger generation does not want to own," Mr. Vladi said. "They love to have excitement and no responsibility."
Increasingly, wealthy, young sun worshippers prefer to rent islands short-term rather than buy, said several of the brokers.
For instance, star magician David Copperfield rents out his Musha Cay retreat in the Bahamas for $39,000 a night, with a four-night minimum, and can accommodate up to 24 guests, according to the island’s website.
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Mr. Krolow of "Island Hunters" is in the process of developing a rental island off the coast of Placencia, Belize, where a couple could hideaway for around $20,000 per week. The best part is that the island’s staff stay on a different island for ultimate privacy, Mr. Krolow said.
Today, most island buyers are 50 years or older, while people in their 30s and 40s prefer to rent for a couple of weeks at a time, Mr. Vladi said.
"The rental market for private islands is picking up enormously," Mr. Vladi said, "moving it from real estate to tourism."
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