Greetings! This night I was talking with one man in a group I moderate, Private Islands for Sale. Guy asked me about my opinions, and if the price of his island is big or not. I cannot say who was it or which island was it of course, since it was a private conversation, but cause I had interaction with other people generally who are selling islands, I think that those things will interest them as well.
Now, I am not an agent or something like that, for detailed information you have to contact a local agent. All I can tell is what I know, some of the points and thesis that may affect the price of islands. There are many stuff literally that may dictate and determine price, and most of them are subject to constant change or times and/or situations. So here are:
– Location of the country – One of key thesis on which country island is located. The more popular country, the bigger tourist destination is, the more expensive islands are, logically. Also, unstable countries and governments may affect prices negatively.
– Location of the island itself – How far island is from the coast? How far is an island from groceries, hospitals, bars, malls etc…? Also, islands closer to the coast can get underwater cable for mainland electricity, water, sewage, which is a bit harder to those very far away from the coast. Also, the price of gas for constant boat ride and overall time spent to get to an island and off it also plays some role. Close islands tend to cost more because all of that.
-Size of the islands – Size matters in many situations. The bigger islands mostly have more possibilities. For example, you can plant more coconuts, you can make more buildings, space for something etc etc… Important is to mention that some private islands are flat and have room enough to pave the runway for jets! So, usually bigger ones cost more.
-Physical feature of the islands – Is the island rocky, barren? Or does it have lush vegetation, a long white sandy beach with turquoise waters, and a natural bay? Yes, that is also important a lot. These picturesque islands are often considered paradise, and paradises cost more. There are islands without beaches, filled with mangroves and other vegetation (usually in Belize). They are ,,stock ones”, and buyers buy them, to clean some areas, fill them with fine white sand and plant some coconuts, put infrastructure, and are ready for good enjoyment. Such islands cost less usually because they are being used as base.
– Flat or hill – Also, islands can be flat, rocky and hilled, and a combination of both. Flat islands are usually good (such as the Maldives, Belize etc…) because they provide more space. Also, flat is a must if you want to put airfield. But in another hand, the soil is salty, and limited vegetation grows there. Island with hills (if have enough space) have a little bigger attitude to ,,escape” some of the salt, and more types of vegetation can grow there. Also, a bigger attitude provides a better view to climb there, hike or put the building. Bigger point sometimes matters for signal reception and better to ,,catch” Sun for solar panels (if the summit is bigger than trees).
– Freehold or leasehold – There are two types. Freehold is when you buy it and it is yours, like any other object you buy, and leasehold is when you ,,rent it on the long turn”. That depends of the contract. Logically, freehold islands are more attractive to the buyers, thus cost usually more.
– Infrastructure – Yes, sometimes you buy island without anything, and you need to waste time and money on infrastructure (have in mind that building on island usually cost much more than in mainland due to materials and workers needed to be transported) if you want your own house there. But, some islands do have already built on houses on them. And jetty/docks, staff quarters… That is more expensive of course. And as more expensive material is, more luxurious, the more expensive island will be. If you want to buy an island with resort, that usually cost more.
– Taxes and maintenance – there are some of the benefits when you purchase a property in ,,tax heavens”, because there are almost or completely no taxes. And usually, it is advantage, and islands there can cost more, because they benefit more from being tax-exempt.
– How quickly you need to sell the island – that also matters. When people usually need to sell islands very quickly, they decrease prices. Sometimes (depending on cases) people wait for months or years to sell islands.
– Potential income – If an island has various farms, plants, has already gotten development plans, or are already designed as a resort, and can receive guests immediately, then potential income is to be expected. And often, they cost more, because they should generate profit soon.
– Climate – Yes, this also matters. Usually, tropical islands are more attractive than temperate ones. And cost more.
– Seawater, lake, or river island – There are islands located on all those locations. And usually islands on saltwater are more preferred than lakes (since technically you can go by boat anywhere on the open coast, and the lake is usually full locked, and also seawater have corals and other life not present in freshwater) or moving water like rivers, but also cost more.
– Higher force and global situations – Economic crisis, disasters and now corona may dictate prices, often unpredictably. Risk is to be expected.
I hope this all helps a bit to see what all can determine and affect prices on islands. But again, better to consult a local real estate agent, as he has direct information regarding your region.