For the Ultra-Rich, the Private Island Market Is Full of Possibility
Have you ever dreamed of escaping to your own private island? For most of us, that’s only a fantasy, but some ultra-wealthy buyers can make owning an island a reality.
Luxury real estate has been booming in recent years. In fact, more than $40 billion worth of residential real estate valued at $10 million or higher changed hands in 2021, more than double the amount in 2020, Bloomberg reported.
Although island sales likely make up a small percentage of the luxury real estate market, the demand for private islands has soared in recent years, too. Many are sold for tens or hundreds of millions of dollars and feature enormous estates and other amenities.
Demand for Private Islands Has Been Fueled by the Pandemic
In the years since the COVID-19 pandemic began, some private island buyers seem to have been motivated more by a desire to escape the virus than by the glamour of owning an island.
The New York Times explained: “Before the pandemic, an island was typically a vanity purchase that a wealthy client — usually male — would pursue sometime after retirement, brokers said. The island bug would usually strike a few years after the novelty of other luxury purchases had worn thin.”
After the pandemic hit, buyers’ priorities changed — and demand soared.
“This has been the busiest two months I’ve had in 22 years of selling islands,” Chris Krolow, the chief executive of Private Islands Inc., told The Times in mid-2020.
However, newcomers to the private island market have had to learn that it isn’t always smooth sailing. If they’re hoping to build on the island, construction is likely to take longer and cost more than it would elsewhere. And in the long-term, climate change could threaten their island paradise.
That hasn’t deterred many wealthy buyers from buying their own island, though.
Private Islands in the United States
Many might associate private islands with the Caribbean or other tropical areas, but there are plenty of private islands for sale in the United States, too.
In early 2022, the largest private island estate on the East Coast was listed for $100 million. The 60-acre island off the coast of Connecticut features a Gilded Age estate that was built in 1905 by industrialist and baking powder magnate William Ziegler, Town & Country reported.
In addition to the 13,000-sq.-ft. main house, the island also includes a guest house, a caretaker’s cottage, a 19th-century farmhouse, a seaside cottage, and an equestrian facility.
While many private islands in the United States are listed for millions of dollars, some — especially those that are undeveloped — are a bit more reasonably priced.
Take, for example, a 2.12-acre island off the coast of Florida that was recently listed for $799,000. Sweetheart Island offers “endless possibilities,” including “keeping it an undisturbed natural island to escape to, creating an off-grid private residence either humble or grand, or creating an epic vacation rental to beef up your passive income portfolio,” its listing says.
For many, owning a private island sounds like a dream come true. Where in the world would your ideal island be?
Learn More About the Luxury Real Estate Market
Luxury real estate is in high demand across the United States. If you’re hoping to learn more about this incredibly lucrative niche, we have resources that can help!
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