With more high net worth individuals seeking secluded destinations during the pandemic, interest in purchasing private islands for luxury retreats or long-term residence has surged globally. However, islands vary greatly in ownership rights, infrastructure, geography, regulations and other factors that impact their viability as real estate investments. When evaluating the best islands worldwide to invest in real estate, key considerations include location, climate, infrastructure, ownership laws, stability and price. This article will explore top island real estate markets based on these criteria.
Islands in North America and the Caribbean offer freehold ownership and advanced infrastructure
North America and the Caribbean contain some of the most developed island real estate markets globally. In locations like the Bahamas, U.S. Virgin Islands and British Columbia, islands can be purchased freehold, meaning full ownership of the land and properties. These islands tend to have good infrastructure, with electricity, water, sewage and accessibility via boats or airplanes. They also have favorable regulations allowing foreign buyers to obtain permanent residency or citizenship. While prices vary widely, islands in the Caribbean and North America provide some of the best options for real estate buyers seeking turnkey private islands with good infrastructure and ownership rights.
European islands balance ownership rights with preservation laws
Europe offers a unique combination of freehold and leasehold islands across various countries and territories. Northern European nations like Sweden and Finland have thousands of private islands available, often at lower price points than other global markets. Mediterranean Europe also provides options, with private Greek islands and others dotting the Aegean and Ionian Seas. However, buyers must be aware of preservation laws that can limit development in environmentally sensitive areas. Those seeking fully built out luxury estates may need to look elsewhere, but Europe provides opportunities for those focused on natural, undisturbed island settings.
Asia-Pacific islands require leasehold ownership but offer development potential
In Asia-Pacific markets like Indonesia, Malaysia and French Polynesia, foreign buyers cannot purchase islands freehold but can obtain long-term leases ranging from 30 to 99 years. While leasehold ownership entails more restrictions, it also presents opportunities for investors and developers. Many Asia-Pacific islands are undeveloped or sparsely inhabited, with few existing buildings or residents. Investors can lease islands with plans to build luxury resorts, eco-tourism facilities or other commercial properties. Movie stars and business tycoons have already staked claims on tropical islands in this region.
South Pacific and Central America provide budget island investments
Not all private islands require eight or nine-figure price tags. Relative to leading markets like the Caribbean and North America, real estate buyers can find more affordable options in the South Pacific and parts of Central America. Islands in Fiji, Vanuatu and parts of Central America can cost anywhere from $100,000 to a few million dollars. These islands generally need extensive infrastructure development but allow buyers to purchase or lease whole islands for a fraction of the cost of larger counterparts elsewhere around the globe.
When evaluating the best islands to invest in real estate worldwide, key factors include location, ownership rights, infrastructure, regulations, climate, development potential and pricing. Markets like North America, the Caribbean and Europe offer turnkey private islands but at premium prices, while other regions provide opportunities to purchase or lease islands more affordably with long-term development possibilities.