Investors are interested in purchasing of private islands

Posted 02/07/2012

  

The political stability brings again on the investment map the private islands. The interest for private islands has increased, whereas the prices fell down at least 20% over the past two years, and the upcoming increase cadastral value will bring additional benefits at future sales.

Usually in the summer season the interest for the buying private island in Greece shows a growth and this year wasn’t an exception.  Especially due to political stability that returned in the country and the prices of the islands significantly decreased than two years ago. Besides, the recent sale of the island Oksiya of Stamoulis family ( Greco- Australian origin ) to the royal family of Qatar for 5 million (7 million initial price ) stimulates the interest of other buyers and sellers.  It's not a secret that most of the islands were purchased for investment purposes and not for the sake of prestige, or to create a small private paradise, as a Scorpio island that belongs to the family Onassis. Oksiya island belongs to the group of islands in the Ionian Sea, near to Ithaca , the biggest part of the island is described as Natura and has the status of environmental territory. However, there is evidence that a small part of Oksiya could be used for construction plan and might be already approved.  For this reason the negotiations for the purchase took so long time.

Another reason for the activity increase on the private islands market is the fact that with the plan completion of new economic opportunities, the new tax system, as well as the adjustment of the cadastral value, was once again in the spotlight. The potential buyers know that when you react in time, you can avoid higher taxes payment.  There is an opinion that in the areas which include private islands, the cadastral value might be certainly increased, which will bring an additional benefit in the future.

Quite often this argument is used by sellers, most of them have this properties by inheritance and try to get rid of unbearable taxes. Thus, the prices reduced at least 20% over the past two years, in order to attract more "daring" buyers.

Plenty documents and certificates that need for the ownership transfer for such property, is also the reason that over the past two years and especially until the Oksiya sale, in Greece was not done any transaction with private islands. Prices for private islands are around 5 to 10 million euros and above. Price depends on the location, distance from the mainland, the landscape area and, of course, if it’s suitability for use, at least partially.

As experts of the real estate market we recommend to take in your consideration the island location as was mentioned earlier in order to have an easy connection to the public network. In addition, great importance is not only the island size, but the presence of natural harbors and accessible coast that would be comfortable for approach. Another important element is the groundwater existence. And of course, the most important - is the availability of the necessary certificates and title documents, without which the transfer of ownership will be impossible.

 

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