I take the liberty to draw attention to one important fact, which relates to many real estate markets, in particular to the island market.

Of all privately owned islands in the world, there is only approx. 5 % of islands, which I would consider to be quality islands - islands which fulfil the criteria our check-list and which always are in demand. These islands are not affected at all by the present global financial crisis. Much in contradiction, their prices are stable and are even rising.  

The remaining approx. 95 % are what I refer to as “adventure islands”. These islands have been affected by the current crisis. Speculators bought these islands and consequently inflated the prices – while being of the opinion that these islands would follow the same price trend as quality islands. Hence, the bubble has burst and the prices are in a free fall.

Such “adventure islands” can be found advertised for sale all over the internet. The photos shown may be appealing, however what one does not see are the realities, such as the surrounding areas, the sand flies, the difficulties with development, the absence of electricity or water, the social tension in the area, the political instability and the actual demand for real estate in that specific area. 

Only a few islands qualify as “quality islands”.

Farhad Vladi, Vladi Private Islands