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Desi billionaires shop for Caribbean islands - The Times of India
MUMBAI: After jets, yachts and luxury holiday homes, Indian billionaires are now picking up another acquisition to flaunt - sun-soaked, palm-fringed islands in the Caribbean and the South Pacific. There is an increasing trend of buyers coming from India to buy islands off the coast of Mexico and even in the Pacific.
Though no one is disclosing names yet, five deals are understood to have been struck from India in recent months. ``The trend we have observed is toward an increasing number of interested buyers coming from India. We have done five deals over the last 8-12 months," Chris Krolow CEO of Private Island Inc -- a Canada-based company which is into buying and selling islands -- told TOI. The company represents over 85% of islands bought or sold in the world.
Krolow said two of them were real-estate developers, a tribe known to invest in these islands so they can develop them further as tourist locations.
Islands come as cheap as $2-3 million (Rs 9-13 crore) to as steep as Lisbon Island, which is believed to be the most expensive island property, at around $350 million (approximately Rs 1,550 crore).
Other expensive islands on the block include Rangyai Island ( Thailand) for $160 million (Rs 710 crore) and Cave Cay (Bahamas) for $110 million (Rs 488 crore).
The ones which are sure to be snapped up include the very affordable ones - $3 million (Rs 13 crore) for the 5-acre Cove Island, British Columbia ( Canada), $10 million (Rs 44 crore) for Pym Island (Canada) and nearly $2 million (Rs 8.8 crore for the 1.3-acre Watch Island ( New York, US).
Some of these islands are ``affordable'' and fall within the budget of the desi uber rich as houses in affluent localities in Delhi and Mumbai are being sold routinely for considerations of Rs 100 crore to 300 crore.
Island marketers have been quick to catch on, given the fact that India's rich club has been rising over the years and now boasts of a record 69 billionaires.
Buyers from India have joined the league of celebrities like Hollywood stars -- Brad Pitt and Johnny Depp, pop stars Shakira and Celine Dion, and UK business tycoon Richard Branson, who have bought islands for private getaways.
And the market is hotting up now with more deals, thanks to the global financial turmoil in 2008 which led to a correction in prices.
"After the recession, some properties have reduced dramatically, as prices were quite inflated before the recession,'' he added. For some islands, there was a reduction in prices of as much as 30-50%, and in some cases owners are willing to negotiate.
Most buyers are CEOs, Hollywood stars, sports and music celebrities, and resort developers. People who buy for themselves usually pick up freehold islands usually for a luxury home, while others may even go for leasehold islands.
"With the expansion of wealth in India over the last two-three years, there is an increasing trend of high net worth individuals investing in private jets, overseas holiday homes, art and personal luxury items,'' says Rajesh Saluja, CEO and managing partner, ASK Wealth Advisors, a company which manages wealth of HNIs in the Rs 50-crore plus bracket.
Islands in the Bahamas are often the most popular with buyers, while the other favourites are those in the South Pacific and elsewhere in the Caribbean because of the tropical climate and beautiful beaches, he said.
Typically, the closer an island to a major city, the more expensive it is. This is for the same reason that any real estate property nearer to a major city commands a premium.
Private Island Inc charges a fee of $500 for an island over $1 million, and $300 for an island under $1 million, for online advertising. There are additional fees for marketing the island, flying the buyer, aerial photography - anything related to the deal - while commissions here range between 7-8% for most islands.
Financing avenues for such buys are currently scarce. Few banks are willing to finance these deals, so most island properties go in for `owner financing', which is a popular route of loaning funds to the prospective buyer by the seller.
Also, appraisers or licensed agents are important. "Without a broker, it may be difficult to check if the paperwork is in order, and only a few agents in the world specialize in the sale of island properties,'' an industry expert said.
Another trend is of people increasingly renting out islands for an experience of a private luxurious getaway. The island would have one resort consisting of a multitude of bungalows equipped with exquisite facilities, which is rented to only one group of people at any particular time.
Read more: Desi billionaires shop for Caribbean islands - The Times of India Desi billionaires shop for Caribbean islands - The Times of India
MUMBAI: After jets, yachts and luxury holiday homes, Indian billionaires are now picking up another acquisition to flaunt - sun-soaked, palm-fringed islands in the Caribbean and the South Pacific. There is an increasing trend of buyers coming from India to buy islands off the coast of Mexico and even in the Pacific.
Though no one is disclosing names yet, five deals are understood to have been struck from India in recent months. ``The trend we have observed is toward an increasing number of interested buyers coming from India. We have done five deals over the last 8-12 months," Chris Krolow CEO of Private Island Inc -- a Canada-based company which is into buying and selling islands -- told TOI. The company represents over 85% of islands bought or sold in the world.
Krolow said two of them were real-estate developers, a tribe known to invest in these islands so they can develop them further as tourist locations.
Islands come as cheap as $2-3 million (Rs 9-13 crore) to as steep as Lisbon Island, which is believed to be the most expensive island property, at around $350 million (approximately Rs 1,550 crore).
Other expensive islands on the block include Rangyai Island ( Thailand) for $160 million (Rs 710 crore) and Cave Cay (Bahamas) for $110 million (Rs 488 crore).
The ones which are sure to be snapped up include the very affordable ones - $3 million (Rs 13 crore) for the 5-acre Cove Island, British Columbia ( Canada), $10 million (Rs 44 crore) for Pym Island (Canada) and nearly $2 million (Rs 8.8 crore for the 1.3-acre Watch Island ( New York, US).
Some of these islands are ``affordable'' and fall within the budget of the desi uber rich as houses in affluent localities in Delhi and Mumbai are being sold routinely for considerations of Rs 100 crore to 300 crore.
Island marketers have been quick to catch on, given the fact that India's rich club has been rising over the years and now boasts of a record 69 billionaires.
Buyers from India have joined the league of celebrities like Hollywood stars -- Brad Pitt and Johnny Depp, pop stars Shakira and Celine Dion, and UK business tycoon Richard Branson, who have bought islands for private getaways.
And the market is hotting up now with more deals, thanks to the global financial turmoil in 2008 which led to a correction in prices.
"After the recession, some properties have reduced dramatically, as prices were quite inflated before the recession,'' he added. For some islands, there was a reduction in prices of as much as 30-50%, and in some cases owners are willing to negotiate.
Most buyers are CEOs, Hollywood stars, sports and music celebrities, and resort developers. People who buy for themselves usually pick up freehold islands usually for a luxury home, while others may even go for leasehold islands.
"With the expansion of wealth in India over the last two-three years, there is an increasing trend of high net worth individuals investing in private jets, overseas holiday homes, art and personal luxury items,'' says Rajesh Saluja, CEO and managing partner, ASK Wealth Advisors, a company which manages wealth of HNIs in the Rs 50-crore plus bracket.
Islands in the Bahamas are often the most popular with buyers, while the other favourites are those in the South Pacific and elsewhere in the Caribbean because of the tropical climate and beautiful beaches, he said.
Typically, the closer an island to a major city, the more expensive it is. This is for the same reason that any real estate property nearer to a major city commands a premium.
Private Island Inc charges a fee of $500 for an island over $1 million, and $300 for an island under $1 million, for online advertising. There are additional fees for marketing the island, flying the buyer, aerial photography - anything related to the deal - while commissions here range between 7-8% for most islands.
Financing avenues for such buys are currently scarce. Few banks are willing to finance these deals, so most island properties go in for `owner financing', which is a popular route of loaning funds to the prospective buyer by the seller.
Also, appraisers or licensed agents are important. "Without a broker, it may be difficult to check if the paperwork is in order, and only a few agents in the world specialize in the sale of island properties,'' an industry expert said.
Another trend is of people increasingly renting out islands for an experience of a private luxurious getaway. The island would have one resort consisting of a multitude of bungalows equipped with exquisite facilities, which is rented to only one group of people at any particular time.
Read more: Desi billionaires shop for Caribbean islands - The Times of India Desi billionaires shop for Caribbean islands - The Times of India
