Bermuda: the Ultimate Island Location for a Trophy Property
Bermuda has been named as the world’s top island for wealthy individuals seeking luxury and private space. Owning a home on one of Bermuda’s islands is now one of the most prestigious trophy purchases in the world, according to a new survey from Candy & Sandy, Savills World Research and Deutsche Asset & Wealth Management.
The compilers of the report analysed the global trade in island real estate and considered the volume of luxurious property holdings, transport links to mainland markets and other factors including sources of capital, occupiers, tax regime and real estate prices.
‘A private island is the ultimate trophy asset and financial return is not the primary motivation,’ according to Nicholas Candy, chief executive officer of Candy & Candy. Rather, Mr. Candy went on, ‘these buyers are seeking the ultimate hideaway and a chance to shape their own world. For them being remote and private are priceless.’
Not quite, perhaps - but certainly the price tag would make most of us sit up. A typical Bermuda property sells for in excess of $4m, and that’s for a four-bedroom home. Larger properties with good views or beach access can be exponentially more expensive, which helps explain why this US outpost has become the almost exclusive preserve of the super-rich, with more utlra-wealthy property holdings than any country except the USA itself.
Bermuda tops the list - but it shares the top end of the most desirable locales worldwide with other Caribbean islands like the Bahamas, the British Virgin Islands and Antigua. It’s the proximity of the huge wealth-generating markets of the USA that make these Caribbean getaways so appealling.
‘The last ten years were the decade of prime urban property investment; the next ten years will see a growing appetite for island real estate investment and lifestyle,’ said Yolanda Barnes, director of Savills World Research. ‘For the world’s wealthy, the pinnacle of achievement is to own what is exclusive and rare, so an island property goes hand in hand with a luxury apartment in a prime city,’ she went on.
The joint report identifies four distinct island real estate markets: private islands, which represent the ultimate in trophy assets; leisure islands, a less desirable and less expensive option, usually for second, third or fourth homes; relocation islands for a permanent lifestyle or business move; and finally, city-linked islands which offer some of a more remote island’s benefits, but with city conveniences.
‘When it comes to owning island properties,’ says Ms. barnes, ‘there are many motivations driving these purchases. A purchase of passion or for social cachet, a business or relocation move, or a philanthropic desire [for example].’ Ms. Barnes went on to explain some of the appeal of an island: ‘Islands can be safe havens during global economic unrest and premier city-linked island real estate can cost up to four times that on the mainland.’
The report also identifies a number of factors that are contributing to the changing market in luxury and prime real estate worldwide. Globally, the ultra high net worth population is forecast to grow by 18% between now and 2018, and this is likely to fuel interest in island and other premier property. ‘This spurt of activity will… drive demand at the top end of the market. The uber wealthy, in search of the ultimate adventure, will seek out the rarest opportunity, paying a premium for scarcity,’ Ms. Barnes said.
Written by Les Calvert of www.homesabroad.co.uk - overseas property reporter
View All News Articles