Issue No. 13352

OWNING your own island is a dream that has long attracted the surplus millions of the rich - from film stars to shipping tycoons, celebrity athletes to rock stars.

 

Private islands are “a slice of paradise where we can set our own rules and create a vision of the world as it should be”, says Farhad Vladi of Vladi Private Islands, an international broker. Almost everyone, adds Vladi, has dreamed of owning an island.

 

With a seemingly infinite number of much-sought-after and exclusive real estate, coupled with its months of glorious weather, Greece is the prime market for private islands in Europe.

According to the Greek National Tourism Organisation (EOT), the Greek state comprises 6,000 islands and islets, scattered across the Aegean and Ionian seas.

 

Of these, only 227 are inhabited, 78 of which have more than a hundred inhabitants each. According to the Greek finance ministry, about 60 islands and islets are in the private hands of companies, groups or individuals.

 

Island ownership in Greece among the super-rich was glamorised after shipping billionaire Aristotle Onassis bought Skorpios in 1961 (see right). Even the Beetles considered buying Greek islands - one for each band member - in the 1960s.

 

Island selling is now an international, multimillion-euro business and a number of international property firms specialise in the field.

 

According to the listings of two international island brokers and one Greek property agent, there are more than two-dozen Greek islands currently on the market.

 

They range in size from the tiny, knoll-like St Athanasios (10,811m2) in the Gulf of Corinth to the massive Ionian island of Nafika, whose almost 5km2 make it larger than Monaco or the Vatican.

 

Where provided, island price tags range just as broadly - and are extremely overinflated according to some in the industry - from 560,000 euros for Ligia Island, just off Ithaca, to 15 million euros for the Saronic Gulf island of Ayios Thomas to a staggering 180 million for an undisclosed Ionian island.

 

However, according to Chris Krolow, CEO of Toronto-based Private Island Inc, there are few people around these days with the financial wherewithal to buy an island, particularly a Greek island.

“One of the drawbacks is that the Greek islands that come on the market are usually very large, quite expensive and out of the reach for most people who are looking for a second home, or even for a resort development, for that matter,” Krolow told the Athens News.

 

Regardless of an island’s size, once you get over the 1.75 million euro price tag, the pool of potential buyers dries up, said Krolow, whose company lists 16 Greek islands on its website.

From his experience, Vladi finds that most island shoppers buy for “emotional rather than economic reasons”.

 

Since he made his first deal in 1971, Vladi, whose private island firm is based in Hamburg, has sold well over 2,000 islands. As he says, “the great majority” of island transactions has been between about 140,000 and 560,000 euros, with the average price being about 210,000 euros.

 

This being the case, he boldly asserts, “if you can afford a car, you can afford an island”.

His firm currently has about 125 islands on the books, four of them in Greek waters.

According to the listings of Crete firm Ktimatoemporiki, the building coefficient - the proportion of a property that may be built upon - is 20 percent for islands.

 

This limitation, as well as other strict guidelines designed to protect the fragile ecosystems of islands, mean that not all private islands are viable commercial investments.

“If you are going to spend $20 million [15m euros] on a property, you need to ensure that the numbers work,” Krolow said.

 

All these factors see to that Greek islands tend to sell much slower than those in other countries, Krolow said, adding that his company has located potential buyers for Greek islands who ultimately dropped out “because they weren’t able to do what they wanted”.

 

Nonetheless, the Greek island market continues to attract interest, predominantly from within Europe.

 

While Krolow pointed out that smaller islands do tend to be bought by people looking for a second home, having the financial wherewithal to buy an island is one thing, but constructing the necessary infrastructure for it is quite another.

And, as he pointed out, the more vacant and undeveloped an island is, the more attractive it is to buyers.

 

“The people who buy these islands tend to be entrepreneurial and want to put their own mark on the island,” he said. “They want a clean canvas.”

 

Other obstacles also exist in Greece where any island development requires the authorisation from the ministries of defence, environment and culture.

 

As Pedro Arez, a senior island broker at Vladi’s company, told the Athens News, island purchasers face the daunting task of securing anything from 25 to 30 permits from the Greek authorities.

Nevertheless, the islands of Greece still attract the interest of serious European businesspeople, whose presence in the country would bring “prestige, jobs and capital”.

 

The Greek archaeological service must also certify that the island has no ancient remains, while the forestry service may also become involved if the island is wooded.

 

And, islands on the eastern extremity of the Aegean may be out of bounds for foreign owners, as legal restrictions exist on foreigners owning property in the frontier border areas with Turkey.

 

•  Vladi Private Islands, www.vladi-private-islands.de
•  Private Islands Inc, www.privateislandsinc.com
•  Ktimatoemporiki Crete, www.ktimatoemporiki.gr

 Ayios Athanasios

Price 1.5 million euros Size 0.01km2

Situated in the Gulf of Corinth, about 2.5km from the city of Itea - and a short distance from Delphi, the ski resort of Parnassos and the port of Galaxidi. This tiny island consists of pine and olive trees and a small sandy beach on its northwestern side

 

Price on request Size 3.03km2

Located in the Saronic Gulf, Ayios Ioannis is the most northerly island in the three-island Diapori chain currently up for sale. It takes two hours to reach from Athens, which includes a 15-minute boat ride from the fishing village of Korfos. It is currently home to a herd of goats. Described by its brokers as “untouched and raw”, about half of the island’s surface is flatland, making it suitable for residential development

 

Price on request Size 0.36km2

The smallest and southernmost of the Diapori triplet of islands

 

Price 8 million euros Size 5km2

Under the Ithaca municipality’s authority, this mountainous and wooded island is described by brokers Private Island Inc as one of the last undeveloped spots in the Ionian Sea and perfectly suited for those who treasure their privacy. The largest on sale in Greece, the island boasts sheltered bays, three large natural ports, high vantage points with 360-degree views and craggy outcrops

 

Price 15 million euros Size 1.21km2

Ayios Thomas is the middle island in the Diapori chain. It is a 20-minute water taxi ride from Corinth and 45 minutes from Athens

 

Price on request Size 0.24km2

If you own an island, you can afford a helicopter, which will get you to this island from Athens in 40 minutes. Located between Evia and the mainland, it consists of rolling hills, small coves and age-old olive groves, and is accessible via a wharf and network of paths. It has two homes in need of repair

 

Atokos

Price on request Size 4.45km2

This scenic and relatively large island in the Ionian is located 6.5km east of Ithaca and south of Lefkada and consists of high cliffs, caves, four pebble beaches and many natural harbours. It rises to 334m in height. At present it hosts a herd of goats tended by a shepherd. The island has a house and a church

 

Price 562,000 euros Size 0.13km2

This Ionian island, seemingly the cheapest on the market, is located 50m from the southeastern end of Ithaca. Nicely elevated, it is covered in pine, poplar and wild flowers. A concrete pier on its western side provides anchorage

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ATHENS NEWS 30/08/2010, page: 6-7