Corona Daily 202: New Luxury

In this daily column, I have talked about businesses that have boomed during the pandemic. One of them is the selling and renting of ISLANDS. Mr Krolow runs Private Islands inc for the past 22 years. 2020 was the busiest year for his company. He said he was flooded with calls, some from “young men hoping to start their own country”.

Before the pandemic, an island was a vanity purchase, a toy for ultra-rich elderly males who already owned yachts and jets. Now the new wave of island buyers is driven not by ego, but the desire to escape the virus. Some wealthy clients are so paranoid they ask for large agricultural plots on the island so as to be self-sufficient.

The billionaires who expect the pandemic to last long are using prefab homes for new construction. The prefab is put on the pallet and a helicopter drops it on the island.

For complete isolation and privacy, sometimes staff stay on a smaller island close by. By turning the lights on, the owner can summon them in small boats.

The island buyers want their safe haven to be peaceful as well. Recently a lovely island in the eastern Mediterranean, a real bargain for $7.4 million, didn’t find buyers because both Turkey and Greece have claims on the surrounding waters.  

Some of the well-known populated islands were bought in previous centuries. The Dutch had purchased Manhattan in 1626 for $24. As to the islands offering protection, this is what Shakespeare wrote in Richard II.

This fortress built by nature for herself, against infection and the hand of war,

Which serves it in the office of a wall, Or as a moat defensive to a house,

Against the envy of less happier lands, this blessed plot, this earth, this realm, this England.  

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British billionaires were obsessed with Greek islands in the past. Now they prefer isolating in the Seychelles or the Irish sea. North Americans have shifted their preference from the South Pacific to Bahamas, Belize and Panama. Bahamas is close to the USA, has no taxes, is economically and politically stable, and offers speedy internet.

Travel restrictions have been one of the problems for brokers as well as buyers. In July, a 157-acre Horse Island off the coast of Ireland was on the market for £ 5 million ($6.5 million). An unnamed European man fell in love with the scenery, the seven houses, a pier, helipad, gym, tennis court, all of which he watched on video. The package included own electricity, water and sewage systems, three beaches, and farming pastures. The mystery buyer bought the Horse island without visiting it.

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Twitter’s owner Jack Dorsey now lives on an island in French Polynesia, thousands of miles from the USA. He blocked Donald Trump while enjoying the safety of his island. Kim Kardashian, a media personality, spent her 40th birthday with close family and friends on an island near Tahiti, and for the benefit of the world shared the celebrations on Instagram.

Yoshihisa Midorikawa, a Tokyo entrepreneur, bought Iseshima island, which was used for the G7 summit in 2016 after a single visit. “I wanted my own country where I wouldn’t have to worry about becoming infected with the coronavirus”, he honestly said.

Larry Page, Google’s co-founder, has chosen a modest option. He lives on his $46 million super-yacht based in Fiji. Fiji has introduced a ‘Blue Lanes’ scheme which allows yachts to enter Fiji, and the owners can quarantine on their own yachts or boats. So far, nearly 100 boats have entered Fiji under the scheme.

Maldives with 1200 small islands is another attractive destination. It recently opened Ithaafushi-the private island-spread over 32,000 square meters. It is rented out for $80,000 a night.

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The information presented here is of academic, rather than practical, interest. If you feel upset about the island buying business, I will leave you with one thought: the size of your house and the size of your happiness are not necessarily correlated.

Ravi