About 20 privately owned Greek islands are currently up for sale, some for the first time in generations, according to a report by the Wall Street Journal.
They are described as the ultimate dream property of the superrich, drenched in sunshine and surrounded by turquoise water.
Increased interest
These islands have rarely come up for sale, staying traditionally in the same families from one generation to the other. Yet, Greece’s private island property market is going up, strengthened by increased interest from foreign investors, a reduction in prices and alterations to Greek tax laws.
Renowned new island owners include Ekaterina Rybolovleva, the 25-year-old daughter of Russian billionaire Dmitry Rybolovlev. In 2013, a company belonging to a trust affiliated with Ms. Rybolovleva bought the Greek isle of Skorpios from Athina Onassis Roussel, the granddaughter of Greek shipping magnate Aristotle Onassis. It was on this island that, 45 years earlier, the tycoon married former first lady Jacqueline Kennedy. The island’s sale price was reportedly £100 million, or $158 million, yet a representative for Ms. Rybolovleva who confirmed the sale, wouldn’t do the same for the price.
Closely guarded secret
“After Skorpios was sold, and especially during the past year, there has been an intense interest in the islands’ market,” noted Alexandros Moulas, an agent for real-estate firm Savills . “An intermediate usually gets in touch with us and the name of the actual investor is kept as a closely guarded secret.”
Only a few islands to the south of Ms. Rybolovleva’s Scorpios, lies the islet of Oxia, which was bought by the former emir of Qatar, Sheik Hamad bin Khalifa Al-Thani. Last year, the Athens-based investment group Pima bought the 1,236-acre uninhabited island in the Ionian Sea off Greece’s west coast for almost €5.5 million, or $6.9 million. A representative for the investment group said that Pima acted on its own, yet two local government officials claimed that the group was buying on behalf of the former emir, who could be reached to comment.
Cost and amenities
The cost of buying such an island can run anywhere from a few million to more than 100 million euros, depending on amenities such as running water, electricity—and, sometimes, mooring facilities for yachts. Nevertheless, property experts claim that prices are down as much as 30% overall, following the crisis that hit Greece during the last years.
The majority of the 20 islands on the market are undeveloped while some have wooded areas and others are mostly rock. For example, Omfori Island, in the Ionian sea and a few nautical miles off mainland Greece is sold at nearly $62 million, has one small building on the island with permits in place to build on 20% of the 1,112-acre island, as mentioned in the real-estate listings site Private Islands Online.
6,000 islands and islets
Nearby Nissos island, is priced at about $6.8 million and can accommodate six houses of up to 130 square meters each, according to broker Savills.
Greece has more than 6,000 islands and islets, but island ownership has its own problems. Many of them aren’t suitable for development, and access can be difficult thanks to Greece’s restrictions on private seaplanes. Moreover, bureaucracy can be discouraging: To buy an island, up to 32 procedures are necessary, including background checks to ascertain whether a prospective buyer would pose a threat to national security.
Public beaches
Another problem for some buyers is that, in Greece, all beaches are public. That entails that, no matter how remote the island or how pricey, anyone with a yacht can show up, for a swim uninvited. Finally, more often than not, there are issues with the locals or the authorities.
Greek businessman Yannis Perrotis, managing director of real-estate company Atria Property Services, targeted on developing the small, privately owned island of Arkoudi in the Ionian Sea, almost a decade ago. He is considering constructing an exclusive super high-end resort with luxury villas, a hotel spa, a marina, and recreational and sports facilities, a project that is estimated to cost between $312 million and $375 million totally.
