Island life but with city convenience
Near to shore, they are connected to the mainland by road and easily commutable to major cities and conurbations. Our analysis of UHNWI holdings of island real estate reveals a huge bias towards city-linked islands, and is concentrated within the United States (see Table 4 overleaf).
A property on this kind of island provides the benefits of island living; a peaceful environment, beaches, golf courses, and sea views, but with the city and all its amenities, business opportunities and infrastructure just a bridge crossing away. In the US, property in the premier "city-linked" island real estate markets can cost up to four times that on the neighbouring mainland (see Table 4 below).
The popularity of city-linked islands is not just a US phenomenon. Some islands in Hong Kong’s harbour and within a ferry or power-boat ride of the city are starting to enjoy more popularity and have the potential to become desirable boltholes or commuter islands. The model has been replicated in Dubai with the man-made Palm Jumeirah, one of the world’s largest artificial islands.
Extending to 5km2, it has more than doubled Dubai’s coastline. The market on the manmade island has rebounded strongly from Dubai’s market downturn as the development establishes itself and retail elements come on stream. Prices have increased by up to 50% in the last year, making it one of Dubai’s top performing sub markets.