Second, third or fourth homes
Most leisure island real estate is at the heart of the additional home market for UHNWIs, representing the ultimate "get away" from city living. Additional home purchases on islands are nearly always discretionary, made when economic conditions have created spare cash. As such, islands with large second home markets did suffer disproportionately in the global economic downturn.
The Hawaiian islands and Martha’s Vineyard stand out as attracting the most UHNWI second home owners globally, benefitting from their proximity to the United States with its 70,485 individuals with assets in excess of $30m.
The Balearics have a similar role for European UHNWIs, where the likes of Ibiza and Mallorca have long established second home markets. Ibiza attracts a diverse range of sophisticated buyers from the Spanish mainland and across Europe. This diversity of buyers has helped it to quickly recover from recessionary lows. Villa prices in the best spots have already returned to their pre-peak levels.
In cooler climes, leisure islands are more likely to be "invisible". The Scottish islands of Islay, along with neighbouring Jura in the Inner Hebrides, attract UHNWI second home purchasers. Country pursuits are at the heart of these islands’ appeal: Islay is famous for its woodcock, while Jura is renowned for its stalking. Both islands attract wealthy visitors from around the world, some of whom chose to make a more permanent investment. On Jura, a former city banker purchased the 14,000 acre Ardfin Estate in 2012, comprising a 16 bedroom mansion, seven uninhabited islands and 10 miles of coast.