Click here for Part One

The process of transforming a pristine, untouched island into a hospitable place for vacation homes, resorts or even permanent residences can be an intimidating task, but as the first instalment of The Basics of Private Island Development has shown, there are a variety of resources available to help ease the process. Your local agent is an invaluable source of contacts and information, and from obtaining permits and utilities to clearing, filling, and landscaping an island, all aspects are simplified by learning as much as possible about the challenges of island development, researching portable, “green” technologies, and cultivating helpful relationships with your new neighbours. Some investors may wish to stop at the partial stage of development, which adds a significant premium to islands for resale, but much work remains for those seeking additional profits or who intend to use the island personally. This article will cover constructing residences, docks, and the growing trend of private island airstrips and helipads, and the environmental and financial considerations associated with these developments.

As the CEO of Private Islands Inc., Chris Krolow has watched the island industry’s attitudes towards development evolve. “There’s a growing realization that it’s in everyone’s best interests to develop responsibly,” he says. “It’s an unfortunate fact that there are now islands on the market that are so over-constructed, they’ve lost the natural feel that makes private islands attractive in the first place.” This doesn’t necessarily limit what may be constructed, he suggests, but how the natural environment is taken into account. “Design your villa to fit within the forest grove on your island, and you have a beautiful, ‘Robinson Crusoe’-style island getaway,” says Krolow. “The most popular new types of developments are, without a doubt, highly eco-friendly. Preserving the natural character of the island is not only better for the planet, but makes properties more appealing if you want to resell.” Part of this, he suggests, is due to the individualistic personality traits common to island owners. “When an island is over-constructed, there’s little room left for future owners to make their mark. And that’s a big part of the private island allure.”

Excessive development carries hidden hazards for the island’s ecological stability, as well. An isolated and relatively self-contained ecosystem, every aspect of the island’s wilderness has evolved to fulfill a unique function in maintaining a general health and balance. A prime example, the intricate tangles of mangrove forests that encircle many properties have often been removed entirely to make way for sandy beaches, and were long considered the bane of constructing in southern areas. However, total eradication of these forests may actually endanger the future of some islands. The root systems of mangroves not only act as a habitat for a variety of wildlife such as water birds and fish, but function as a barrier against the tumult of the surrounding waters, preventing waves and storm surges from eroding the island’s coastline. In anticipation of the increased sea levels and hurricane activity predicted in climate-change scenarios, countries ranging from Italy to Indonesia are now replanting these much-maligned forests to take advantage of the natural protection they offer. Similarly to mangroves, native trees and other deep-rooted plants are increasingly being preserved during development by owners who are wisely conscious of the dangers posed by erosion.

The growing culture of environmental awareness among private island owners doesn’t mean that new construction is restricted to primitive thatched-roof huts, however. Proving that “eco-friendly” and “high-tech” aren’t mutually exclusive concepts, the new wave of easy-to-transport modular residences are bringing a touch of luxury to “green” living. Based out of Germany, the TomaHouse Tropical Villa is striking prefabricated home with a variety of sizes and models, starting at about Euro $850 per square metre. Merging style and substance, the elegant, Asian-inspired appearance conceals a grid of aerospace-rated aluminium described as “virtually indestructible”. Designed to withstand natural disasters from hurricanes to earthquakes, the surprisingly sturdy TomaHouse can survive winds exceeding 260 km/hour, and earthquakes measuring an impressive 8 on the Richter scale. Perhaps a more suitable option for colder climates, another company offering a range of attractive, earth-friendly modular cabins is Noble, who employs natural, low-impact materials free of toxins and chemicals. Starting at just $40 per square foot for the building kit, Noble Homes are also a cost-effective option, and can be designed to incorporate solar or off-grid power systems. With the addition of the wide range of high-end solar or all-natural home products now on the market, any modular island house can feel truly luxurious.

Doug Ingersoll is an island broker and also an owner in Belize, a beautiful Caribbean Sea country at the epicentre of the eco-tourism movement. With a boom in new resort construction and steadily improving infrastructure on the mainland, these plentiful “cayes” around the Barrier Reef are seen as some of the hottest investments in the island market. And with a majority of the islands coming in either a partially-developed or natural state, Ingersoll has an insider’s understanding into just how much value full development can add. “Filling alone can potentially add US $80,000 of value to each acre of one of these cayes,” says Ingersoll. “And with the addition of utilities and a dwelling, that figure can double or even triple.” A variety of types of dwellings are common on Belizean islands, and the cost of construction ranges from about US $60-$150 per square foot dependent on quality, he says. Often used by locals and low-maintenance island owners, another available option are prefabricated homes built by Belize’s thriving Mennonite community. These small, basic wooden houses are simple to assemble, and generally cost between US $14K-$25K, excluding construction and transportation. “There’s the potential for virtually everyone to fulfill their dreams in Belize,” says Ingersoll, who together with his wife, is planning to eventually build a secluded, romantic couples resort on his own caye.

The most established private island market, the Bahamas is another country in the midst of a growth spurt in development. At the closest point, these 700-odd islands lie within a 45-minute flight of Florida, and this convenient proximity to the USA and a stable, Commonwealth government contribute to the popularity of the Bahamas as a location for second homes and tourism projects. With these investment advantages do come certain requirements, however; speculations on empty land by non-citizens are discouraged, and potential buyers of untouched islands must submit development plans to a government investment board for approval prior to purchase. Even with this caveat, prominent Nassau private island broker Kevin Cross has seen a dramatic appreciation in island market values over the last few years. “The Exuma chain is very popular,” he says, “but the appreciation has been significant across the country. Some islands have more than doubled in price within the span of just a year or two. There are few- if any- other types of real estate that regularly see such remarkable gains in so short a time.” However, there are still areas in the Bahamas where investors can find comparative deals, he says. “A little off the beaten path, the Abacos are really the only area where it’s still possible to find islands priced like the 55-acre Big Fish Cay, on the market for just US $2.4M.”

With construction on undeveloped Bahamas islands obligatory for foreign investors, the resources required should be taken into careful consideration by prospective buyers. “While the cost involved in building on private islands is highly variable, the amount per square foot is largely a function of quality, and the distance from urban centres on the mainland,” advises Cross. Bearing in mind that style and the proximity of labour and materials factor into the cost, he estimates that for a single residence, a minimum of US $400 per square foot should be expected, with high-end resort developments running upwards of $1000. “Similarly to islands in the USA, construction costs for Bahamas islands are often about twice that of building on the mainland”, he says. “For example, a reasonable estimate for building a modest home and a dock could be about half a million dollars.” He suggests that when looking at properties, prospective buyers should consider the terrain of the island, and make certain that there is enough level, build-able land available for the desired development. Cross also cautions that in the often low-lying Bahamas, ensuring that an island has sufficient water depth for dockage is particularly important.

Construction of a dock on an island differs from that of mainland property in that it isn’t a luxury or afterthought, but a necessity that the safety of the island’s users will depend on. When establishing a location, several critical factors should be taken in to account: wind, water depth, available natural harbours, and the stability of the connecting part of the island. A dock should be placed on the side of the island with the most shelter from the wind, and if the water depth allows it, in a natural harbour or cove. Water depth is particularly important for dockage- for example, a 20-ft boat will require at least five feet of clearance to safely dock without risk of getting stuck or damaging the hull. For a smaller craft, such as a small speedboat, three feet may be sufficient. If the water depth deepens significantly within 100 feet of the island, a longer type of dock may be employed to allow for larger sizes of boats. While some outside assistance may be required for traditional construction, a wide variety of new modular styles like the Mod-U-Dock may be assembled in a short period of time with minimal labour.

A step above the omnipresent dock is the construction of private island airstrips and helipads, two accoutrements that aren’t always mere luxuries for owners. Air transport may be essential for islands in very remote regions like Alaska or parts of Oceania, or that are surrounded by very shallow or habitually rough water. But in most cases, air travel simply dramatically reduces travel time. For the owner of a remote Bahamas island who happens to reside in New York or Washington, it can mean the difference between a pleasant two hour flight, and spending the greater part of a day negotiating airports and a long sea voyage. If an owner’s harried schedule permits only a rare few days of vacation, this difference in travel time can have a disproportionate impact on the island’s usability.

Of the two main options, helipads are generally the simplest to create and can have a low or negligible environmental impact. Able to be built on top of residences or in small areas of land, they are becoming fairly common and construction tends to run from US $40-$200K. New modular designs have greatly reduced the building costs and this may off-set the increased prices of helicopters when compared to many types of small planes. On the other hand, not all islands are suitable for more construction-intensive airstrips. In addition to requiring planning permission that may not easily be granted, at least 3000 feet of clear land with stable soil and not more than a 2% grade is strongly advised. Relative to the amount of clearing, filling and levelling that the island’s terrain requires to achieve this, costs may vary from about $100K to half a million dollars or more. As with most types of developments, the convenience helipads and airstrips provide should be carefully weighed against the associated costs- both financial and ecological.

The many forms of island development are all about balance, according to Krolow. “There’s a misconception that you have to be in one camp or the other; to believe in an unrestricted construction free-for-all, or think that every island should be turned into a wildlife sanctuary. That kind of black and white thinking just isn’t the human reality.” He suggests that a responsible approach is usually a preferred choice for those who undertake developments, and that there are both intangible and pragmatic reasons for this attitude. “In my years in this business, I’ve only rarely met an island owner who wasn’t first and foremost a nature lover. The prestige or celebrity factors tend to be played up in the media, but the true appeal is in the ownership of the kind of unspoiled beauty often impossible to find on the mainland. Of course, island owners want to personalize the islands and make them liveable- but not without retaining that wild character.” By doing so, the investment value of the island is also preserved, as the vision of paradise sought by many potential buyers generally isn’t that of a mansion and landscaped garden- nor, he says, is over-development necessary. “As technology progresses, we’re able to do much more with far less impact, and modular homes and off-the-grid power are a perfect match with private islands. ‘Eco-friendly’ isn’t just a buzzword- it’s the future.”

This article is part of a two part series. Click here to read Part One

Filed under: Island Industry