If you've watched any of the hit American series Lost recently, about a group of people stranded on a deserted tropical island after a plane crash, you probably fall into one of two categories of viewers. Either you are cancelling that trip you had planned with the in-laws to Hawaii, or you keep wondering where on earth the unfortunate passengers could have crashed that didn't already have at least one MacDonalds restaurant, a holiday resort full of sunburnt British tourists and a bar boasting a full English breakfast and Sky TV. Any minute now, I bet you're saying, they're going to bump into Sandra, their perky tour guide, and the rest of the Club 18–30 crowd. Surely such an unexploited place can't really exist in this Easyjet era of cheap flights and package deals? Well, if you're prepared to go a little further afield, coming across a palm tree-laden dot in the midst of sparkling turquoise sea is much more of a possibility, and much more of a reality with flights becoming continually cheaper.

And next time someone turns to you and asks what you'd take with you to a deserted island, forget names of favourite books and inflatable life rafts; nowadays anyone with an eye on the property market would bring along a pot of cash to invest. Owning property on one of these unspoilt paradises is becoming a serious option for canny Brits who are following the lead of American and German investors and taking advantage of the number of developers offering luxury accommodation for less than most well-known mainland destinations in Europe.

Perhaps the ultimate place to get away from  it all, where the scale of things are smaller, and the pace is generally slower, a tropical island escape has to be at least in the top five choice of Brits' idea of a relaxing holiday. From getaway favourites like Malta, to more off-the-radar islands like Cape Verde, before you begin your island-hopping, here are some of our top choices for island investments.

THE CARIBBEAN
All right, it seems an obvious choice, but the Caribbean remains home to some of the top potential property investments, and as for lifestyle, you can take your pick from the list of well over a hundred inhabitable islands and cayes (a small, low island consisting mostly of sand or coral) on offer. Ephrat Yovel, from Bayview Properties, says, "The attractiveness of the Caribbean islands to Brits is due to the relaxed way of living, excellent year-round weather, as well as its proximity to beaches and relatively inexpensive real estate, though it is appreciating. Most are English language speakers and the legal system is very effective." She adds, "The atmosphere and lifestyle are much influenced by the heat and proximity to the beaches, and are therefore very informal and easy-going. In the former British colonies there is still a certain degree of respect to all things British." The current day Caribbean islands are separated into island territories, some of which retain their British dependency, like Anguilla, the British Virgin Islands, the Cayman islands and Monserrat. Others, like Guadeloupe, Aruba and Puerto Rico,  are considered parts of France, the Netherlands and the US, while yet more, such as Barbados and St Lucia, are independent.

Barbados and St Lucia are undoubtedly two of the better known Caribbean islands, located at the easternmost position of the Lesser Antilles chain about 375 miles north of the coast of South America. Direct flights are available to Grantley Adams Airport in Barbados from Gatwick with major airlines like Virgin. The flight takes about eight and a half hours and costs around £630 per person during the off-season, but various package deals have been springing up with travel agents, so it's worth looking around. Pauline Scrace, from estate agency International Horizons, says, "There have been high returns on property investments, and over the last three decades values have continued to rise steadily, something which is expected to continue. "High quality real estate developments and the most secure investment in the Caribbean and there is excellent short-term and long-term rental potential." Barbados is also set to host the 2007 Cricket World Cup, predicted to further augment the property market. While properties range from anywhere between £135,000 and £4 million the average price is about £550,000.
 
One main difference between the British and Barbadian tax systems is that stamp duty and a transfer tax is paid by the vendor rather than the buyer. Stamp duty is 1 per cent of the property and the transfer tax is 7 per cent. You could be liable for tax on capital gains when you sell the property, although the rate is lower than in Britain. The jet-set crowd has always had a presence in the Caribbean, and there are a smattering of high-end private villas that anyone with millions can own. Necker Island, for instance, is up for sale for US$24 million (£13 million). "Barbados is always going to be attractive to buyers. There are so many exclusive properties on the west side which are going to attract the select few, to whom money is no object", explains Scrace.

But it's not just aged rock stars and top executives who are buying up luxury properties, in fact around 70 per cent of buyers are looking for homes at the cheaper end of the market and most experts advise that property inland or on the East Coast, the 'Atlantic side', are going to be cheaper. St Lucia is not developed to the same extent as Barbados, Scrace suggests, and offers "raw beauty", although she points out that development is occurring. St Lucia is served by two airports: Hewanorra International Airport located on the south side of the island at Vieux Fort and Vigie Airport located near Castries. International flights land at Hewanorra, while flights from within the Caribbean generally land at Vigie. Flights are available direct to St Lucia through British Airways and Virgin from Gatwick at around the same prices as Barbados.
 
The average cost of a three-bedroom home in St Lucia hovers around the £220,000 mark and, aside from the fact that the crime rate in St Lucia is one of the lowest in the Caribbean, Scrace thinks property investments will prove a lure to British buyers. "There has been a noticeable increase in foreign investors, perhaps taking advantage of property prices being up to 60 per cent cheaper in St Lucia than some other Caribbean islands", Scrace reports. Near  to  St Lucia  and  Barbados,  St  Vincent  and  the Grenadines have also been receiving exposure on property shows and thanks to the exploits of some of its more famous visitors like Mick Jagger and the various other celebrities who flock to the luxury private island of Mustique. The archipelago is made up of 12 major islands (and 28 minor cayes) ranging from the smallest Mayreau with only 300 inhabitants to the abovementioned Mustique, and the main island of St Vincent. St Vincent is the most northerly island, with a population of around 15,000. The country's capital, Kingstown, is the location of the international airport which does receive flights from the UK, although another international airport is scheduled to open in 2010. Because of the variation in development across the Grenadines, it's hard to put an average price tag on properties. Canouan Island, for example, is home to Donald Trump's Trump Island Villas, at the top end of the price range, while companies like Viviun International sell a split-level duplex in Kingstown Park, St Vincent, with land for around £100,000.

Finally, the Bahamas are synonymous with tropical island luxury. With a one-bedroom flat currently on the market for around £158,500, getting a bargain isn't going to be for the faint-hearted. For a cheaper alternative to buying property, Land in the Bahamas is a comapny that currently sells building plots in the Bahaman island of Great Exuma from £14,500.

Overall, investing anywhere in the Caribbean demands a lot of research, as lucrative property investments are distributed unevenly across the islands. While one may see prices tripling over a five-year period, another will have experienced a stagnant market for decades. Yovel advises caution, saying, "Caribbean islands are usually a good investment proposition, though real estate prices and offerings differ vastly from one to the other. In some, like Curacao, Anguilla, Aruba and Nassau, property prices have already rocketed."

MALTA & GOZO
Malta is one of a few places in Europe, along with Cyprus and the costas in Spain, that has always enjoyed a steady flow of tourists and a close association with the UK since the 1960s.

Malta has always welcomed British and offshore investors with healthy tax incentives and it helps that the majority of Maltese speak English. The island's natural beauty and the mish-mash of cultural influences in its capital, Valletta, have been a big pull for Brits, who make up around 40 per cent of the tourist trade in the country.

Vanessa Lupi, from Frank Salt Real Estate, thinks the property market is also starting to heat up for foreign buyers, "During the last three years, property purchase for investment has seen dramatic increases", she says. "Traditionally, Malta property appreciates an average of 10–16 per cent every year, and a number of high profile developments have come on the market, including Portomaso, St Angelo Mansions and Tigne Point, all of which are marina developments located along the island's unique and historic harbours."

Indeed, property prices have risen by 16 per cent over the last year, according to the latest property prices Index compiled by the National Statistics Office. Geoffrey Ciantar, of Dhalia Real Estate, says this is a natural progression as opposed to a short-term response to EU membership, which was granted in 2004. "I do not think this is a direct effect from Malta joining the EU or Malta's plans to convert to the euro in 2008. "Capital appreciation on property is still on the same steady rate compared to previous years only that last year we experienced a slightly higher one." Ciantar adds, "It was always easy for non-Maltese to buy property in Malta as long as they satisfied certian critera. This has not changed."

Areas like Sliema and St Julians, followed by St Paul's Bay and Marsascala, are the most popular with buyers. Harbour areas are going to be popular with the buy-to-let market, as are any seafront apartments.

Ciantar tips the south of the island as the up-and-coming hotspot. "The south of Malta is becoming more sought after due to lower prices. [The nearby island of] Gozo also has a lot to offer as properties are still relatively cheap there. "Prices in Malta vary considerably from one street to another and from one village to another. You can find a beautiful three-bedroom finished apartment in the south of Malta for LM60,000 (£95,500), while a similar apartment may cost  you LM120,000 (£190,800) in a side street in Sliema. If you shift the same apartment to a seafront spot in Sliema or St Julians it will set you back around LM250,000 (£398,000)." Lupi adds, "The northern part of the Island, namely Bugibba, St Paul's Bay, Qawra and Mellieha, are very sought after areas for holiday apartments. Rental return is also on the increase, presently at 3–4 per cent every year. Farmhouses with a pool and views on Gozo are also extremely popular."

CAPE VERDE
Situated in the Atlantic Ocean to the west of Senegal on the African continent, Cape Verde is an archipelago made up of ten major islands and five smaller islets subdivided into two separate groups known as the Barlevento or the Windward group and Sotavento or the Leeward group.

Once an infamous slave trading post, these days Cape Verde's economy is mainly based around the tourism and the service industry. Property in Cape Verde has been on the scene for a couple of years now, and so the islands have plenty to offer the eagle-eyed investor. From a property perspective the main island of interest at the moment is Santiago a tropical island perfectly set up for some serious pleasure seeking. The Sambala resort is the island's first government approved tourism development and when it has been completed it will offer a mix of one-, two- and three-bedroom apartments, townhouses and private villas surrounding a 36-hole golf course, hotels and a marina. The off-plan properties available in the first stage of development are now completely sold out.

According to a spokesman for the company behind the development people who invested early are rubbing their hands with glee at the prospect of some healthy returns. "Investors in Sambala are already seeing an increase in selling prices on their properties of up to 44 per cent in less than 12 months, while second homeowners eagerly await the first hand over of keys due this November."

Although the first phase of development, Sambala Village, has now sold out the second residential phase, Vivendas de Santiago, has been released early and is now available. Vivendas de Santiago offers a mixture of 41 villas and 196 townhouses of varying styles and sizes alongside shops, restaurants and recreational amenities. Prices start at 165,000 euros off-plan.

THE SEYCHELLES
Think of the Seychelles and instantly images of a picture postcard paradise of the type you might only experience were you lucky enough to win the top prize on a 1990s television game show. However, with cheap air travel and the popularity of international property investment prompting a rash of developments all over the world you don't have to be the reigning Catchphrase champion to share a piece of the pie. 

A country in its own right, the Seychelles is an archipelago in the Indian Ocean made up of 41 islands, 33 of which are inhabited. Mahé is the largest of these and is home to the country's capital, Victoria, and around 80 per cent of its population. The group of Islands that surround Mahé support the majority of the remaining population. The country has a tropical climate with a cooler tourist season that runs from May through to September and is fortunate to lie outside the tropical cyclone belt. While the economy that has grown per capita over the last 30 years, according to the World Bank, the Seychelles is also the most indebted country in the world.

When the tourism sector suffers, so do the islands, so the Seychelles government are busy implementing plans to reduce this dependence by promoting small scale manufacturing and fish farming to its population. When it comes to hot-spots for property the island that tops most people's wish-lists is Mahé Island. Mahé is a beautiful and dramatic island with 70 beaches all with a unique character of their own. In coastal regions the Island's colonial past is evident and stunning old beachfront plantation houses are can often be found on the market at very affordable prices.

Buyers will find that prices range drastically on the island depending on where you buy. Property in exclusive resorts can reach into the millions but a four-bedroom beachfront villa in the North of Maha can be bought for £135,000. However, for the more ambitious, land prices are very reasonable, with 1,448 square metres in Mare Anglaise three minutes walk from the beach going for £6,500.

MAURITIUS
Mauritius is an island situated in the southwest Indian Ocean 900 kilometres east of Madagascar. The Republic of Mauritius also includes the islands of St Brandon, Rodrigues and the Agalega.In recent years the island has made a big effort to attract overseas investors and as such a lot of time and money has been ploughed into various property developments.

New legislation has been passed to allow foreigners to buy property on the island for the very first time. Until recently only those native to Mauritius were entitled to own real estate. There are some conditions: foreigners will be restricted to owning property in purpose built villages known as 'Integrated Resort Schemes' so that they do not price Mauritians out of the property market elsewhere on the island.

According to Vianna Murday, UK and Ireland manager of the Mauritius tourist board, Mauritius is quite simply the place to be. "Mauritius is constantly developing to meet the needs of its visitors. The country's sporting options, beaches, landscapes, history and cultural diversity make a getaway on the island the perfect option for anyone in need of rest, relaxation or adventure", she says.

The recent addition of a sixth weekly non-stop flight to Mauritius with Air Mauritius from London Heathrow has added to the island's accessibility and the development of the island's latest championship golf course will undoubtedly get a few investors cheque books twitching. Says Murday, "The addition of the golf course at Bel Ombre gives visitors even more reason to book their next holiday to the island as the opportunities to go 'beyond the beach' are bigger and better than ever before."

Apartments start at around the £500,000 mark. A villa could set you back as much as £2 million. However, high prices are unlikely to put off buyers. The first phase of 70 luxurious waterfront residences at exclusive L'Adamante sold out within six hours at the invitation-only sales launch in Port Louis, Mauritius last week.
 
So, being stranded on an exotic island isn't sounding so bad after all? Depending on budgets, there's something for everyone: Hard-headed investors can count the cash rolling in, while those dreaming of the ultimate laid-back lifestyle can look forward to beating the tour guides, MacDonalds restaurants and resorts full of sun-burnt tourists to the sugar white sands of their island escapes.

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For further information:
Bayview
International Horizons 
Land in Bahamas  
Viviun International Property Listing
Frank Salt Real Estate Malta 
Dhalia Real Estate Malta 
Cape Verde Sambala Developments
Savills (Seychelles) 
Seef Properties (Mauritius) 

Article published in August 2006