The market for buying islands is heating up, with Bali recording one of the strongest rises in prime prices in 2014, according to research from Knight Frank. Online viewings of island properties for sale increased by 21 percent in 2014 compared with a year earlier, fueled by the Asian market where the concept of a second home or 'lifestyle' property is growing.

Australians that are seeking to invest in island destinations look towards Fiji and the Whitsundays, said the firm in its latest 'The Island Review' report which assesses current property market conditions across the world's top island destinations in 2015. The report states that while celebrities and the ultra wealthy are assumed to be the main buyers of private islands, it's actually governments, NGOs and conservationist groups competing for ownership. Also, less than 10 percent of islands provide tax benefits for their residents. Currently, 65 percent of private islands for sale are priced below US$500,000.

"While some islands and archipelagos are back on the radar of second home buyers, others are still struggling to see sustained price growth following the financial crisis," the report states. "Asian interest in second home and lifestyle purchases will strengthen in the next five years but there will still be a desire to generate an income from their acquisition via a commercial enterprise such as a holiday let or small vineyard."

And if you've always dreamed of buying an island but can't spend a fortune, the report suggests looking at Greece. "As the long-term ramifications of Greece's financial bailout play out more fire-sales of Greek islands are expected," it states. Greece introduced its first permanent property tax only last year, "which for some owners has made private island ownership more burdensome."

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A tropical island is on the market