“Interested buyers who are looking for a reasonably priced top property have unfortunately arrived too late,” said Florian Fischer, Managing Partner of Engel & Völkers on Ibiza. Prices for exclusive holiday properties on Ibiza have been rising considerably since the end of 2012. Engel & Völkers registered price increases in this segment of as much as five percent in 2013. As a result of the higher prices and an increase in the number of transactions, the two Engel & Völkers Shops on Ibiza registered a growth in revenues in 2013 of around 20 percent over the previous year. With this very good financial result, Engel & Völkers reaffirms its position on the island as market leader in the premium segment.
Florian Fischer sees the reasons for the property boom above all in the global popularity and attractiveness of the Ibiza brand: “The island is one of the hotspots where cosmopolitan clients are particularly fond of acquiring a second home. Demand has risen sharply, especially in the top segment for properties starting at 1 million euros.”
According to Florian Fischer, most buyers are less concerned with tax-related and economic aspects in the majority of cases. “It is the unique way of life and the undeniable charm of the island that entice people to look for a holiday home on Ibiza,” said Florian Fischer, describing the positive attributes associated with the Mediterranean island in the eyes of many of his clients.
Magnet for celebrities and the cosmopolitan set
For many decades now, artists and creative types from around the globe have been inspired by Ibiza. It is regarded as the epitome of chic living and luxury, with a world-renowned club scene too. The combination of a marvellous climate, beautiful beaches, a traditional Mediterranean lifestyle and its social and cosmopolitan atmosphere, famous the world over, is resulting in a continuously growing number of holidaymakers (+5 percent in 2013 over 2012) and has turned the island into one of the trendiest places to own a second home. “Discretion is a top priority for us, which is one of the reasons why the island is in particularly high demand amongst famous personalities from the worlds of business, culture, media and sport,” revealed Florian Fischer. In his estimation, it is still a good opportunity to invest in a high-end residence in spite of the rising prices: “The good land plots are becoming increasingly rare, and prices will continue to rise even further as a result. Buyers who are looking for a secure investment with potential for appreciation in value should avoid bargain-hunting in any case.”
Ibiza lifestyle is the key motivation to buy for international home buyers
The most sought-after locations include Ibiza Town, Es Cubells, Cala Jondal and Talamanca, as well as Santa Gertrudis and San Carlos located inland. Traditional finca properties typical for the island and contemporary villas are equally in demand as luxurious apartments and penthouse apartments. In the absolutely prime locations, entry prices all over the island are approximately 2 million euros. If everything is right in terms of location and appointment standard, prices in the double-digital millions region are being paid in some exceptional cases. “The most important motivation for acquiring a property on Ibiza is still the relaxed way of life to be had on the island, combined with world-class entertainment, spectacular beaches and a vast array of recreational activities on offer. For many interested buyers, the purchase price is of secondary importance,” said Florian Fischer. Nevertheless, buyers are not willing to accept excessively high prices. “This is due to the fact that interested clients from abroad are very well informed about the local property market,” stressed property expert Florian Fischer.
Buyers from the German-speaking world dominate the market for holiday properties, followed by clients from Benelux, the UK, Italy, France, Russia, and other non-EU countries. In 2013, the average age of buyers of Engel & Völkers properties was 47 years old, making Ibiza a relatively young location.
Improved flight connections and more berths for superyachts
A number of new openings of top-class restaurants, hotels and beach clubs such as the Lío, Nikki Beach and the Harbour Club are ensuring that the brand continues to become ever more attractive for the global clientele. Significant developments to the island’s infrastructure are also creating additional new incentives. Improved flight frequencies and connections, especially during the winter months, are giving a new stimulus to the market for second homes. Private air traffic also rose once again last year by 19 percent, placing Ibiza in the Top 4 airports in the whole of Europe ranked in terms of the number of private flights. With regards to yachting too, the island is positioning itself more and more as a leading force in the Mediterranean. Ibiza has made a significant impact with the redesign of its former ferry port, and managed to create seven of the desirable boat moorings for superyachts with a length of up to 110 metres.
Outlook: Market upturn set to continue in 2014
Florian Fischer also assesses the future development of the property market positively: “We are very optimistic for 2014 and base this view on the sustained strength of the Ibiza brand, which is promoted both locally and globally, as well as being reinforced by many well-known personalities. Strict building regulations will continue to make sure that the authenticity of very large parts of the island remains a unique characteristic of Ibiza – and that top estates remain a rare commodity.”
Please click here for the full market report published by Engel & Völkers Ibiza: https://www.engelvoelkers.com/wp-content/uploads/2014/03/EV-Ibiza-Market-Report-2014-small.pdf