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We are pleased to welcome you to our new edition of the Market Report 2020/21 and would like to keep you up to date with new figures, trends and statistics again this year. 2020 was the most unusual year most of us have experienced. The Covid-19 pandemic brought and still brings many challenges and has literally turned our world upside down. Despite the many changes and also restrictions, the average price per completed sale increased by 29% compared to the previous year.
This shows that demand in the luxury segment is increasing significantly and that interest in modern flats and beautiful country houses in Ibiza also remains stable. Due to the freedom gained in terms of work scheduling and home office, many of our clients plan to spend significantly more time on the island. Ibiza is and remains a diamond in the Mediterranean. The special energy and the partly still untouched nature attract people to the island especially during low-season - the ideal time to look for a property and to get to know Ibiza in its true essence.
We are pleased to present you with the latest news in this edition and, as usual, we are at your disposal on all channels.
Thank you for your support and stay healthy!
Covid-19 is also affecting the Balearic property market, but to very different degrees, always depending on the property segment and the buyer
clientele. According to the market analysis carried out by Sociedad de Tasación (an independent real estate valuation and market analysis company), the luxury segment has been very stable in terms of prices, as demand continues to remains very high. The Balearic Islands are focusing more than ever on sustainability and environmental protection: in a concept for the post-Corona era, the government is promoting sustainable management, creating stricter waste avoidance and e-mobility regulations. New centres for biotechnologies and artificial intelligence in the Parc Bit (Mallorca) and Centre Bit (Ibiza) business parks are intended to attract skilled workers to the islands and create new jobs for locals. Alternative energies are being expanded, the islands want to develop economically beyond tourism.
Private jet traffic increased in August and November 2020 despite the Corona pandemic.During the seasonal months, Ibiza Airport registered significantly more traffic compared to previous years. The airport registered a general air traffic very similar to the frequency of 1980, showing an unprecedented decrease in activity.
Nevertheless, 2.061 private aircraft landed and took off, 12.8% more than in August of the previous year.
The marina "Ibiza Magna" changed its name to "Marina Port Ibiza" in 2020, according to the mooring concessionaire. Ibiza remains one of the most expensive marinas in Europe. With an average price of 4.000 euros per day for a 55-meter yacht in high season, the Ibiza marina is about twice as expensive as Saint-Tropez, but still cheaper than Marbella.
The consequences of the Corona crisis for Ibiza's property market cannot yet be fully assessed. But in a first assessment, one rather believes in moderate effects. Reasons being: this is a medical crisis, and not a financial one, they say. However, some sales talks up to the closing have been purely virtual. Clearly, modern communication technology is changing buyers' visions of a future life on the island.
Optimism for 2021
Engel & Völkers expects stable price trends and active transactions for Ibiza in 2021. The dynamic buying activity and the continuous requests for video viewings during the previous year allows us to be confident and extremely positive. Many clients very much look forward to seeing their favoured flats and houses in person. As soon as falling infection rates and the vaccine make unrestricted travel possible again, buyers and sellers will continue with their property plans and close property transactions. Over the past year, prospective buyers have been very quick to sign contracts.
This proves once again that the Balearic Islands continue to be popular with international buyers as a safe haven for real estate.
Despite the Corona crisis, the demand for high-end properties in Ibiza continued to spread in 2020 due to the internationally represented public. Engel &
Völkers Ibiza registered 15 different nationalities and is once again pleased that Spain is the strongest buyer nation. Germany follows as the second strongest buyer group and is closely followed by Italy and France. However, Engel & Völkers was also able to attract buyers from Ireland and Australia in 2020 with its offer of attractive properties in Ibiza.
New developments in Ibiza
Ibiza continues to offer a variety of attractive new development projects throughout the island. From luxury flats around Ibiza Town, new built villas in the
south of the island or modern residential complexes with exclusive services. Ibiza's new construction projects are not losing their popularity and are in high demand due to their good building structure, individual adaptations along with modern amenities.
This area of the island offers all amenities and thus enjoys increasing popularity. Thanks to the good connections to the airport, it is easy to reach.
Luxurious restaurants and shops and the world-famous old town offer culture and diverse entertainment. There are all kinds of properties for sale. There are romantic flats on the old harbour and in the old town, modern flats on the marina, chic terraced houses and luxurious villas. In the surrounding area, residents will find peace and tranquillity in the Ibizan countryside.
The south and southwest are among the most exclusive areas of the island. Here, the view of Formentera and the small bays with trendy restaurants and beach clubs are fascinating. The clientele is as diverse as the real estate on offer. On the family beach of Cala Vadella you will find beautiful flats and modern terraced houses. Cala Carbó fascinates with the enchanting view of the magical rock 'Es Vedrà'. The exclusive coast of Es Cubells offers luxurious villas with access to small rocky bays, some with small boat houses. In the countryside, country houses with beautiful distant views are for sale
The west of Ibiza has changed a lot with the developments of some of the most luxurious urbanizations on the island. Here you will also find 5 star hotels and chic beach clubs. The connection to the airport and Ibiza town is very good. After all, the range of properties that are offered here is very diverse. It ranges from small apartments near the sea to modern terraced houses or large luxury villas by the sea and fincas in the country. The extensive and fine sandy beaches of the west coast with crystal clear water and the impressive sunsets in the sea are very popular.
Residents, holiday home owners and visitors appreciate the quieter, sometimes bohemian, life in this part of Ibiza. The density of construction is significantly lower than in the rest of the island, leading to a real estate market that tends to be dominated by sellers. Prices are stable and due to the strict building regulations in this mostly rustic area, the supply will remain low going forward. The infrastructure in the area is very good and there are lots of charming quiet bays to discover and enjoy. A true haven for nature lovers and outdoor activities throughout the year.
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The east of Ibiza, with the main village of Santa Eulalia, is a true year-round destination. A fact that is well reflected in the mix of locals, international year-round residents and visitors. The main road to Santa Eulalia has been completed. This important investment will certainly have a positive impact, not least on property prices in the area. The property market is active and includes all types of properties, from seafront flats to townhouses, luxury villas and authentic fincas on large plots. There are even some interesting new developments attracting buyers to the area who may not have looked at the east previously.
Engel & Völkers Ibiza on YouTube
Did you know that Engel & Völkers Ibiza presents exclusive video presentations of some of our properties on YouTube?
This way you can get a unique insight before the actual viewing and get to know the property in a very special way. The following QR code will take you directly to our YouTube channel where you can click through the various videos.
TO OUR YOUTUBE CHANNEL
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