As in the previous year, Ibiza has seen a 10 percent rise in prices for premium properties in prime locations. The number of transactions has also increased, according to the current “Ibiza Market Report 2016” published by Engel & Völkers. “Both our residential property shops closed 30 percent more sales than in 2014. Moreover, the average sale price rose significantly,” reported Florian Fischer, Managing Partner of Engel & Völkers on Ibiza.
Island hotspot for luxury tourism
Ibiza is a popular holiday destination amongst celebrities and the wealthy international jet set. This is strengthening the luxury tourism and premium property market on the Balearic island. The number of private flights to and from Ibiza rose by 8.5 percent to around 11,000 in 2015. These annual statistics made it the top destination for private aviation in the Balearics. The marina, with mooring berths for superyachts upwards of 70 metres, has also established a reputation as one of the most exclusive marinas in the world. In 2015, Engel & Völkers brokered real estate to buyers from 15 different nations. The largest buyer group was from Germany, followed by Spain, the UK, France, Switzerland, Italy and the Benelux countries. Buyers are seeking homes both for private use and holiday rentals. “Prestigious villas and apartments in top locations are very easy to rent out in high season and present an attractive investment opportunity,” said Florian Fischer.
Top addresses for real estate investments on the island can be found in Ibiza Town and the surrounding region. Properties in the Old Town and along the Paseo Marítimo by the marina are particularly desirable. Apartment prices in these locations have risen significantly. Apartments spanning approx. 100 square metres at prime addresses are currently selling from 800,000 euros. In the immediate surroundings too, Engel & Völkers is registering increased demand for modern luxury villas and apartments. Current entry prices for villas spanning approx. 350 square metres in very good locations are around 3.5 million euros. Traditional farm properties in a similar size and location are selling for 2.5 million euros.
The south and southwest of the island is one of the most exclusive and desirable parts of Ibiza. It is popular with families looking for a dream home in relaxed surroundings. Both minimalist luxury villas and traditional farm properties command top prices on this market. This kind of property in a very good location here costs upwards of 3 million euros. Prices for apartments of approx. 100 square metres in very good locations currently start at 600,000 euros.
The west of Ibiza with its rich variety of coastlines is growing in popularity. The airport, Ibiza Town and the finest beaches on the island are all within convenient reach here. The entry price for villas in prime locations is 2.4 million euros. Buyers can expect to pay at least 2.2 million euros for traditional farm properties in the same locations. Apartments spanning approx. 100 square metres in very good locations cost upwards of 500,000 euros.
The north of the island is prized for its authentic flair. Prices here are guaranteed to remain stable in the long term, due to the limited number of available properties and strict building regulations. The development of the road network between Ibiza Town and San Juan is set to make the region even more attractive. Prices for villas of approx. 350 square metres in very good locations start at 2.8 million euros. Traditional farm properties in the same size and location currently cost from 2.5 million euros.
In addition to holidaymakers and second home buyers, the east of Ibiza also attracts many first home buyers. It offers a wide variety of different landscapes, as well as broad range of properties, from luxurious homes with sea views to estates in rural surroundings. In general, the property market in this region has settled down at a stable level. Prices for top properties have risen significantly however. Upwards of 2.5 million euros are currently being paid for villas of approx. 350 square metres in very good locations. For comparable farm properties, entry prices are 2.2 million euros. Apartments of approx. 100 square metres in very good locations are on the market from 550,000 euros.
Outlook: upward trend in the long term
Engel & Völkers forecasts that the positive development of the Ibiza real estate market in 2015 and at the start of 2016 will continue. This is due to the fact that properties in the most desirable locations on the island remain limited. “Ibiza will remain an international hotspot for properties intended for private use and holiday rental. The high demand for premium homes from abroad is bringing stability to the market,” Florian Fischer concluded.