Ibiza: Sharp price rises for properties in premium segment

The Balearic island of Ibiza is one of the most popular islands in the Mediterranean internationally – both with holidaymakers and property buyers from all over the world. For many years now, growing numbers of buyers have been purchasing residential property on the island with a view to taking advantage of the pleasant climate, idyllic nature and varied gastronomic and recreational treats to be found there. Recently, demand for real estate in the premium segment in particular has risen sharply, as revealed by the latest Engel & Völkers Market Report Ibiza 2022. “Many current buyers were regular visitors to the island in the past who have now fulfilled their dream of owning property there for the first time,” says Florian Fischer, Managing Partner of Engel & Völkers Ibiza. He adds: “Due to the strong demand in 2021, we recorded the most successful financial year to date.”

Hamburg - Ibiza: Sharp price rises for properties in premium segment

Increased demand in all parts of the island

Demand for real estate in the region around Ibiza Town was particularly high in 2021. This area is especially popular with buyers looking to stay on the island for longer periods, due to the good infrastructure, the many shopping and leisure opportunities, and the unique restaurant and club scene. Apartments in the vibrant Old Town and exclusive penthouses by the harbour were particularly sought-after, changing hands from 8,000 euros per square metre. Prices started at 4.5 million euros for villas overlooking the town.

The south and southwest of the island – known for its high-spirited nightlife with various exclusive beach clubs, trendy bars and beachfront restaurants – was also in high demand with property buyers last year. Interest focuses in particular on contemporary designer villas close to the beach here, and overlooking the small rocky island of ‘Es Vedra’ or the neighbouring island of Formentera. Prices for such properties were upwards of 4.2 million euros in 2021. Buyers paid prices starting from 7,000 euros per square metre for apartments directly on the coast.

Long stretches of fine sandy beaches, romantic bays, trendy beach clubs, and stylish hotels and restaurants can be found in the west of Ibiza. Above all, couples with children are drawn here to the family-friendly beach sections of ‘Cala Vadella’, and tend to look for properties close to the sea in this region. Prices for villas here started at 3.8 million euros. Meanwhile, apartments commanded prices per square metre starting from 6,000 euros.

The north of the island is renowned for its unspoiled natural beauty and spectacular sunrises. Some of the quietest beaches on Ibiza are found here, attracting many visitors even during the winter months. In this part of the island, authentic finca estates with expansive plots nestled in unspoilt natural surroundings are in very high demand. Prices starting at 3.8 million euros were paid for this calibre of property.  

The east of Ibiza is very popular with buyers, especially due to the wide range of recreational pursuits on offer. Alongside the port ‘Marina Santa Eulalia’ with its exclusive yachts and traditional fishing boats, the island’s only golf course and the world-famous hippie market ‘Las Dalias’ are located here. Demand here revolves in particular around townhouses and modern villas directly on the coast, with prices starting at 3.5 million euros, while apartments command prices per square metre from 5,000 euros.

Germans make up largest group of buyers

The majority of buyers are residents of Germany, followed by Spain, France, the UK, Italy, Belgium, Luxembourg, the Netherlands and Switzerland. Germans thus currently dominate the residential real estate market, in a similar way to the neighbouring island of Majorca. “Ibiza remains in high demand on an international scale. However, demand from German nationals in particular has increased so sharply in the past year that they have even overtaken Spanish nationals as the largest buyer group,” Florian Fischer reveals.

Cross-seasonal usage due to remote working

A trend that has emerged on Ibiza over the past year is the use of real estate over more extended periods of time thanks to the option of remote working. “We are seeing that many of our clients are now residing in their property beyond the traditional high season – to enjoy the high quality of life and carefree lifestyle on Ibiza for even longer. Many are even making their island home their primary residence,” says Florian Fischer. Other factors here include Ibiza’s improved infrastructure, the growing number of cultural and leisure offerings, and the host of exclusive new construction projects on the island.

Outlook: Further increase in demand and price rises expected

Engel & Völkers expects demand to continue to increase and prices to keep on rising for properties on the Balearic island. The various current projects and developments on the island will keep boosting the level of appeal and international demand. “Now that travel restrictions have been lifted, we expect even stronger growth in demand, particularly for properties in the premium segment,” Florian Fischer sums up.

The full version of the “Engel & Völkers Market Report Ibiza 2022” is available via the following link.

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