The purpose of this snapshot is to present a quick but informative picture of what’s going on in the property market on the Balearic Island of Ibiza: Demand, prices, inventory, new projects, and professional opinions.
DEMAND / INTEREST
Figures from the Government (Fomento) show home sales in Ibiza starting to recovery in 2014 (+59%) and 2015 (+5%), but still down 40% from the peak year of sales in 2006.
The Google trend for the search term Ibiza property shows interest down 50% to 70% since 2007, but holding steady in the last few years.
There are no transaction-based price figures available for Ibiza.
Asking price data from Idealista, one of Spain’s biggest portals, show that asking price in Ibiza capital are now 21% higher than in the boom year of 2007. This is one of the biggest, if not the biggest recovery in asking prices in all Spain.
Using 2009 as the base year for other areas of Ibiza for which data is available, Santa Eulalia is 6% higher, Sant Josep is 3% lower, and Sant Antoni still 10% lower.
The overall asking price picture in Ibiza is one of rising values that are close to recovering or have exceeded prices from 7 to 10 years ago, whereas vendors in most other parts of Spain are still offering deep discounts.
There are just 1,780 homes currently listed for sale with Idealista, which does not distinguish between primary housing and holiday-homes. With 685 home sales registered in 2015, that is the equivalent of 1.6 years of supply.
In San Joan, in the north of the island, there are only 80 homes for sale.
There are currently 15 new developments listed for sale with Idealista, but almost all in the hands of banks, and some of them are primary housing developments.
However, there are various second-home projects in the pipeline that will come on the market in the course of this year and next year, in places like Playa d’en Bossa, Es Pouet, and Cala Tarida. More information will be provided when available.
Ibiza’s real estate scene today in the words of local property professionals.
JASON HAM, business development and sales for international agents Lucas Fox in Ibiza.
- There is a lot happening in the market today in Ibiza. A lot of energy and activity.
- The island is busier than ever, and the season starts earlier. Hotels are booked up in April, restaurants and clubs are opening earlier, and the winter this year was noticeably busy, with the Atzaro hotel open all winter for the first time with great success.
- Our enquiries are up substantially on last year, and demand is outstripping supply so prices are staying strong. Most of our enquiries are in the €1.5m to €4m range.
- German demand is returning in force, especially on the south side of the island. Dutch demand is also strong, with some very wealthy Dutch people looking to invest in the island.
- There are some new developments in the pipeline, which will be very interesting, but planning restrictions on the island mean building land is scarce. It’s getting increasingly difficult to get planning permission so building land has a growing premium, and villa plots that can be built on make a good long-term investment. We don’t know if there will be more land for building.
- The resale market will get more important in the next few years due to supply limitations of new build.
- The high-end rental market is going through the roof, and even low-end rentals are booked up.
- Overall, the Ibiza property market is growing, but it could do even better. It is being held back by planning and administrative obstacles.
CARLOS NOGUERA, assistant manager of OD Real Estate, the developer of The White Angel and various other projects on the island.
- We see strong demand for property on the island, and prices rising.
- Ibiza is increasingly a glamour destination, with people switching here from places like St. Tropez for their holidays.
- There has been a noticeable increase in the demand for rentals in the last 18 months.
- The hotel sector is very dynamic, with lots going on.
- Building has stopped for the last 8 years, so there is a real shortage of new homes for sale.
- There are important urban planning changes underway, and that is holding up some new projects. The Master Plan is being changed.
- Some interesting new developments are in the pipeline, but not yet ready for sale. They will come onto the market this year, including several of our own.
- Plots to build villas are in high demand.
- We see strong demand in the €1.5 – €2m range.
- Buyers are increasingly looking for property that offers security, privacy, and concierge services.
- There are rumours of lots of wealthy Dutch people including footballers looking to buy now in Ibiza.