 Ibiaz Property
2007 report
This report was prepared by Engel & Völkers, a real estate agency with offices in many of Spain’s most popular destinations. It is reproduced here with permission. More information on Englel & Völkers
Ibiza Properties
Ibiza is often called the White Island because
of its white buildings and typical smooth
domed architecture. The island became a
major tourism destination during the 1960s
famous for its “Hippie-Culture” and nudist
beaches. Today, Ibiza is ever popular with
singles, families and older visitors although it
continues to have a wild side with its famous
nightlife and clubs, but there is far more to this
magical island than nightclubs…
Ibiza offers a mild climate, wonderful beaches,
peace and relaxation, traditional Mediterranean
lifestyle and wonderful landscapes.
There is plenty to do away from the beach such as;
exploring Ibiza’s lively towns and sleepy country
villages, playing golf on the island’s 18 hole
course (others are currently under construction or
in planning), walking, cycling or sailing around
one of the island’s many marinas.
The island is easily accessible via the Spanish
Mainland and for most of the year, there are
plenty of daily scheduled flights from all over
Europe.
Ibiza has a cosmopolitan feel and is multi
national, attracting people from all over the
world and from all walks of life together with
many celebrities from the arts, music and film
industries. They enjoy the island’s understated
chic and for the privacy it offers them. Many
celebrities and international business people
have used the services of renowned architects
who have designed state of the art luxury villas
combining modern style with other influences
from around the world. These properties have
become famous architectural references and are
found in top design magazines.
Recently, a new highway connection to the airport
has been built and has increased accessibility to
all parts of the island making travelling times
considerably faster.
This factor, according to three local Engel
& Völkers shops, has increased sales by
approximately 10%. There is strong demand
here as clients discover they can get more
property for their money and they are attracted
to the rural landscape of the area in the north
and north east.
South/West Ibiza Property
Features luxurious residences and stylish
mansions and many recently constructed
properties. This area is more densely populated
with views to the fourth Balearic Island of
Formentera and to the other islands in the
distance. The south/west has many excellent
beaches and protected areas for nature reserves;
it also has good access to the airport.
Ibiza Town and Outskirts Property
Located close to the marinas, and the main port
where cruise ships are moored and is a key area
for hotel accommodation. Here, you will find
comfortable, modern luxury apartments and
villas, which have views to the old town D’alt
Vila and Ibiza’s Biodiversity & Culture Site,
declared a World Heritage Site by UNESCO in
1999. Finally, it has fast access to the city and
its cultural life and is close to the island’s golf
course.
North/North West Ibiza Property
This is an up and coming area, which is the island’s
main agricultural region. It has contrasting
landscape from high cliffs to green forests and is quiet and sparsely populated featuring large
plots of land and more traditional houses,
many of which have been converted into modern
stylish houses.
East/North East Ibiza Property
This area is popular with tourists and there is life
here year round. There are wonderful places to
visit, many secluded bays and quaint vil-lages.
Property here tends to be in residential areas
featuring luxury villas.
The Ibiza Property Market
The market is very mixed with buyers from
all over Europe and from across the Atlantic.
The most predominant buyers are British,
Italians, Spanish, Scandinavians, Swiss, Dutch,
Belgians, Germans and the French.
The most requested properties are villas and
apartments with greater demand for “designer”
style property. South west of the island is
generally the most requested area.
Ibiza Property Values
Ibiza property prices have boomed in the
past five years in comparison to some of its
neighbouring islands achieving increases in the
region of 100-300%. In 2006 prices continued
to rise steadily at around 5-10%.
You will see from the boxes below that there is a
great range of property prices on the island, the
less expensive in the north of the island starts at
around €180,000 for a 2 bedroom apartment to
€765,000 for a 4 bedroom villa.However, in the
east and south of the island the prices leap up
to a starting price of approximately €300,000
– €1 million plus.
However, the best luxury properties are not
only found in the south or south west. Now
every area of the island features unique luxury
property and every area has its selling points
and advantages depending on the requirements
of the prospective clients.
Ibiza Rental Yields
Clients will spend anything from two weeks in
the summer to three months per year in their
properties and the majority, approximately
85%, are interested in letting their properties.
Rental yields are particularly lucrative in
summer, which is when the majority of property
owners let.
Rental yields are pretty constant throughout the
island at this time when a well appointed villa
can achieve up to €8,000 per week and potentially
more for a very large, luxury property.
Insider Tip for 2007
Ibiza continues to attract attention from a wide
range of international clientele and is definitely
one of the Mediterranean’s hot spots for 2007.
For first time investors the areas of San Carlos
and San Juan (north east and north of the
island) should be investigated. Property here is
still well priced in comparison to the south and
larger plots are still available here in a quiet,
rural setting, making this area an attractive
buy.
In addition, the local town hall is keen to
develop the existing infrastructure and offer
more flexibility within the existing planning
regulations. |
