Ibiaz Property

2008 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 a compact and beautiful island covering just 572 square kilometres. It continues to attract a cosmopolitan and diverse international buyer. The combination of its mild climate, wonderful beaches and countryside, traditional Mediterranean lifestyle together with its world renowned social and music scene has converted this island into one of the most fashionable locations to own a second home.

Ibiza offers something for everyone. The local people are tolerant and welcoming and the island is understated and therefore popular among high profile visitors because they can blend in and can go about their business and be relatively anonymous. There are many “hideaway” locations offering privacy and security, which is why so many of the international “jet set” own homes here.

The island is easily accessible with direct flights from all over Europe year round with a reduced schedule in winter. Recently, the new highway from Ibiza Airport to Ibiza Town has been completed reducing drive time down to 10 minutes. A wide range of property is available from traditional country style houses to modern contemporary design houses and it remains a favourite destination with leading international architects.

Engel & Völkers has three offices covering the whole island, one of which specialises in rentals. Investing in property here continues to be regarded as a safe and secure investment, which appears to be impervious to outside influences. All the offices report an increase in sales in 2007 with excellent prospects for 2008 where top quality luxury property of over €2 million plus are much in demand. Clientele on Ibiza are very international and come from all over Europe and beyond. However, the main markets are British (35%) and Spanish (30%) and over 70% of all buyers are buying a second home. In the south west the average price for an apartment comes in at around €350.000 rising to €1.5 million for a villa and more for a top luxury designer property. The majority of clients spend more than a €1 million and they are generally younger than you might find on the other islands, but they too are also looking for peace and privacy with good orientation – south facing. Recently, more potential buyers have been looking for super luxury properties in prime locations.

The north of the island is more peaceful in summer and features picturesque, wilder landscape than in the south and tends to attract a different clientele. Here the client is likely to be looking for a more permanent residence and will spend longer periods of time in the property year round. Typical country style houses “fincas” are the most requested, with an average price of around €1.25 million. Here too the market is very international.

According to the three Engel & Völkers offices around the island, any location in Ibiza is worthy of investment. In the north of the island, which is less populated, property is potentially more likely to increase in value over the next couple of years.