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…
This report was written by local estate agents.
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 multinational, 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 local agents, 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.