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Booming In Ibiza

11.06.21

Ibiza has become recognised as one of the most exclusive regions in Spain with its Mediterranean flair, mild climate variety of landscape and beaches and a magnet for international investors. The real estate market on the third largest Balearic Island has been stable for many years, with prices consistently high for premium holiday properties. “With the arrival of the pandemic and emergence of remote working, owning a home in a beautiful and safe environment has become far more important for our clients. Our clients are interested in a range of property from modern apartments to seaside villas and rural residences. Demand for residential and holiday properties remains high, especially in the luxury premium segment and this is underlined by the fact that last year our average sales price achieved was 29 percent higher than in the previous year,” confirms Florian Fischer, Managing Partner of Engel & Völkers Ibiza.

Spaniards are the largest buyer group, followed by clients from German-speaking countries:

The island continues to be a magnet for clients from across Europe. Spaniards currently make up the main buying group followed by clients from German-speaking countries with clients from Italy, France, the UK, Switzerland and Benelux countries. Interest from the UK (traditionally a strong buying group), despite Brexit and travel restrictions imposed by the pandemic, remains strong and internet requests notably increased this year from mid-April. Engel & Völkers has also registered a rise in demand from prospective buyers from other non-EU countries and regions, including the USA and Asia. The motivation to buy ranges from a desire to own a peaceful and family-friendly second-home for private use, to the prospect of profitable long-term returns on investment generated by rental income.

Top prices for high-end homes around Ibiza Town and in south of the island:

Ibiza Town, the south and the southwest rank among the most exclusive regions on the island. These areas command the highest prices, driven up by high excess demand. In and around Ibiza Town, luxury villas with direct waterfront views or even direct access to the sea are particularly sought after. Buyers looking for modern apartments near the old town or next to the marina paid entry-level prices of around 8,000 euros per square metre. In the south and southwest, brand new contemporary homes and large Mediterranean-style villas directly on the coast with views of the neighbouring island of Formentera are among the most expensive on Ibiza. In 2020 prices for particularly outstanding properties in prime locations started at 3.8 million euros, with modern terraced houses selling for upwards of 960,000 euros. “The arrival of a more flexible work culture means that many of our clients are looking to spend more time on the island and are increasingly using their second home to work remotely. Features such as a terrace, an extra room in urban apartments to accommodate a home office, and a reliable Internet connection have become extremely important for many buyers,” says Florian Fischer.

More property for your money in the west, north and east:

The west of Ibiza also offers a diverse range of properties, from luxury villas on the coast to historic rural “finca” estates further inland, through to modern apartments and terraced houses in all price categories. In premium locations, buyers can expect starting prices of 3.5 million euros for premium villas and rural properties, while prices for exclusive apartments started at 6,000 euros per square metre in 2020. Fascinating countryside can be found in the north of the island. Buyers drawn by the authentic traditional side of Ibiza and looking for a beautiful rustic property will find what they are looking for here. Compared to the high prices in the south, properties in the north have more moderate price tags and the density of homes is also much lower. “Strict building regulations will continue to make sure that the number of properties remains limited in the future, therefore preserving the authentic beauty of the region,” says Florian Fischer. Last year, traditional finca estates sold here for prices starting at 3.5 million euros.

In the east of the island, luxury villas, modern apartments, authentic finca estates and country houses in the quieter areas around Santa Eulalia are all highly desirable. Due to improved local infrastructure, with the completion of the main road to Santa Eulalia last year, property prices in this region are expected to rise in 2021. According to Engel & Völkers, starting prices for top-end villas in top locations sold for upwards of 3.2 million euros in 2020. For exclusive apartments, Engel & Völkers registered prices starting from 4,500 euros per square metre.

Outlook: further price development and increased transactions in 2021:

Engel & Völkers forecasts a continuation of current price trends and an increase in the number of transactions in 2021. “The island’s status as a safe haven together with dynamic buyer activity over recent months, and a continuous stream of requests for digital property viewings have given us cause for optimism. We have many clients who can hardly wait to view their favourite houses and apartments in person. We are therefore confident that buyers and sellers will proceed with their real estate plans and close transactions as soon as unrestricted travel is possible again,” Florian Fischer concludes.

The Engel & Völkers Market Report for Ibiza 2020/2021 can be found in full here

https://www.engelvoelkers.com/en-es/ibiza/

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