Eyes On Ibiza

Much more than just a flash in the pan hotspot – Ibiza is luring a new wave of second-homer prioritising the sound of peace as well as those hunting the heady beat partying. Abode2 explores the iconic island and investigates its thriving property market

When enterprising artisan Joan Mari opened his drive-up bar on the outskirts of San Carlos in the north of Ibiza in 1954, little did he know that his makeshift hangout would become a bona fide symbol of la buena vida for the entire island. Mari’s pit stop paved the way for a humble dance hall and barbecue. Business began to prosper, even in those tentative first years in which European tourism was just spreading its holiday wings. Suffice to say the seeds of a Mediterranean chill-out utopia were sown and the island has never looked back.

Today, that same irrepressible freedom, colour and warmth that attracted those hippy pioneers continues to shape the island’s intimate yet cosmopolitan tourist evolution, one that happily embraces a rich UNESCO heritage: vintage landscapes, pristine whitewashed towns and hotels rurales as much as the newer addition floaty fashion, uber-glam marinas, night clubs and super-size holiday villas.

But while the DJ-driven club scene remains a draw-card through the summer months – island life is being lived at an altogether more relaxed tempo by a new breed of holidaymaker - health-conscious couples and family-orientated holidaymakers drawn by the easy-care ‘liveability’ of the destination. Many are opting to put down permanent roots basing themselves ‘on island’ for several months at a time where they can take advantage of a business as usual lifestyle albeit in warmer climes.

Compact and bijou, the island squeezes a lot into its small surface. About half the landscape, particularly the rugged north east is covered with dense foliage, thick pine forests and olive, fig and fruit farms, while the coastline is characterised by dozens of cosy bays, walking trails, and out-of-the-way beaches. Northerly resorts such as Santa Eularia, Es Cana and Puerto de San Miguel are popular with those seeking a quieter, slower paced getaway experience, while the livelier south around Ibiza Town, Playa d’en Bossa and the party-on Mecca of San Antonio continues to capture the imagination of a younger work-hard, play-hard international crowd who don’t like to sit still.

As Rémi Gaich, Director of Lucas Fox, Ibiza, explains: “Ibiza offers access to an enviable Mediterranean lifestyle. Imagine waking up to panoramic sea views, indulging in the island's rich culinary scene, exploring secluded coves and pristine beaches, or immersing yourself in the vibrant local culture. Ibiza's irresistible charm extends beyond its vibrant nightlife, offering residents a laid-back ambiance and a sense of tranquillity that is unmatched.”

The third-biggest of the Balearic Islands, stable property values have further added to the investment appeal, with average prices over the past 5 years, rising by 25-30%. Although the South of the island has been the focus point for buyers over the last 5-10 years, the demand has shifted and spread out to Gertrudis (centre) and the North of the island – both these areas are now equally sought-after, while Es Cubells remains a hotspot.

Ibiza has experienced remarkable growth and evolution, attracting international high-net-worth individuals (HNWIs) seeking prime and ultra-prime properties. This trend is evident in the latest report published by the Registradores de España (Spanish Land Registry), which highlights the increasing number of property purchases made by foreigners compared to the previous quarter.

“Ibiza's real estate market is bolstered by a strong local economy,” Rémi adds, “While the island's reputation as a world-class entertainment hub remains intact, its appeal has expanded to attract entrepreneurs and businesses from diverse sectors. The growth of upscale restaurants, luxury boutiques, wellness retreats, and cultural events has created a year-round demand for exclusive properties. The island's vibrant economy provides a solid foundation for investors looking to capitalize on Ibiza's ever-increasing popularity.”

Among the foreign buyers, the Balearic Islands lead the way, accounting for a significant share of 29.16% of all foreign purchases. They are followed closely by other desirable destinations such as the Comunitat Valenciana (28.35%), Canarias (28.30%), Región de Murcia (21.44%), Cataluña (15.60%), and Andalucía (14.64%).

This influx of foreign buyers has played a significant role in transforming Ibiza from a holiday-only destination into a year-round base for families. This transformation can be attributed to the improved infrastructure and increased quality of life offerings on the island. Ibiza has invested in enhancing its infrastructure, including better airport connections, the establishment of international schools and the development of a thriving gastronomy scene.

And this growth and investment shows no sign of slowing down. As Rémi explains: “The future of the Ibiza property market will be significantly shaped by the surging demand for high-end properties and the increasing emphasis on sustainability and eco-friendly living. There’s been an increase in luxury developments, designed to cater to discerning buyers who prioritize privacy, modern amenities and breath-taking views but that are also adopting more sustainable lifestyles and underscores the importance of sustainable living. Developers and sellers who recognize and respond to these evolving market dynamics will be better positioned to meet the demands and aspirations of discerning buyers while contributing to a more sustainable future for the Ibiza property landscape.”

www.lucasfox.com