Ibiza Boosts Luxury Homes Supply

Mirroring its chill-indulge-repeat popularity with HNW holidaymakers, the residential property market on the White Isle continues to prosper. Entry prices for villas, fincas and apartments in prime locations show a 17% lift in the north of the island, with an 11% spike for villas in the west. Local authorities have responded to this sustained level of demand from international buyers by further developing infrastructure on the island and greenlighting a quota of innovative new turnkey development projects.

Luxury homes continue to enjoy a high level of interest, particularly among western European and Scandinavian buyers, as well as clients from the Spanish Mainland. The current flurry of new construction activity is resulting in a higher availability of quality properties on the market. However, strict building regulations mean a supply scarcity is on the cards in the long term..

2017, saw prices rise across the board in the best locations across the island - notably in Ibiza Town and the surrounding south coast region where there’s strong demand from second-homers seeking on the doorstep glitzy nightlife and fine dining. Property here ranges from historic townhouses to modern apartments overlooking the marina, through to premium villas just outside the town. The newly redeveloped centre combined with the opening of new luxury hotels such as Nobu and OD Talamanca, has enhanced the exclusivity of the island’s capital. For villas in top-tier locations with living interiors of 350 square metres - entry prices in 2017 rose to 4.3 million euros (2016: 4 million euros). A lower price threshold for freehold apartments in prime locations increased over the previous year by 100,000 euros to 1 million euros.

Sustained investor interest is also reflected in the growth of private air traffic which increased by 8.5% (source: AENA) in 2017, as well as in the number of wealthy visitors drawn to the island’s marinas. Germans dominate the market, followed by Spanish with buyers from Italy, Benelux, the UK, France and Switzerland. International buyers are also attracted to the coterie of new luxury developments making an appearance in the southwest of the island. The special appeal of this turnkey living concept includes exclusive extras such as a concierge and security service, which are available to residents on request.