The Ibiza Property Market

The Ibiza Property Market

Ibiza is very unique and is therefore – despite the current world crises – still being pursued by buyers from all over Europe and across the Atlantic. The most predominant buyers are British, Italians, Spanish, Scandinavians, Swiss, Dutch, Belgians, Germans and French.

The most requested properties are with modern and contemporary designs, but there is a definite rise in demand for more traditional architecture and fincas. South west of the island is generally the most requested area.

Ibiza Property Values

Ibiza property prices have boomed in the past ten years achieving increases in the region of 300-400%. Although the crises has not hit Ibiza in any way like the rest of Spain, it has caused a stagnation for properties valued more than 1,5 mill. euros and a slight downward trend for less expensive properties. Especially the family apartments have felt the crises, since the banks are more reluctant to give new mortgages.

Recently the marked has started to move again with more activity every month. Many of our clients prefer to invest in property rather than having their money in the bank.

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 buying second homes 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 with pool can easily achieve 8.000 € per week in peak season and potentially much more for a very large, luxury property.

Insider Tip for 2012

Ibiza continues to attract attention from a wide range of international clientele and is definitely one of Europe’s hot spots for 2012.

First time buyers should take their time and explore the island before deciding on a favorite location. The areas of San Carlos, San Mateo and San Juan (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.

With the new road system and great restaurants and bars in most areas makes it less important where on the island you live .