Ibiza is very unique and quite different from the rest of Spain. Therefore buyers from all over Europe and the rest of world in fact, are investing in this little sunny island.
The most requested properties for sale in Ibiza have for some years been modern and contemporary designs, but there is a definite rise in demand for more traditional architecture and fincas.
Property values in Ibiza
Property prices in Ibiza have boomed in the past ten-fifteen years with an increase of about 300-400%. The 2009 financial crises did not hit Ibiza in any way like the rest of Spain, but it caused a stagnation for properties valued more than 1.5 million euros and a slight downward trend for less expensive properties. Especially family apartments have felt the crises, since the banks have been more reluctant to give new mortgages.
Around 2019-20 the market exploded again. Many of our clients prefer to invest in a property rather than having their money in the bank or invest in the stock market. A property in Ibiza will always be sought after.
Even the pandemic did not slow this upward trend, quite the contrary. More and more buyers regard Ibiza as the the perfect hideaway.
The beginning of 2024 has slowed the marked again and it looks like we are going into an other stagnation period. It seems people are waiting to see “what happens” with interest rates, the unrest and world economics. As I write this, the interest rates are already falling so perhaps a change will come soon.
The best luxury villa in Ibiza are not only found in the south or south west. Now every area of the island features unique luxury properties and every area has its selling points and advantages depending on the requirements of the prospective clients.
Rental yields in Ibiza
About 85% of the clients buying second homes in Ibiza are interested in letting their properties, in periods when they are not on the island. The yields are very lucrative in the high summer season. A nice luxury villa or luxury finca in a good location with pool and about five bedrooms can easily get north of 10.000 € per week in peak season. The price is much higher for a very large, luxury property.
However to obtain a legal tourist rental license has proved to be much harder than in earlier years.
Therefore there is an extra price tag now a days on a property in Ibiza with a approved rental license.
Read more about the holiday villa rental laws..
Ibiza 2024 Insider Tip
Ibiza continues to attract attention from a wide range of international clientele and is definitely still one of Europe’s hot spots for 2024 despite the crises.
The good news for 2024 is that the wealth tax has dropped considerably.
Read more about property tax here..
First time buyers should take their time and explore the island before deciding on their favourite location. Both North of the island should be investigated. Properties here are still well priced in comparison to the south and some larger plots are still available in a quiet, rural settings, making this area an attractive buy.
With the new much faster road system and great restaurants and bars in most areas makes it less important where on the island do you live .