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REAL ESTATE MARKET IBIZA Q1 & Q2 2012
IBIZA REAL ESTATE MARKET: SUMMARY
The Ibiza property market continues to perform with demand driven by lifestyle property investors. Restrictions on new building developments and the natural limitations of space on the island have served to increase the demand and desirability of high quality properties on the Balearic isle.
Ibiza’s reputation is also undergoing a transformation as market interest matures. From its previous image as a party island, lifestyle investors are increasingly drawn to the natural beauty and peaceful, pristine beaches. Sea vistas amid lush green spaces, golfing and polo sporting tournaments, and the island’s high level of safety and security have all been factors that have
appealed to property buyers looking for long-term investments for their own holiday use, as well as for use in leasing to reputable short-term tenants at other times of the year.This maturing of market interest in Ibiza has been cemented by the new Marina developments at LifeMarina (www.lifemarinaibiza.com) which has brought a new wave of luxury property buyers to the island, with world-class apartment buildings designed by the prized architect Jean Nouvel, working with Ribas and Ribas.
“Whereas prices on the Spanish main-land partially dropped in the first half of 2012, the price of holiday homes on Ibiza remained solid,” explained Lucas Fox Ibiza Sales Director, Maxim Rettich.
“Purchasing a property on Ibiza offers safe and stable investment value to property buyers.” “Houses of a good quality are on offer from €600,000 up and exquisite villas can be purchased from €1.5 million,” Maxim Rettich explained.
PROPERTY TRANSACTIONS
Ibiza property sales have mimicked Spanish trends over the past year and a half, with a slightly clearer monthly variation observable.
As was the case in 2011, the majority of sales transactions on the Balearic islands (which includes Ibiza) occurred in January and May 2012.
Whereas prices on the Spanish mainland partially dropped in the first half of 2012, the price of holiday homes on Ibiza remained solid
Property Sales Transactions: Ibiza and Spain: 2011 – 2012
IBIZA REAL ESTATE MARKET Q1 & Q2 2012
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2011 2012
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Global internet search interest for “Ibiza villas” 2011 & 2012
Ibiza Average Property Sales Prices Q3 2010 – Q2 2012
Global interest in Ibiza villas fell slightly according to Google search data. Statistics for the first half of 2012 show a slight drop in monthly searches for most months in the first two quarters of 2012, edging up slightly higher than in June 2012 over 2011, with 316 searches in the month (308 in 2011) on Google for “Ibiza villas”. The majority of inter-net searches for “Ibiza villas” in the first half of 2012 came from the Netherlands, Switzerland and the UK.
IBIZA PROPERTY SALES PRICES
Average property prices in Ibiza have remained steady since the third quarter of 2010, according to both Idealista and Fotocasa property classifieds portals.
At the end of 2011, average property prices recorded in Eivissa, the island’s capital averaged €3026 per square metre according to Idealista and €2929 according to Fotocasa. The first quarter of 2012 saw some jockeying for read-
Ibiza Airport Arrivals (‘000s): 2011 & 2012
International Visitors to Lucas Fox webpages for Ibiza property 2012
justment occur with dips in average prices recorded by both portals. Howe-ver, this pricing drop was short-lived as strong demand for properties on the island ensured a return to almost equi-valent levels as 2011 by the end of June 2012, averaging €2910 per square meter by both property websites.
The average sales prices and steady market behaviour was in strong con-trast to the Spanish averages, which continued to see a decline each quarter since Q3 2010, ending the half-year €900 less than for Ibiza, on an average €2020 per square metre.
IBIZA RENTAL MARKET
Ibiza’s reliable year-round weather and prestigious annual events calendar is consolidating demand for short-term rental properties throughout the year. In 2012, airport arrivals have mimicked last year’s figures almost exactly. To June 2012, 1.9 million passenger arrivals
had been recorded, a slight drop of 1.1% on 2011 figures. Anecdotal and stake-holder experience, however, suggest that this slight shortfall is being made up by a growth in arrivals on ferries from Barcelona.
FOREIGN INVESTMENT INTEREST
The Ibiza property pages on the Lucas Fox website remained of key interest to our website readers, with around 7% of our 2012 website visitors looking at Ibiza properties. In 2012, outside of Spain, website traffic for our Ibiza pro-perties came from the UK, France, The Netherlands and the United States.
IBIZA REAL ESTATE MARKET Q1 & Q2 2012
Alex VaughanDirector Lucas Fox
Stijn TeeuwenDirector Lucas Fox
www.lucasfox.com
LUCAS FOX ANALYSIS AND PREDICTIONS
The second half of 2012 is set to see a similar strong demand for properties as was the case in 2011, with almost the exact conditions related to property interest, property sales, and internatio-nal visitor behaviour as was observed in 2011, one of the strongest years for property recorded in Ibiza.
This growing interest will be driven in part by the appeal of the apartments development at Life Marina (www.lifemarinaibiza.com), already garnering strong worldwide interest from luxury property buyers looking for a unique living experience that brings exquisi-te architectural design to the natural beauty of the Ibiza harbour.
“We predict that the current level of interest in Ibiza will continue in the coming years, with buyer interest in-creasing in the second half of 2012 and into next year, “says Maxim Rettich, Ibi-
za Director for Lucas Fox. “The island’s image as a party metropolis is still there, but Ibiza’s reputation as one of the top luxury Mediterranean holiday destinations is building. With growing international interest spilling over from Costa Brava and Mallorca and the growth of international events such as the Ibiza Beach Polo Tournament, more visitors are coming into contact with the beauty and idyllic paradise that the island can offer with its’ pristine green spaces and crystal blue beaches.” “In contrast to other types of inves-tment possibilities, the right property in Ibiza offers buyers an absolute stability of value. Clever purchases in the best locations guarantee a long-term solid rise in property capital values. Ibiza has limited space for further development, and this constraint on new construc-tions is driving a growing demand in securing the best properties now. This is creating the economic basic condition for a solid long-term property inves-tment on the island.”
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IBIZA REAL ESTATE MARKET Q1 & Q2 2012
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COUNTRY HOUSE
APARTMENT
HOUSE / VILLA HOUSE / VILLA
HOUSE / VILLA COUNTRY HOUSE
LFB473
1,796,000€LFB391a
LOCATION: SPAIN » IBIZA » IBIZA
LOCATION:SPAIN » IBIZA » IBIZA
LOCATION: SPAIN » IBIZA » SAN JOSÉ
LOCATION: SPAIN » IBIZA » SAN JOSÉ
LOCATION: SPAIN » IBIZA » SAN JOSÉ
LOCATION: SPAIN » IBIZA » SAN JOSÉ
4,500,000€LFB466
LFB471
PRICE ON REQUEST LFB329
1,490,000€LFB476
2.200.000€
4,500,000
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