2020 Annual Ibiza Property Market Report and 2021 Forecast

This 2020 annual property market report and predicted forecast for 2021 has been provided by Prestige Properties Ibiza, which summarises key trends and patterns in the current Ibiza and Balearic housing market, with statistics and impressions from both internal and external sources as documented.
The analysis covers four significant points and primarily draws upon data and figures received throughout 2019 and 2020.

The Ibiza Property Market Report has been broken into four sections as detailed below:

  1. The General Balearic Property Price Curve
  2. The Ibiza Property Price Curve
  3. Prestige Ibiza Luxury Housing Market Report 2020
  4. The Forecast for 2021

The General Balearic Property Price Curve

The general real estate market across the Baleares has demonstrated a durable and stable rhythm in both consumers and house prices over the past 10 years. Following the financial crisis in 2007, the real estate market took a steep drop from its peak, which later stabilised and found a steady recovery from 2017 onwards.

Ibiza Property Market - Evolucion del precio de la vivienda en Islas Baleares

The year 2020 is the first year to have both a marked price and sales drop since 2017, suggesting the overall market is experiencing slight fatigue.
According to Tinsa (2021), the average house price throughout the Baleares shows a decline of 1.4% throughout 2020.

However, given the uncertain circumstances relating to the global economic system, individual employment conditions, lockdown enforcements, and travel restrictions related to COVID-19, these statistics are to be more than expected and are a direct result of less movement within the property market industry over the past year.

This is data further supported by EpData (2021) who also identify a clear drop in property sales across the Baleares from 2019 to 2020. Published data by the General Notary Council declared the number of sale transactions at a total of 1,124 in January 2020, representing a year-on-year decline of 1.92%. This in turn may also have influenced the beginning of house prices gradually dropping, even before the start of the pandemic, although we cannot be certain.

The Ibiza Property Price Curve

However, when discussing the rise in the general property market price curve in the Baleares before 2020, one of the most notable and major contributions to its recovery and growth lies in the luxury real estate market here in Ibiza.

Here, we find the inflation of luxury housing as a weighty contributor to the upsurge of the overall general property market price curve, and a palpable influence in the continuing momentum from 2017 onwards.

Ibiza has become, by comparison to anywhere else in Spain, including the leading cities of San Sebastian, Barcelona, and Madrid, an exceptionally valuable island, with average property prices rising above 56% in the past five years with a year on year progress – El Pais, 2019

These figures over the past five years correlate with the immense interest and pursuit for homes from non-resident and overseas buyers. The demand for luxury properties has gone from strength to strength, and the Ibiza property market has ever since seen a rise in the value of our homes.
This immense pursuit from international clients has led to the high-end property market in Ibiza finding itself with an occurrence of a low supply versus a high demand, and low supply effectively means that many villas and properties are stamped as a rare product.

Naturally, where there are demand and rarity, areas become highly sought after, and even those smaller, lower costing properties, terrace housing, and apartments have taken a significant leap in value too, creating an unwavering price curve for the whole of the Baleares.

The Ibiza 2020 Luxury Property Market Report with Prestige Properties

The year 2020, although unstable in almost every sense of the word, has surprisingly followed the trend of increase here in Ibiza, with similar patterns starting to emerge in 2021.

It must be noted this ‘increasing price curve trend’ can only be considered when discussing the luxury housing market, whereby the majority of properties in question are related to international second-home buyers, that are seeking and purchasing housing at the top-end of the Ibiza property market values. Our internal statistics from our sales database with Prestige Properties Ibiza between 2019 and 2020 calculated an average increase in price per square metre, from 6.665 to 7.021€ (approximately 6% increase), with the same number of sales recorded.

Overall a very minor 1.1% decrease was noted on the total Euro expenditure from purchasing properties over the entire year. Even with global lockdowns, business closure for three months, and multiple travel restrictions, the luxury housing market has remained strong, just like our year-on-year statistics which have remained very firm and very positive.

Ibiza Property Market - Avg. Price per square meters 2019 2020

Property investment in Ibiza throughout 2020, specifically in the luxury housing market, has been incredibly safe with values very attractive on a global standard.

Although the general property market price curve and sales demonstrate a slight dip and fatigue over 2020, the luxury real estate across the island of Ibiza, has demonstrated a noteworthy difference to the overall general statistics, with a continuation of increase that is inevitably supporting the overall market happenings.

The Luxury Real Estate Market

Ibiza is clearly distinguished by many exclusive and high-end properties. In each municipality prime housing has always been highly sought after. The luxury second-home real estate sales market has been very active throughout the health crisis and our annual statistics have confirmed our speculation (among our partners and collaborators), the interest in Ibiza has grown during the health crisis, with more and more clients looking to fulfill their dream life, in a more natural environment, away from the inconveniences of the large metropoles.

From February 2020, just before the first announcement of a global pandemic, we see a consistent and steady flow of users over the year visiting our website with the same usual peak over the summer months where tourism enquiries are more active.

Ibiza Prestige Properties - 2020 - Monthly Traffic (Num. Users)

The island of Ibiza is an exceptionally diverse culture attracting many communities predominantly from across Europe with International buyers dominating the luxury real estate purchasing market.

Our internal data demonstrates the majority of international interest throughout 2020 were the British population (23%), with an almost equal distribution of nationalities from France, Belgium, Germany, the Netherlands, and the United States visiting our website as confirmed users.

Ibiza Prestige Properties - 2020 - Audience Geography

Whilst the Spanish and Italian nationals came into second and third place, these statistics are more likely to be reflective of the tourism market rather than the luxury housing market, as these two nationalities are not the most common buyers in Ibiza within the luxury real estate market.
Undeniably, fewer clients viewed properties due to travel restrictions throughout 2020, but those determined to purchase a home in Ibiza, continued on their buyer’s journey successfully, giving us great confidence to face next year with optimism and positivity.

Our speculation is strongly supported across the board with reports that "Spain’s luxury real estate market remains patient, contemplative and sound. Almost immune to price indentation in other segments of the sector, luxury housing has been sheltered in a trench of owners who resist lowering their properties, knowing that this market plays in another division." – El Pais Economia, 2020

Since the beginning of the pandemic, peace, and tranquility, away from risk, quarantined cities and schools, ecological land, fresh air, and less overcrowding are high on the buyer’s agenda.

Ibiza Property Market Forecast 2021

House prices in the luxury Ibiza property market are expected to remain stable in 2021 with anticipated growth and continued progress at a steady and stable rate.

It is still undoubtedly the international buyers and overseas investors who continue to be Ibiza’s leading audience with second luxury homes being the main conclusive factor for this continuation in momentum, setting the scene in the luxury home sector both now and in the future.

With the consideration that the early months of any new year are relatively quiet for any industry, the current interest in the early part of Q1 2021 has already seen a determined continuation of an increase in both property values and sales. We anticipate a very mature and sustainable market consisting of long-term stability, growth, and strength, which indicates a continuous and positive future market in 2021.

The anticipated drop of sales and property prices across the Baleares due to the pandemic excludes the luxury housing market here in Ibiza. However, it must be noted there are no signs of crisis in the property economy thus far, and we expect to see a positive continuation of the general Balearic property price curve as we begin to move towards normality in the future.

Consideration must be given to the potential opportunities available across the general Balearic market. Smaller plots of land and housing investments currently valued at lower rates are likely to have a very short expiry date. Once the pandemic relaxes and we begin to return to normality, these opportunities will likely cease to exist as property prices are likely to get back on the same path of increase as before, especially as the luxury housing market and desirability for Ibiza has not wavered in the slightest over 2020.

Prestige Properties ‘Fun Facts’ 2020

With the 2020 Ibiza Property Market Report and 2021 Forecast heading in the right direction for a positive future, we thought it would be fun to add a few additional points to our article. Here are a few of our top viewed properties over the course of the year. We hope you enjoy ‘through the keyhole’ at our most desirable luxe properties below.

Penthouse Es Pouet – 17,488 views

Asking Price: 3,295,000 € – Removed from Market for a Long Term Let Agreement

Penthouse Es Pouet Ibiza
Penthouse Es Pouet Ibiza
Penthouse Es Pouet Ibiza

Villa Calypso Cala Salada – 12,807 views

Asking Price: 2,350,000 € – SOLD

Villa Calypso Cala Salada
Villa Calypso Cala Salada
Villa Calypso Cala Salada

Villa Estels San Mateo – 8,532 views

Asking Price: 5,950,000 € – SOLD

Villa Estels San Mateo
Villa Estels San Mateo
Villa Estels San Mateo

Looking to buy a property in Ibiza?

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Send us a message and we will get back as quickly as possible!

    End of Year and Christmas Update 2020

    Christmas Greetings from our company Sales Director & Partner: Victor Van den Driessche

    Dear clients,

    On behalf of the entire team at Prestige Properties, I would like to wish you all a Merry Christmas and a very Happy New Year!

    This year, especially, we would like to say a special thank you to all our clients, for their support and trust during these difficult times. We hope you all are able to be with your loved ones during the holidays and we send our warm thoughts from the Island.

    Let’s all look forward to a happy 2021, staying safe and enjoying a lovely end to the year.

    Market News

    We would also like to take this occasion to give you some news about the real estate market in Ibiza. Surprisingly, the sales market has been very active and prices have remained stable throughout the health crisis.

    At Prestige, we are proud and thankful to say that our sales numbers are very similar to those of 2019, despite needing to close our office for approximately 3 months. Undeniably, fewer clients viewed properties due to travel restrictions, but those determined to purchase a home in Ibiza, continued on their buyer’s journey successfully, giving us great confidence to face next year with optimism and positivity.

    Selling prices have remained very stable throughout. Upon analysis from our sales database, we can see the price per square meter has risen from an average of 6.665€ in 2019 to 7.021€ in 2020. These statistics have confirmed our speculation (among our partners and collaborators), that the interest in Ibiza has actually grown during the health crisis, with more and more clients looking to fulfil their dream life, in a more natural environment, away from the inconveniences of the large metropoles.

    "The price per square meter has even risen from an average of 6.665€ in 2019 to 7.021€ in 2020"

    The rental market however has been more complicated, with a drop of approximately 50%, as a result of cancellations and ongoing restrictions. Naturally, these complications were to be expected, and we anticipate next summer will return back to normal. This anticipation is largely related to receiving more requests than ever before for Winter Rentals, with the bookings and enquiries also looking very promising for next season 2021 (don’t miss the early bird promo available until the end of 2020).

    Covid in Ibiza – Update

    The level of alert in Ibiza has just gone down from Level 3 to Level 2, on a scale of 4. Traveling to the Balearics is still allowed: all travellers (over the age of 6 years) must fill out a health control form and provide a negative-result from their Covid PCR test done in the previous 72 hours.

    Covid in Ibiza Update

    Ibiza is now in Alert Level 2: Medium risk sustained and widespread community transmission with increasing pressure on the health system. You can find all the information about traveling to the Balearic islands in the following link: https://www.caib.es/sites/covid-19/es/covid-19

    Winter Holidays on the Island

    Those relatively positive virus-related numbers are allowing us to receive clients in their second residence or in one of our rental villas for the winter holidays.

    Winter is a unique chance to discover the island during a very different time of the year and escape the very strict lockdowns of bigger cities. The majority of the island’s favourite local bars, restaurants, and markets remain open, and the weather is usually sunny and around 20ºc, so perfect conditions for outdoor sports, walks along the beach, or breathing in some fresh air in the lovely countryside.

    You can find more information about all the activities available on the island during the off-season in some of our most recent blog posts.

    Forecast for Season 2021

    At the moment we have no indication that the direction of the property sales market is going to change. We believe numbers will remain stable, or even slightly increase in 2021. We are still receiving continuous and serious interest from clients via all our channels.

    The beginning of the vaccine campaigns should mean that our office will be able to remain open all year and clients should be able to keep coming to the Island, even if safety restrictions and health measures still apply. The virus will not disappear for next season, but the local government has been proactively working on health control measures to ensure that the main economy is affected as little as possible next year.

    Most rental villas are seeing similar reservation levels to pre-Covid years, so we recommend our clients to get in touch with us as soon as possible if they are planning to come.

    With all this said, it is time to wish you again the most wonderful holidays and say goodbye, until next year!

    Victor Van den Driessche (Sales Director & Partner) 

    with Your Prestige Properties Team 

    Do you have any questions or need more info?
    Send us a message and we will get back as quickly as possible!

      [Interview] Ibiza 2020 and Property Market Update with Prestige Properties Ibiza

      A new interview with Victor, Partner & Sales Director of Prestige Properties Ibiza, about Covid-19 in Ibiza and the effect on the Island’s Property Market

      What is open and available for tourists visiting the island this summer 2020?

      The summer of 2020 has certainly encountered a slow start due to recent global events. However, with national flights between the Balearics and mainland Spain occurring from late June and international flights from July 1st, Ibiza is now officially open for the majority and enjoying a different, yet remarkable tourism season considering the circumstances.

      The good news is, all of the island’s outdoor spaces are now open for public use which includes all the beaches, marinas, outdoor activity spaces such as tennis clubs, golfing, water sports and diving clubs, general group water activities like paddle boarding and kayak excursions, boating as well as land leisure activities such as hiking and cycling.

      Most restaurants, bars and shops are back to business with more places opening each and every day. We have been pleasantly surprised at the atmospheric vibrancy of the food and beverage industry and could not be happier for businesses to be flourishing again. The only main difference when compared to previously, is the night clubs still remain closed.

      Victor, Partner & Sales Director of Prestige Properties Ibiza

      What activities would you recommend for tourists visiting this season and why?

      Ibiza is the ideal island to explore and get acquainted with the beautiful hidden gems on offer. During July, August and most of September the island is usually extremely busy, which often leaves many visitors reluctant to hire a car and hit the road with the intense traffic and lack of parking in so many spots.

      This year is an optimal summer to take a touring opportunity and adventure around different beach coves, restaurants and towns, which may otherwise be less desirable during the height of the season for most.

      We would highly recommend any kind of outdoor leisure activities. Ibiza is an ideal place for cycling, playing tennis, snorkeling, night canoeing and taking a fun day with paddle boards out to sea. There are so many great opportunities and activities across the island to engage in and enjoy Ibiza’s natural side.

      With fewer people this year, these activities feel all the more special and gain an extra sense of wide open space and quiet retreat. There are many companies that specialize in offering tours and activities for visitors to enjoy.

      Formentera is an absolute must visit. With its crystalline waters and white sands, this small sister island of Ibiza will feel very much like a personal tropical island this season. Whether renting a boat or catching the ferry from Ibiza’s Marina or Santa Eulalia, spending the day in Formentera with its spectacular beaches, luxury seafront restaurants and seeing it’s glorious sunsets is nothing short of a perfect summer day in our opinion.

      Cala Saladeta Summer 2020

      What is new in Ibiza this year?

      Every year in Ibiza new and exciting venues open and join the lively social aspect of the island. Here are the top latest additions to our home which we are sure are worth a visit during your next Ibiza holiday!

      Hotel W – Santa Eulalia

      W Ibiza is a much anticipated brand new 5-star seafront hotel boasting of luxury suites, fine dining restaurant, regular nightlife music and Dj sets as well as a stunning health, wellness and spa centre. W Ibiza strikes a pose on the palm-fringed, sand-drenched beachfront of Santa Eulalia. This is where you get to stay and play with a brand that was made for the White Isle. The hotel comes complete with its very own yet separate seafront Chiringuito Blue Restaurant and a Vegan VE Cafe.

      Alma Beach Bar and Restaurant – Port des Torrent

      Alma Beach Ibiza is a brand new boho chic styled beach bar and restaurant situated directly on the beach of Port des Torrent, who are committed to an ibizan lifestyle concept in hospitality. The restaurant offers three different restaurant proposals, sunset, brasas and wellness, with one common denominator: to promote healthy cuisine with top quality ingredients.

      Alma Beach Ibiza is a unique place in which to enjoy the magical moments that the Pitiusa island has to offer.

      Alma Beach Ibiza 2020

      Bam-Bu-Ku – San Antonio

      Bam-Bu-Ku brought to Ibiza by the famous west end O Beach, a new family friendly day experience to San Antonio. A perfect opportunity for anyone looking for a lazy day under the Mediterranean sunshine, overlooking the pool whilst sprawled out on the luxury venue beds, complete with a personal waiter service. Here you can enjoy breakfast, lunch or dinner in a paradisiacal restaurant featuring a wanderlust menu of tropical fusion cuisine.

      Bam-Bu-Ku-Ibiza 2020

      Es Birra – Es Cana

      Es Birra Ibiza is Es Canar’s new socialite place to be if you’re located in the Santa Eulalia area. The old original night club of the 90’s has been taken over by a group of young and innovative individuals where craft beer, a typical gastronomical matching menu and a variety of live music genres exists. Es Birra brings forth a brand new trendy venue with plenty of indoor and outdoor space and an authentic Ibizan tribe.

      ES Birra Es Cana Ibiza 2020

      WOW – San Rafel

      WOW is a house for people to meet, gather and enjoy tantalising cocktails, pure, honest, raw and refined food combined with vintage furniture and retro interiors. It’s everything from a co-working space, to brunches at the weekend, art exhibitions and an array of seating areas to suit any mood.

      How do you think the island will be different without the nightclub tourism scene this season?

      The island is definitely much quieter than usual for this time of the year and we hope this knowledge encourages visitors and potential visitors of tourism, that quieter is in fact safer, with less overcrowding.

      This means we are encountering more families, couples and low key groups of friends from across Europe as a result of the nightclub scene remaining closed and also many of the big tour operator hotels, which is setting a very different tone to the island.

      With less extremes over the summer, the overall atmosphere and vibe has to date been more relaxed and demonstrates a similar collective of tourists, which would normally be seen during low season in Ibiza.

      Formentera beach summer 2020

      What measurements and regulations have been set in Ibiza for health and safety management that tourists and visitors need to be aware of?

      If you are visiting or considering visiting Ibiza in the coming months, we would like everybody to feel reassured that Ibiza tourism and lifestyle is continuing on a positive path and is open for your enjoyment.

      Certain regulations and safety measures are set to keep everyone feeling welcomed and able to enjoy their surroundings whilst still minimising overcrowding. Social distancing measures of 2m and facial masks continue in all indoor public spaces such as shops and supermarkets etc.

      The Balearic Islands recently made an extra adjustment to their current measurements in relation to the health and safety standards for all citizens and tourists who are visiting this season 2020. On Monday 13th July, a minor addition was made, similar to other European countries, whereby facial protective masks must be worn in all open spaces within urban areas, instead of only in closed public spaces.

      Outdoor living and social events such as relaxing on beaches, swimming, sporting activities, eateries, walking and exploring the countryside can continue as normal, mask free!

      The general expectation of the public within these outdoor settings is to maintain respect for one another and uphold social distancing between smaller groups and others as well as reducing overcrowding as much as possible.

      All public businesses including food and beverage industries have been advised on strict health and safety standards including all members of staff checking temperatures before each working shift and the utilisation of masks at all times when serving customers.

      For more information on our current safety measurements please see our recent publication "Summer 2020: The Use of Face Masks in Ibiza" !

      Formentera paradise - pic taken from formentera.es

      Winter in Ibiza

      Do you envision a shift in seasonal tourism or an extension of the summer this year?

      We hope the latter part of the summer season will be stronger compared to the beginning of the main season and for this to continue into the early part of the winter also.

      The main season has started slowly so we hope to see September and October as good months for the local economy. We don’t envision big changes, but ultimately it will all depend on the evolution of the health and well being of the current COVID-19 circumstances and the public here in Ibiza.

      What is the meaning of "Veroño"?

      Veroño is a term made up of two Spanish words, Verano (meaning Summer) and Otoño (meaning Autumn). The term is the way we express the continuation of summer into the autumn months, and the beautiful spring-like after seasons we experience here on the Island from October through to early December.

      The sea remains warm long after the big crowds leave and the weather usually stays warm and pleasant well into November. Most restaurants and businesses stay open until Christmas and for islanders, Veroño is almost like a quiet, tranquil spring setting with the majority of low-season opportunities and social events, including a few authentic parties to mark the end of the season and celebrate with each other. Winter for us starts officially in January.

      Have you ever been to Ibiza during Veroño? Check out our latest blog.

      sunset in Ibiza

      What is exciting about the winter time in Ibiza?

      Peace and rest. For most of us it is time to regenerate and spend quality time with our families, friends and among nature. Work is always quieter, but it allows the opportunity to prepare and get creative with new fresh ideas for the following season.

      What secret hidden gems would you recommend to discover in Ibiza during the off-season?

      During the summer season, many of us are busy working and are unable to find time to take on extra activities, especially under the heat, overcrowding and traffic on the island.

      Winter offers the perfect space and weather to remember why we live here. There are so many beautiful spots to explore, hills to hike and local all-year round restaurants to visit. Ibiza is never short of a beautiful day out and there’s always something new and undiscovered, even for those that have been here as locals for many years.

      Sa Talaia, the highest point on the island offers a fantastic hike with outstanding mountain top views. The hills in San Juan are also of incredible value for nature lovers. To simply experience a coffee in a local Ibizan bar among locals or to visit the natural springs of San Mateo, near Can Suleyetas, and then grab a tasty bocadillo, are simply priceless experiences that residents treasure during the winter time.

      Current Ibiza Property Market

      Are clients’ still actively seeking to buy property in Ibiza and have there been any significant changes in the Ibiza Property Market since the announcement of the Global Pandemic?

      What we have evidently seen to date has been very encouraging. The online interest and activity has remained very strong with an increase in interactions (requests, website visits) from potential and future clients during the lockdown period. It appears many were utilising their quarantine to research and pursue buying their desired property in Ibiza.

      Buyers are far from changing their mind. Since July, viewings have resumed and many clients are arriving on the island to continue their property search now that the flights have reopened. So we can say that all is very active, yes!

      We are generally not expecting the property market to have a drop, mainly because the demand is high and the supply is always very low in Ibiza.

      We would simply advise anyone looking to buy a property in Ibiza to follow their projects and make sure you continue to work with experienced professionals and remain fully informed and updated.

      It is still very early to predict the level of impact in the long-term. There will inevitably be changes and marked impressions on a global scale. However, Ibiza has always proven to be a solid market, so if you are well informed, you will be sure to make a good profitable decision.

      Cana Xica villa Ibiza

      What is the best advice you could offer those considering or currently with a buy to rent property in Ibiza ?

      Individual situations for those looking for buy-to-rent properties and tourism licenses will very much depend on the individual needs, their mortgages, general income and their dependency on tourism rentals as a main source of income.

      However, we would highly recommend any client to consider the long term prospects, have a good strategy about pricing and think about beginning to build a good client base (which can be done by selecting a strong agent). Ibiza is a very desirable tourism hotspot across the globe and is guaranteed to drive revenue in the long-term.

      Future Outlook 

      How has Prestige Properties Ibiza as a business and a team had to adapt to recent events and how do you perceive the near future to look like as a company?

      We all had to adapt during the past few months. Working from home, working part time and taking care of our families. Gaining a new work-life balance has not been an easy time for any of us.

      Proudly, we as a team have worked closely together and hard to improve every part of the business and the service we offer to the island and our clients, which makes us positive about the future. We are ready to work our way whatever comes our way.

      We have stayed open throughout. All our agents have been active. We have been spending more time than ever finalising our website and the presentation of our properties, as well as setting up our new virtual viewings service.

      Potential buyers have still been able to get a closer feel for properties on the market and have been able to fully continue with their buyers journey.

      Do you think the tourism industry will be strongly affected in the upcoming season 2021?

      We will all have to continue to adapt to the circumstances and our ‘new normality’. Many agents have offered 2021 secure risk free bookings and more last minute deals for 2020.

      The important thing to remember is to keep all safety measures and the well-being of the public as our main priority as an island and in business. Ultimately 2021 will depend on the evolution of the virus. We hope 2021 will resume back to normal and see a much improved tourism season, as a company we will be prepared as much as possible in advance for both the best and worst case scenario.

      What can the local community, businesses and visitors do to ensure we are all supporting one another positively?

      As previously mentioned, the general expectation of the public within both indoor and outdoor settings is to maintain respect for one another and uphold social distancing and safety measures.

      It is of utmost importance all visitors respect the beauty of the island and dispose of masks correctly into the recycling bins and not leave for others to clean up, especially on the beaches.

      Lastly, if individuals do not feel fit to travel or feel unwell on arrival, then please follow the guidelines and ensure everyone is kept safe.

      Thanks for staying updated with Prestige Properties Ibiza. We hope you enjoy your stay in Ibiza this season 2020.

      If you are considering travelling to Ibiza this year and are still yet to book accommodation, then why not check out our Ibiza holiday villas on offer.

      Our team members are always ready to help you with your travel opportunities and are happy to assist you with any of your questions, so get in touch with us today!

      Are you considering to buy a property in Ibiza?

      Do you have any questions or need more info?
      Send us a message and we will get back as quickly as possible!

        Ibiza Property Market Report and Forecast 2020

        This Ibiza Property Market Report has been researched and provided by Prestige Properties Ibiza summarising trends over the past 15 years, utilising statistics and impressions from both external and internal sources.

        The analysis draws upon data and figures of property sales and pricing received between 2004 and 2019, and covers house pricing monitored over the course of 2019.

        Home sales Ibiza and Formentera 2004 - 2019

        Ibiza Property Market Price Curve

        The real estate market in Ibiza has demonstrated a durable and stable rhythm in both consumers and house prices over the past 10 years. Following the 2008 financial crisis, Ibiza by comparison to anywhere else in Spain and much of Europe, has exhibited an impressive recovery and a steady increase of both sales and prices.

        However, over the past two years, Ibiza has observed a slight decline in sales. This decline is reflective of recent developments within the newly established planning permission laws here on the island.

        Regulations are now set to ensure all new properties are built under 320sqm in non-urban areas with new build licenses often proving quite hard to obtain and processes being lengthy. Previously built properties on the market can often present legal issues and similar restrictions. While these developments are very positive for the preservation and beauty of Ibiza, it generally leaves a lack of available products. With the strengthening demand for properties, we inevitably find an occurrence of a low supply versus a high demand.

        Opposed to any real estate crisis emerging, the Ibiza Property Market is seeing the value of existing luxury homes stamped as a rare product and even with a dip in sales, the unwavering price curve continues to rise. Therefore, a more mature and sustainable market with long term stability, growth and strength is notable, which indicates a positive future market to come.

        Sales Average Price M2 Ibiza 2005-2019

        Nationalities in the Ibiza Property Market – 2019

        The island of Ibiza has an exceptionally diverse culture attracting many communities predominantly from across Europe as residents, businesses, tourists and investors. International visitors accounted for almost 80% of the total guests in Ibiza during 2019.

        The continuation of international visitors and buyers is the driving demand in Ibiza real estate, proving to raise property values overtime and inevitably improve the overall infrastructure and stability of the property market both in Ibiza and Spain.

        Although statistics for exact nationalities in the Ibiza Property Market are hard to assess, inevitably the British, French and German are incredibly strong, with a marked increase in Belgium and Dutch nationals investing more in property over the past 10 years.

        Ibiza Nationality of Visitors 2019

        Prestige Properties Market 2019

        Ibiza is distinguished by many exclusive and high-end properties. In 2019 the Ibiza Property Market with Prestige Properties Ibiza calculated an average price per sqm of 6.665€.

        The housing market between each municipality naturally varies depending on the style and size of the property, the facilities, surrounding land, panoramic views and the cultural environment of the area.

        The area of San Jose demonstrates the highest demand with a multitude of modern, contemporary and luxurious villas which fulfils many property requirements from international buyers with an average house price of 2.200.000€.

        Eivissa and San Antonio attracts buyers looking for apartments and terrace style housing which can range between 500.000€ – 1.000.000€, whereas in the north, a largely ecological area with a very specific housing style average a price of 2.900.000€. The family friendly area of Santa Eulalia, would average 1.700.000€ for a 250m2 villa with a pool.

        Ibiza Property Market - Prestige Properties Ibiza - Average price per m2 2019

        Typical Properties Per Municipality

        AreaM2Average PriceType
        San Jose3002.200.000€Villa
        Ibiza Town100500.000€ – 1.000.000€Apartment
        Santa Eulalia2501.700.000€Villa
        San Antonio150660.000€.Town House
        North5002.900.000€Country Home

        Conclusion and forecast

        The observed international interest on the island has resulted in an occurrence of a low ‘supply versus high demand’, rendering the Ibiza property market incredibly safe with extremely attractive values on a global scale.

        Following the recent international outbreak of COVID-19, global markets may adopt a ‘wait and see’ approach in the short term. However, although it is difficult to make predictions for the future at this early stage, demand has remained stable during this unprecedented crisis and clients remain positive.

        Recent studies have predicted a potential drop in the Spanish Real Estate market between 5 and 10%. Some areas in the Spanish property market will inevitably be strongly affected by the current crisis.

        However, exclusive locations like Ibiza, are least likely to be moved and we expect to see a year with increased opportunities, some swift sales, yet stable prices for the market in general.

        During the Covid-19 period, we have noticed an overall increase of enquiries and demand for properties on the island via our adapted digital e-working system and new website.

        Here’s an interview with Victor, Partner & Sales Director of Prestige Properties Ibiza, regarding the impact of Covid-19 on the Ibiza Property Market

        Do you have any questions or need more info?
        Send us a message and we will get back as quickly as possible!

          Covid-19 in Ibiza – Interview with Prestige Properties Ibiza

          Interview with Victor, Partner & Sales Director of Prestige Properties Ibiza about Covid-19 and the effect on the Property Market

          What has been the overall impact of Covid-19 in Ibiza?

          Ibiza has seen relatively low figures of Covid-19 in comparison to the rest of Spain and Europe.  The healthcare system on the island has been stable and we are very thankful to all our health care and key workers during this difficult time.   Their impressive work and dedication towards the public is sincerely appreciated and acknowledged by all.  Without their passionate commitment the outcomes of ill-health could have been quite different.

          At the point of publication, a total of 163 positive cases have been recorded in Ibiza and Formentera for Covid-19, with 120 fully recovered and 31 active cases, of which 24 are still in hospital.

          There have been few new cases reported in recent weeks and zero positive cases over the past 5 days.

          Ibiza is a small island.  This fact alone has helped the government implement closures and restrictions at a quick and smooth pace. Since the state of alarm was declared on March 14th travelling by air and sea has been fully restricted to essential activity only.

          Unfortunately, the crisis has had an impact both socially and economically for the residents of Ibiza.  However, the recent plan of deconfinement and the current low risk of infection, hopefully means we will soon be able to ease restrictions and welcome tourists for the summer season 2020. 

          4-steps-deconfinament covid ibiza 2020

          We think it is fair to say, many feel the island and mother nature has received a well deserved rest and we are only reminded to be truly grateful for the paradise we live in.

          Global Property Market

          Has Covid-19 had an impact on Global Real Estate and what changes are we seeing so far?

          Whilst some buyers are adopting a wait and see approach, many others have maintained the same drive to buy with some even increasing in their pursuit during this period.

          Sales numbers on a global scale are down due to social distancing, travel restrictions and closures of businesses, where viewings are not able take place as usual.   However, we have noticed client interactions are consistent and have even increased in Ibiza. Many are aware of the level of competition within the Ibiza property market and want to take full advantage of using every opportunity to buy now or as soon as the restrictions will be lifted.

          One thing is for certain, the new adaptation of virtual viewings are very current.  Aside from professionally produced virtual tours of housing, many agents are adapting and attracting buyers with real-time video tours. In turn, this is leading to on-going interest and even offers and sales still being made.

          Poolside View of Villa in Ibiza

          Ibiza Property Market

          Has Covid-19 had an impact on the Ibiza Real Estate to date?

          It is still too early to fully measure and calculate the impact of Covid-19 in the real estate market in Ibiza.  There is always a delay between the event of any crisis and subsequent economic and industry related statistics emerging.

          What we have evidently seen to date has been very encouraging. The online interest and activity has remained very strong with an increase in interactions (requests, website visits) from potential and future clients.  It appears many are utilising their quarantine time to research and pursue buying their desired property in Ibiza.

          Buyers are far from changing their mind, they want a place in the sun more now than ever before.

          As with any crisis, there will always be new opportunities that follow.  Sadly, some are foreseeing they may be obligated to put their property on the market in order to recuperate financial losses and face some personal situations.

          We are generally not expecting the property market to have a drop, mainly because the demand is high and the supply is always very low in Ibiza.

          How is tourism in Ibiza being affected and how do we anticipate it will affect those with tourism licenses throughout the season?

          Spring season has unfortunately been lost.  Small businesses in Ibiza are perhaps at the highest risk of being affected by the pandemic due to the restrictions that have taken place.

          We hope the Summer will receive international clients from July onwards and clients from mainland Spain will be able to travel for tourism from the end of June (22nd if all goes as per deconfinement plan).

          Individual situations for those with tourism licenses will very much depend on the needs of each owner, their mortgages, general income and their dependency on tourism rentals as a main source of income.

          Important Information for Property Sellers in Ibiza

          What is the best advice you could offer sellers during this important time?

          Remain calm and ask your agent for advice.  Depending on each individual situation, we can plan a good strategy to succeed in the sale of your property in Ibiza

          Should sellers keep their property on the market and take a ‘wait and see’ approach? or should clients wait until this pandemic is over?

          Keep your property on the market. We are all working remotely from home with up to date technology. The notable rise in online activity we are currently experiencing means now is the perfect time to catch the attention of clients ready for their future visits.

          Ibiza Prestige Properties office

          What is Prestige incorporating as an agency to ensure the marketing and sales are maximised during these uncertain times?

          We have stayed open throughout. All our agents are active. We have been spending more time than ever preparing our website and the presentation of our properties, as well as setting up our new virtual viewings service.  Potential buyers are still able to get a closer feel for properties on the market and can continue with their buyers journey.

          We have also been closing a few deals over the past weeks, mostly with clients who have been looking with us for some time, where we already really understood what they required.

          Important Information for Property Buyers in Ibiza

          What is the best advice you could offer buyers during this important time?

          Use this time to effectively research the current property market in Ibiza.  We are here to help you with your buyer’s journey.  Take the time to get to know your agent and allow for your agent to better understand your vision and goals in purchasing your dream property.

          There’s plenty to focus on in the meantime before you can visit the island to set up viewings.  Learn about finance, legalities, be fully prepared for the purchase.  When the time is right you will be ahead of all the finer details and can start viewings immediately, ready for the perfect opportunity.

          Should buyers continue to seek a property on the market and take a ‘wait and see’ approach? or should clients be more cautious?

          Now is the time, everyone is available. Learn as much as possible and plan a good selection of properties to see for your next visit.   Be sure that your agent is ready and understands your requirements and contacts you as soon as a new suitable deal comes up.

          Are international buyers able to proceed with purchasing a property during this time?

          Yes, we have been able to work with the help of lawyers and other advisors. Notaries are open, and we can sign everything from a distance with POA.

          Important Information on Mortgages in Ibiza

          Will applying for a mortgage be affected by Covid-19?  Will current mortgage applications be delayed for processing until the pandemic is over?

          Initially banks were required to hold off processing new mortgage applications during the beginning of the state of alarm.  However everything is back running again as normal. Processes might be a little delayed but everything is back on track and operating like before.

          Ever since Ibiza entered the first phase of deconfinement, viewings to properties are available again and experts can continue with valuations as well.

          If your personal financial situation is not affected then you should be able to proceed with your mortgage application.

          Mortgage approvals

          I have a mortgage offer but will it expire if I don’t proceed to buy during this crisis?

          The state of alarm normally postpones contract deadlines.  However, each case should be reviewed and confirmed with your lending bank.  To proceed at a later date should be possible due to the unusual circumstances.

          Will there be any long-term consequences of coronavirus on getting an international mortgage?

          This question is difficult to answer at the present time.  We need to see the overall outcome in a couple of months relating to the financial world. Interest rates might vary. However, everyone is eager and intending to restart the economy as soon as possible.  We will pass this crisis as we have done in the past.

          Banks like many other businesses will need to adjust their working protocols to ensure mortgage applications are effectively being processed during such uncertain times.  We expect to see better and improved technology and more online flexibility in this industry, just as much as we will see in Real Estate, where systems and e-working will become faster and more efficient to apply for mortgages.

          Future Outlook

          Do you think Covid-19 will have an impact on European and Ibiza’s Real Estate in the long-term?

          It is still very early to predict the level of impact in the long-term. There will inevitably be changes and marked impressions on a global scale.  However, until we understand the length of time it will take to return to ‘the new normal’, we are unable to further analyse the future of the property market. 

          It ultimately depends how clients are financially affected and their capacity to spend. This crisis is multifaceted and will affect the economy and individuals in many different ways.

          General expectations foresee a drop between 5 and 10%.  However, this is a variable figure and the impact will vary from one area to another. Recent studies show clients are now looking for more space instead of proximity to city center. This can affect the property market in cities. From this study alone, you can see some markets will suffer whereas others are more likely to benefit.

          In Ibiza, as we have shown in our 2020 Market Report, the low supply versus high demand can predominantly predict sales on the island are less likely to be affected.

          We are also noticing an increased interest for quieter and safer environments.  It would appear the crisis has only reminded people that it might be time for a change and the island can offer their desired environment.

          Exclusive places will always remain strong in difficult times. There will be some likely opportunities for buyers in the short-term, but in the long term we expect the market to recover quickly.

          When will the property and tourism market start to truly see its effect of the pandemic?

          We have only recently started deconfinement.  The next weeks determine how quickly we return to normality. This is an unprecedented situation and we can only see in the short term at this time.

          The European Union is currently discussing how to proceed with the reopening of the frontiers. Tourism accounts for about 10% of the European economy and about 25 million jobs and is therefore the interest of all parties to reactivate tourism as soon as possible.

          We hope to be able to welcome you again in July, but until we know for certain let’s stay safe and keep positive. While we wait, we have adapted our way of working and you can see this on our new web page: Real Estate Virtual Technology.

          Zoom Video Meeting - Virtual Viewing

          We are available to advise you anytime, whether you are curious to learn more about Ibiza and its market or if you would like to do a virtual tour of one of our villas.

          Here at Prestige the whole team is working everyday in preparation for when we can meet our clients. We are really impressed and motivated by the amount of messages that we receive from all of you, full of positivity and the will to pursue the dream holiday or the perfect new home in the sun.

          If you are considering buying a property in Ibiza, then why not take a browse at our current Ibiza exclusive properties available.  

          Our team is always ready to help you along your buyers journey and ensure you discover your dream home with Prestige Properties Ibiza – contact us today

          Do you have any questions or need more info?
          Send us a message and we will get back as quickly as possible!

            Everything you need to know about getting a mortgage in Ibiza

            How easy is it to get a Spanish mortgage to buy a property in Ibiza?

            Ibiza’s real estate differs slightly compared to the rest of the Spanish property market. Partly due to the islands level of exclusivity, but also additional factors may apply, such as the particularities of inscription within the property registry or legalities tied up within the property – which is key information when asking a bank for finance. Sometimes such legalities may make it more difficult to gain a mortgage compared to other parts of Spain. However, with the help of a good adviser or an experienced broker, such matters can be solved, and it is not an impediment to get finance.

            Spanish banks are open to lend to non-resident clients, but they would need to make a proof of solvency together with the compliance aspects.

            Credit policies will of course vary slightly from one bank to another and they will inevitably make changes to their credit policies over time.

            It is often necessary to get help from an external professional broker, separate from the bank to help overcome these types of issues/obstacles and to better understand which mortgage application suits which bank at what time.

            Nowadays it is indispensable not to limit your search for financing to Spanish banks, since some applications can only be financed through international banks for the reasons mentioned above. Access to this kind of funding is only possible through a broker.

            Es Vedrà Ibiza

            Can I get a mortgage in Ibiza?

            The short answer is: Yes, you can. Like anywhere else, you will have to fulfill certain criteria regarding income and fluidity, and the legalities of the property you wish to take the mortgage out over also plays an important part, however, there are generally few obstacles to asking for a mortgage in Ibiza. Below some more details in different scenarios:

            Can a non-resident get a mortgage in Ibiza?

            Yes, from January to August 2019, 1.096 mortgages were processed in Ibiza and Formentera, (21% less than in 2018) and about 30% of the operations were signed by overseas clients.

            It is more than possible for a non-resident to get a mortgage in Ibiza. However, generally speaking, the mortgage process is a lot more complex than it used to be, since the new Spanish mortgage laws were put in place in June 2019.

            However, now that banks and notaries have had the time to adapt their internal processes to be in accordance with the new law, we are confident (and already seeing) that the overall processes will run more smoothly in 2020 and going forward.

            If I’m self-employed can I get a mortgage in Ibiza?

            Spanish banks will always consider a self-employed client. However, proof of income (solvency) is fundamental to the risk assessment and approval. A non-resident client would need to be prepared to send proof of their financial history and employment information. These can be submitted through company balance sheets and an explanatory letter from their tax advisor or chartered accountant for the bank to understand an individual’s income situation and yearly net income over the last 3 years.

            Is it possible to get a non-status mortgage in Ibiza?

            No, non-status mortgages do not exist in Spain. Spanish banks must prove the income of every mortgage applicant to assure the repayment of the mortgage is guaranteed. Due to the new Spanish mortgage law, everyone must adhere to these strict calculation rules. The guarantee (in this case the property) is additionally necessary, but not the only decisive factor. As you can´t get a non-status mortgage in Spain, an inquiry with international banks would be advisable.

            Is it possible to get an Equity Release with Spanish banks?

            No, in Spain, equity release is not accepted for taking liquidity from the property. This is usually possible when applying at an international bank. However, a mortgage over an existing property, free of charges (not for purchase reasons) is possible to get from Spanish banks for some specific purposes such as renovation or purchase of further land or another property etc.

            Will my age affect my getting a mortgage in Ibiza?

            Spanish banks generally lend up to 25 (exceptionally 30) years with final payments finishing by age 70. For older clients (over 60 years) options and solutions can be discussed with your bank or mortgage broker.

            Will staff at banks speak my language when applying for a mortgage in Ibiza?

            Generally the staff at banks in Ibiza do speak various languages, however the level of fluency might vary and this might be one of the reasons for you to feel more comfortable dealing with a mortgage broker who speaks your language fluently and who can represent you and negotiate on your behalf.

            Can foreigners get a mortgage in Ibiza?

            Yes, they can get a mortgage from either a Spanish bank or from an international bank.

            How much deposit do I need for a mortgage in Ibiza?

            Most Spanish banks offer 60% LTV (Loan to Value) to non-resident buyers, meaning the client would need a 40% deposit + about 10% expenses. Some non-resident clients could also be offered up to 70% depending on the bank. (This would be one of the most important factors to take into consideration when applying for finance with a bank.)

            What is the maximum amount I can borrow to buy a property in Ibiza?

            There is no maximum amount, it’s within the limits of the LTV and the income limitation.

            How do I apply for a mortgage in Ibiza?

            The easiest way is by contacting the lending bank(s) and/or mortgage broker for advice and help with the mortgage application (with up to 1-3 banks).

            Which documents do I need to apply for a mortgage?

            It depends on your purchase proposal (existing property, property under construction etc.) and on your personal income situation.

            Some basics would include a NIE (Número de Identificación Extranjero), passport, proof of income, credit report from the corresponding Credit Bureau, bank statements, proof of own funds, etc. Banks and brokers will provide you, from the first contact, with a full list of documents according to your situation.

            Things I need to consider before applying for a mortgage in Ibiza:

            How much can I borrow for a mortgage in Ibiza based on my income?

            Spanish banks consider your yearly net income as the basis of their calculation; especially if you are self-employed.

            Any credit and loan commitments should only account for 30-35% of your yearly net income. This percentage will also consider the percentage of any monthly credit commitments you have outstanding in your home country and will influence your credit facility in Spain.

            How long does it take to get a Spanish mortgage to buy a property in Ibiza?

            Since the application of the new mortgage law in Spain (June 2019), Spanish banks can be quite slow. Here, the work of a mortgage broker is to assist in making these processes faster, easier and a lot smoother.

            Principally, it depends on how extensive the work is for the bank to complete checks and calculate their client’s income. The more proactive clients are submitting and completing their documents the quicker the process becomes.
            Once all documents have been submitted to the bank and, if necessary, any further requested documentation has been received, the fastest scenario is approximately 5-6 weeks.

            The process deadline can certainly be extended considerably if there are discrepancies with the valuation report or if the financing must be carried out by an international bank. It is advisable to ask the property seller for a reasonable period in order to get the mortgage arranged without pressure.

            In which currency can I repay my mortgage in Ibiza?

            Since the new mortgage law, some banks offer mortgages in the client’s national currency and euros or one or the other. Certain banks have strict policies about the currency options depending on your nationality and the currency in which you receive your income. It is advisable to ask advice depending on your personal circumstances.

            What is the cost of getting a Spanish mortgage?

            The costs of getting a Spanish mortgage include things like: taxes, insurances, opening fees, property valuation report, and potentially a broker’s fee. Read on for more details on each of these subjects.

            What are the taxes on Spanish mortgages?

            The tax on Spanish mortgages is called AJD (impuestos de actos jurídicos documentados) and must be paid by the bank due to a recent court ordered direction.

            This makes mortgages even more interesting. Clients can save a lot of expenses accumulated from this tax, 1,2% over the mortgage responsibility in 2019 (1,5% from 2020 and so on).

            What insurance do I need when I start a mortgage in Ibiza?

            The banks require at least home insurance to ensure the mortgage guarantee (the property). Most banks also require life insurance in order to offer the client a better interest rate. Please ask for comparisons of different bank offers.

            What other optional insurances are there?

            You can opt for life insurance as an alternative option. Some banks offer health insurances or even alarm systems for your holiday home in order to be able to offer you combined sales products, better interest rates and conditions.

            Are there any extra costs of applying for a mortgage?

            It is always required to have a property valuation report of the property you wish to purchase, as it contains a legal report of the property. Usually, this must be paid by the client.

            One bank in particular will actually offer to pay the valuation report on the condition the client signs the mortgage loan with them, however; it is advised that clients should always compare a few different mortgages on offer.

            Most banks charge an opening fee of about 1% over the mortgage amount. Some partner banks offer mortgages free of an opening fee, but clients should compare the overall cost consisting of the total interest rate, total term, LTV offered and benefits of the combined sales products.

            A mortgage broker will also charge a commission. (Balearic Mortgage Services is one of the fairest providers with a 0.25% commission, since most other providers charge the customer 1% after completing the mortgage).

            How do I get a mortgage from my home country to buy a property in Ibiza?

            You can apply in your home country for a mortgage but there are a lot of advantages of mortgaging in Spain, where your property is located. It could mean tax advantages, more liquidity and have little effect on your credit facilities in your home country.

            In very special cases and depending on your nationality, we could possibly utilise a mortgage from a client’s home country and take the Spanish property as guarantee. It is a matter of individual case study.

            Can I get a UK mortgage for Spanish property?

            Generally, this is not advisable and, in most cases, not possible. In exceptional circumstances gaining a UK mortgage is an option, but in very rare cases. Usually a client would need to use a guarantee over their UK assets.

            Can I get a Spanish mortgage with bad credit?

            It depends on the type of "bad credit" (incidence). In most cases this would not be an obstacle. Each case is individual and would need to be assessed. Such issues need to be clarified in the early stages or during the initial contact with your bank or mortgage broker.

            Why should I get a Spanish mortgage even if I can get one back home?

            It could have tax advantages, mean more liquidity, possibly better interest rates or conditions and at the same time it doesn’t affect your credit facilities in your home country.

            What types of Spanish mortgages are there?

            Fixed rate, variable rate, mixed rate, individual or joint-mortgage, construction mortgage, holiday home mortgage, primary residence mortgage, investment mortgage, commercial mortgage, and many more. Read on for more detail about some of them.

            Can I get a fixed rate mortgage?

            Since the implementation of the new mortgage law, a fixed interest rate is no longer available to all the non-resident clients. It does however depend on the nationality, place of residence etc. The bank or a mortgage advisor can advise clients on all these questions.

            What is a "Euribor- tied" mortgage?

            This means a type of mortgage in which the interest rate is not fixed. Instead, interest payments will be adjusted yearly at a level above a specific reference rate (such as EURIBOR + 1,25) over the whole life of the mortgage.

            Can I get a joint mortgage in Ibiza?

            Yes, absolutely, and there are a lot of different mortgages available such as: Fixed rate, variable rate, mixed rate, individual or joint-mortgage, construction mortgage, holiday home mortgage, primary residence mortgage, investment mortgage, commercial mortgage, etc.

            Where can I find a mortgage calculator for Ibiza

            To help simulate and calculate a mortgage you can find a mortgage calculator at the bottom of this homepage: https://balearic.mortgage

            What are the Spanish mortgage rates for 2020?

            The mortgage rates a bank offers to a specific client depends on the financial potential of the customer and solvency. The higher the potential of a client, the better the rate.

            The best rate I have signed recently was with a very specific, non-resident client with a variable eur + 1%; with other clients I have signed eur + 1,25% which is still a very good interest rate and in fixed interest rates, 1,75%.

            The fixed rate offer depends on the total term, the longer the term, the higher the interest rate. Only with the help of a mortgage broker can the banks offer their best interest rates as we often have a special agreement with our partner banks.

            Should I use a mortgage broker when applying for a mortgage in Ibiza?

            There are many benefits to using a mortgage broker when applying for a mortgage in Ibiza, some of which are detailed below. However, it is by no means necessary. Those who have time and patience can apply for a mortgage by going straight to a local bank of their choosing.

            Will I save money with a mortgage broker?

            The commission of 0,25% is worth having a mortgage broker as you can save a lot of money by getting the best available mortgage on offer for you in the moment of your application.

            A broker will take your specific situation and requirements into account and will choose the bank best suited for your application. A better interest rate may save thousands of euros over the total term of the mortgage.

            Is using a mortgage broker faster?

            Definitely! A mortgage broker will help you to get the mortgage approval as quickly as possible. From the first contact a mortgage broker will list all the (initial) required documents and follow up with the bank regularly to monitor the process. This is incredibly important as Spanish banks are often overloaded with work and normally do not actively return to clients with updates and outcomes of the application. Clients are often used to banks being more interactive in their home country, but the experience can be very different in Spain.

            What other benefits are there when using a mortgage broker in Ibiza?

            A broker will help you understand all the documents that need to be submitted and will explain the different processes and legalities of the mortgage in your own language.

            Mortgage brokers will also assist with the formal procedure with the bank, notary and lawyers and the real estate agents where necessary e.g. for the property valuation report.

            All conditions and terms will be negotiated on a client’s behalf with a professional mortgage broker. They will save you from any unwanted surprises along the way and help you over the entire mortgage process and even accompany you to the notary appointment.

            A broker’s relationship with different banks guarantees very special terms and treatments that might not be possible if you approached the bank as someone "unknown" to them.

            What effect does the new mortgage law have on the course of a mortgage?

            The primary reason behind the new legislation based on the Mortgage credit – Directive 2014/17/EU is increased consumer protection. This is to be achieved through a greater level of information for the future borrower by providing FEIN and FIAE. These standardised documents are designed to give the best possible overview of the terms and conditions.

            The new law makes the bank pay all the mortgage related costs except the property valuation report. It makes the early repayment cheaper and limits the selling of the attached products ("vinculaciones"). But the entry into force of the new law not only brought benefits for the customer this year.

            The notary of Formentera Javier González Granado explained in the "Diario de Ibiza" recently:

            The new legislation introduced "a system of telematic processing whose adaptation cost quite a few entities." In addition, it establishes a processing of the mortgage loan "more complex than before, although it gives more security to the consumer." Before, the law established as a voluntary the previous visit of the consumer to the notary before the signing of the mortgage: «Now it is mandatory. And also very strict deadlines are marked that cannot be skipped in any way. That, without a doubt, has meant a paralysis of the procedures until it has entered into force, from spring to early summer, times when they were absolutely stagnant".

            To read the full article go here "Cae un 39% el importe de las hipotecas constituidas en las Pitiusas este año"

            For 2020 we expect a much better performance and we’re sure that the clients will enjoy the advantages of the new law without suffering the handicap of the processes, as banks are now getting better prepared.

            Thank you to Bettina Lorenz, CEO & Founder of BMS (Balearic Mortgage Services), for taking the time to speak with us. For more information on how to successfully apply for a mortgage in Ibiza, visit Bettina’s website.

            Check out the 18 Great Reasons to buy with Prestige Properties

            Do you have any questions or need more info?
            Send us a message and we will get back as quickly as possible!

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