All you need to know about selling your property in Ibiza

Is it time to sell your Ibiza property? With the real estate market at a stable value, Prestige Properties Ibiza can help you sell your property at a great price and with ease.

Find out everything you need to know about selling your villa or apartment on the magical white island of Ibiza right here with us!


Is ‘now’ a good time to sell a property in Ibiza: an overview of the real estate market

Besides being a popular destination for tourists, Ibiza has also become a popular location for international buyers seeking a permanent family residence, a second home or an investment opportunity. 

There are several reasons why internationals consider buying property in Ibiza, including the wonderfully mild all-year-round climate, beautiful beaches, a lively atmosphere, remarkable architecture, and a unique local flavour. Of course, we shouldn’t forget the great international schools, the high standard of living, and the buyer’s investment return. For these reasons, we see a constant high demand versus low supply for Ibiza real estate, making property values stable and a favourable time to sell your property.

For more information on the Ibiza property market in 2022, check our recent blog, ‘Is 2022 a good time to buy a property in Ibiza’.


Selling your property in Ibiza with a trusted and reputable agency: Ibiza Real Estate Agents

Real estate agents who understand the Ibiza market can help you buy or sell a home with excellent results. Your property is more likely to be sold or found quickly and efficiently if you use a reputable and experienced agency. Nevertheless, it is challenging to choose which real estate agent to trust on the island due to the vast number of agents available. 

Choosing a reliable agent is essential. A real estate expert should have education, credentials, certifications, and insurance, just like any expert in any field. Look for well-trained agencies registered with a professional body in Ibiza.

For more information on finding a reliable real estate agent, look at our guide, ‘How to find a reliable and professional real estate agent in Ibiza’.


How will my property be valued: understanding real estate prices in Ibiza

To sell property in Ibiza profitably, we would always advise you to follow the current market prices recommended by your trusted agent. Understanding the local market well from your agent’s expertise is very important. Valuations can vary greatly depending on the property, the town, proximity to the sea, and the area’s status, and the current market. Therefore, all these factors should be considered when selling real estate in Ibiza.

Wish to get a valuation from one of our experienced real estate agents? Look no further; contact us today!


Selling your property in Ibiza: legalities, taxes and procedures

Numerous policies, procedures and costs need to be considered when selling your Ibiza property. For example: 

The contract must be signed in the presence of both parties and the public notary. If the buyer or seller cannot participate in the procedure, attorneys may act on your behalf. In particular, the notary checks:

  • certificates confirming the absence of encumbrances of the object;
  • the correctness of the contract;
  • the parties have bank accounts in local banks necessary for the conclusion of the transaction.

The subsequent transfer of ownership when selling a property in Spain is also controlled by a notary. To speed up and simplify the procedure, you can enlist the support of a lawyer who will help prepare documents and avoid several difficulties. 

Like in other European countries, both parties must pay specific tax fees when selling real estate in Spain. From the seller’s point of view, when concluding a transaction, the following costs should be expected:

  1. Municipal Capital Gains Tax. 
  2. Income tax. 
  3. Tax on changes in the cadastral value of an object. 

In our guide on the property selling process, you’ll find all the information you need, in detail,  including a thorough list of procedures, taxes, costs, and some handy tips and points of reference. 

This guide can be used throughout your seller’s process, and if you need any additional advice, we will be happy to assist you.

Sell a villa in Ibiza - legalities, taxes and procedures

Are you ready to put your Ibiza property on the housing market?

A professional real estate agency with the necessary skills, knowledge, and infrastructure makes selling a home much less stressful. You should always contact a few companies and ideally arrange to meet at their physical offices to better understand their markets, work ethic, and personal connections.

At Prestige Properties Ibiza, our extensive experience in the local market will help you find the right buyer in no time at all. We can confidently sell your home with great satisfaction. Need to know more, check out our website article, ‘15 reasons to sell your property with Prestige Properties Ibiza’.

Our team is always ready to help you with your seller’s journey and will ensure you get the best opportunities with us, so why not 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!

    Is 2022 a Good Time to Buy a Property in Ibiza?

    The Ibiza housing market significantly boomed during the Coronavirus pandemic, mainly due to a surge of interest from international buyers that were not economically or geographically restricted, and thus saw an opportunity to move away from the big cities and relocate somewhere quieter and more natural. This buyer interest inevitably created a high demand for properties on an island with a small supply.

    In fact, this demand which began in the summer of 2020 and continued into the start of 2022, made Ibiza’s property prices reach a record high and the real estate sector experienced one of the most optimistic years in over a decade. This not only brought joy to sellers and the real estate industry in general, but also created a range of long-term investment opportunities for buyers.

    So, is this boom anticipated to continue, is now still a good time to buy, and what are the 2022 predictions for Ibiza’s real estate?

    

    What has the General Balearic Property Market looked like over the Past Decade?

    If we rewind back, we can see from our recent article on the 2021 Annual Ibiza Property Market Report and 2022 Forecast that over the past decade (pre-pandemic), the Balearic Islands have shown continuous growth with sales and prices reaching a peak in 2017. These sales and price averages remained the norm, and it was not until late 2019 that these statistics mildly began to drop, suggesting that the market was experiencing minor stagnation. Naturally, it did not help that the real estate business around the same time started to experience less activity due to COVID-19’s uncertain status and subsequent global lockdowns.

    This stagnation, however, must be noted as a reflection of the Balearic Islands as a whole, and when comparing the overall market to the Ibiza luxury property market, the impact was most certainly less significant.

    Yet, despite a temporary pause in buying activity, the interest has since quickly recovered and now regained the highest pricing since 2007.

    What has the General Balearic Property Market looked like over the Past Decade?
    evolucion del precio de la vivienda en islas baleares

    What did Ibiza’s Luxury Housing Market 2021 with Prestige Properties Look Like?

    Using Prestige Properties Ibiza’s sales data, we calculated:

    • An overall 21% increase in price per square metre between 2019 and 2021 across all areas on the island
    • Up until October 2021, sales numbers have risen by 56% compared to 2019 and turnover has risen by 95% in Euros
    • The number of active enquiries and website visits increased by an overall 36%

    For the Full Market Report and Statistics, please visit our 2021 Annual Ibiza Property Market Report and 2022 Forecast

    2022 Forecast and is now a Good Time to Buy a Property in Ibiza?

    Our statistics show Ibiza’s market potential, which not only survived but flourished during the pandemic, giving us confidence that the island will remain a top destination on an international scale for the foreseeable future 2022. House prices in Ibiza’s luxury property market are expected to keep rising steadily, making for an attractive investment. Despite this, we don’t think sales will continue to increase as they have in 2021. With the post-pandemic effect fading, we expect the sales boom of 2021 to slow down, especially as we are increasingly seeing fewer sellers as we move into a new year.  This continues the race against supply and demand, thus promising us a steady increase in property value.

    As we move into 2022 and the island is exhibiting even more growth in general, especially in the hospitality and tourism sector, and is becoming a more desirable and trendy place to live, we are starting to see families hitting the long-term rental market in order to be close by and proactive in their buyers’ journey, even if that means waiting for the right property to come onto the market.


    If you’re interested in viewing our Prestige Properties Annual 2021 Report or you would like to speak with an agent about the current market and investment opportunities then contact us today! We would be more than happy to talk you through Ibiza’s Real Estate potential.


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

      How to find the Best Real Estate Agency in Ibiza

      You can expect a great experience when buying or selling a home in Ibiza if you work with a real estate agency who knows and understands the market. A reputable and experienced agency is more likely to sell or find your property quickly and efficiently, at the best possible price. But with so many real estate agents available on the island it’s hard to know who to trust. Finding the perfect match may prove more difficult than you expect.

      So, to help with the real estate selection process: here is some useful advice and professional tips on choosing the very best Real Estate Agency in Ibiza.



      Choosing the Right Real Estate Agency in Ibiza

      To begin, you might want to speak to those around you who have recently worked with an Ibiza real estate agency and ask them for recommendations. Finding the right real estate agent is a very personal process and a referral is often an incredibly valuable resource. However, if you are completely new to Ibiza then these may be hard to come by. Either way, we advise any client who is planning to buy or sell a property in Ibiza (with or without recommendations) to follow the advice outlined below to ensure they are working with a trusted realtor.

      Ibiza property with pool and sea view

      Find a Reliable and Professional Real Estate Agent in Ibiza

      Select an agent who is reliable in every sense of the word. Too many real estate agents in Ibiza are working virtually as "one-man bands" without an official, physical office that they can show to the public. You should always be able to visit a reliable real estate agency in person and find out what they’re doing and how they operate.

      Just as an expert in any industry would have education, credentials, professional body certifications, and insurance, real estate should be no different. Look out for agencies that are well-trained and registered to a professional body in Ibiza like PIMEEF and APIBIZA. 

      Experience and professionalism are unmatched advantages when buying or selling a home. Expert agents can help you find the perfect property in your price range, discuss neighbourhood demographics, introduce you to local schools and places of interest, as well as provide accurate valuations for sales, and always negotiate the best price and terms. In other words, a good agent will remain in a client’s corner throughout the entire process and will leave no stone unturned. Even if an individual agent is new to real estate, the experience, and support of the company he or she belongs to is crucial.


      Well-Connected Real Estate Agents in Ibiza

      In Ibiza, great estate agents will be well connected: demonstrating a good portfolio of direct listings and shared listings with partners of integrity. They will be able to provide a full range of services to clients in collaboration with property managers, builders, architects, lawyers, notaries, and gestorias, all in a variety of languages. They will also have access to the entire Ibiza property market, enabling them to offer clients the most suitable home, even if it is listed by another agency.

      Should you list your property with various agencies or just one? Both options have positives and negatives; for a more detailed analysis read our article on "Why sign an exclusive mandate with Prestige".

      villa-ambre-ibiza

      Ibiza Property Agents With the Best Marketing Efficiency and Online Presence 

      It is always essential to go online and search for ‘real estate agencies in Ibiza’. What are the first results you see? How is your potential agency position on Google? Do they appear on the first page?

      The real estate agency that excels in its marketing and online presence will always appear at the top of your Google search results. Additionally, they will have a user-friendly website with a wide range of well-presented properties. Ensure that the property descriptions are well written and there is consistent professional photography, videos, virtual 3D tours, and notes on special features and unique selling points throughout.

      How about their offline marketing? Real estate agents with authority in their industry have regularly printed publicity through billboard advertising, company cars, public relations, and magazines. Finding out your chosen agency’s online presence, presentation and marketing strategy is a clear way to determine its strength in the real estate sector, especially when it comes to selling your home.

      While investigating an agent’s online presence, it’s also a good idea to take a look at their client experiences, which can usually be found on their Facebook or Google Reviews pages.

      Transparency in the Ibiza Property Market

      You should always hire a real estate agent who is upfront, honest and transparent. Don’t be shy to ask questions or ask for all the information you need. Make sure all the fees, costs and general agreements are clearly stated and acceptable to you. It is extremely important that you always feel comfortable during the entire process, that you are properly informed, and you are able to ask every single question you have (regardless of how big or small they may seem). If you ever feel you are being pushed to make any type of a decision, or someone is withholding information, then don’t be afraid to move on. Invest time in finding someone you respect and trust.


      Choose an Ibiza Agent who is Right for You Personally 

      The process of buying and selling a home is considerably less stressful if you work with a professional real estate agency that has the necessary skills, knowledge and infrastructure. Once you’ve narrowed your options down to a handful, contact them and ideally make an appointment at their physical offices to get a real feel for their market placement, work-ethic, and to see if you connect with them on a more personal level too. 


      We hope our article, "15 Great reasons to sell your property with Prestige Properties" will give you confidence that there are estate agents in Ibiza that are every bit as reliable, trustworthy, and efficient as we have described above. 

      Prestige Properties Ibiza - How to find the Best Real Estate Agency in Ibiza
      Prestige Properties Ibiza -  Best Real Estate Agency in Ibiza

      If green living is an important factor to you as a homeowner and citizen, you may wish to consider an agency that advocates for the same environmental practices and ethical awareness. Check and see what kind of Social & Sustainable Activities your chosen Real Estate Agency in Ibiza partakes in and if their values as a company match yours.  For more information on our personal Corporate Social Responsibility follow our link below.


      Thank you for staying updated with us at Prestige Properties. We hope to see you soon!


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

        Renovating a Property in Ibiza – Everything you need to know!

        Renovating a property in Ibiza can be a very rewarding experience! A perfect opportunity to create your dream home with character and a style all of its own. If the planning and renovation process is done properly, the investment can also pay off with an impressive return.

        However, serious property renovations can also be very challenging. A lack of effective planning, previous analysis and project management can cause renovation projects to eat up money and cause a lot of unwanted stress. 

        For us at Prestige Properties Ibiza and for our clients, we feel the benefits far outweigh the risks. With the right knowledge and team behind you, renovating a property in Ibiza, be it a traditional finca farmhouse or restructuring an entire villa property, can be an incredibly exciting journey that is definitely worth the effort and the final result.

        So, if you are looking to buy a new house in Ibiza with a view of renovating, then check out our guide below on Renovating a Property in Ibiza – Everything you need to know! which contains everything you need to know about renovating a property in Ibiza.



        Property Renovations in Ibiza – Initial Considerations

        When considering any aspect of the property market in Ibiza, it is important to be fully informed. Renovating a home can be a complex process that can lead to unforeseen problems and costs, so being well prepared is key to any successful renovation project. 

        Properties in need of a renovation can usually be found and bought through local real estate agencies. However, finding a property with the right renovation potential in the right location through a trusted agent is the first step.

        If you go any further than a replacement of installations and paintwork, our first (and, as you will learn, ultimate) recommendation is to seek the advice of a qualified, local architect. Despite popular belief, an architect in fact optimises and economises the costs of a renovation (moreover of guaranteeing the quality of the work) and unifies the management of trades and suppliers (masons, plumbers, electricians, builders, suppliers, carpenters, etc.). He is the central figure in the renovation puzzle who will analyse the legal status and the current state of construction of a property and based on this, estimate the legal and material possibilities and average costs of intervention respecting the town’s planning regulations.

        So, before you begin your renovation and get started on your project, here is an overview of the different steps you need to consider, ideally in this very order:


        Legalities: 

        • Analysis of the property’s current legal status: if it has an original building licence from the Town Hall, if there are any "non-registered" parts and if so, what can be done with them depending on their nature (year of construction, etc.). This is a very important step to avoid problems further down the road.
        • Analysis of the possibilities: the potential of the house in view of the urban planning regulations. Degree of intervention to be performed, maximum of m2 to be extended according to local and regional laws. 

        Effective Planning: 

        • Analysis of the current physical state of the property: state of the structure, state of the installations, watertightness, etc…
        • Definition of the renovation and proposal for improvements.
        • Permits and licences: communicating with the Town Hall and applying for the necessary permits
        • Estimation of total costs 
        • Simulation of planning and runtime of project

        Execution and Control: 3, 2, 1… Action!

        • Execution of the works. Checking that the works are being carried out to satisfaction on a technical level. More extensive renovations will also require on-site management: coordination of the trades, control of the work carried out and the execution according to deadlines.


        Before
        After


        1. Planning your Ibiza Property Renovation Project Effectively

        "Before you begin with any physical works, it is vital to have the big picture and a long-term vision in place. Taking the time in the beginning and creating a really detailed and well-thought-out plan will help with getting accurate building costs before you start the renovation, it will eliminate the need to make rushed (and possibly bad or regretful) decisions, and at the end of your renovation, you will (hopefully!) end up with a consistent look and feel throughout your home that is every bit what you imagined it would be!" – Robin van Den Driessche – Architect & Founder at RVdD Arquitectura


        Renovation & Construction Works and Construction Surveys

        Often it is not possible to get an accurate idea of the cost or extent of renovation until the property has been acquired and a proper evaluation of the structural integrity and foundations of the existing building has been made. 
        It is advisable to obtain a full building survey at the time of purchase to gain a better understanding of the structural and superficial works that need to be considered.

        This information can then be used by architects and construction workers before carrying out the necessary work, when renovating your home.

        Remember that there is almost always a solution to most structural problems. While these may cause an increase in your renovation budget, identifying them early will allow you to plan better and make the right future decisions.

        In Spain it is usually an architect or a technical architect (Arquitecto Técnico) that can carry out the necessary Construction Surveys.


        Choosing the Right Architects and Contractors

        As mentioned in the introduction, the use of an architect is an invaluable asset to any renovation project and should not be regarded as an optional "extra". The reality is that many of those direct client-builder renovations without an architect or project manager end up with legal problems (extensions without a licence, fines), with construction problems due to poor execution (without a technician to supervise), with cost overruns (without economic control and hidden commissions). Apart from their role in literally managing and overseeing the entire renovation project from start to finish, their experience and training gives them the unique ability to see things from the widest possible perspective. A recommended architect like RVdD Arquitectura can make a real difference to the project, focusing on the finest details while keeping in mind the larger impact of the entire design. Additionally, under the Spanish building regulations and laws, an architect is initially responsible for ensuring that all safety measures are followed during renovation projects. 

        To choose a suitable architect or builder, it is advisable to ask for demonstrable references such as photos and plans of renovations already carried out, and if possible ask for photos of before and after the renovation. In them you will be able to see the architect’s ability to transform spaces, and the quality and level of detail of the builder. If they also come recommended by someone you trust (a family member or friend who has already worked with them), it will be a great advantage and a sign of confidence on which to rely.


        Extra Tip from Robin:

        To carry out a quantity survey of the work is essential in order to be able to compare quotes from different builders. Without them, extra work will appear as you go along and the final budget will go up, which could have been avoided with a more accurate forecast.

        Before
        After


        2. Creating an Efficient Timeline 

        A typical renovation schedule depends on the type of project and on the location of the property. To estimate a deadline and create an overall timeline, three things should be taken into account.


        Management of Permits and Licences in the public administration

        The management of permits and licences with the public administration varies according to:

        • Type of renovation: If it is a simple renovation (change of interior partition walls, coverings and materials) with a "Previous Communication" (Comunicado Previo) it can be started at the same moment of notifying the Town Hall. If it is more complex (modifying the façade, habitability and number of bedrooms, or touching something structural) then an Urbanistic Licence must be applied for, and it can take from months to a couple of years.
        • Type of land category. If it is urban, the concession of a license is quicker than in rustic land, as in the latter the applications go through more public bodies (Consell Insular, Patrimonio, Recursos Hídricos). In urban land, for extensions, it is usually 1 – 2 years. In rustic, for extensions, 2 – 3 years.

        That is why good technical/legal advice from an experienced professional is necessary from the very beginning.


        Design Time 

        For renovation works that go beyond changes of coverings and installations, the Town Hall requires an architect’s technical project upon which the license will be based. The estimated time an architect needs to create this project will vary depending on the complexity of the renovation, for a design of a complete renovation of a house of 200-300m2, it could be around a month.


        Execution Time

        The final timeline of execution will always depend on the complexity of the work. As an example, for a complete renovation of a 200-300m2 property, it could take around 6-8 months.


        Before
        After


        3. Property Renovation Costs

        "Renovations often cost more than expected. In most cases buying a second-hand home means that essentials like structure, façades, and installations need a full overhaul. These are costs that are often forgotten as the focus tends to be on the more "beautifying" aesthetic changes you envision for your new home. Here your architect should thoroughly assess your property’s bare necessities and provide you with a detailed list of recommended works and associated costs. This way, you have a clear idea of how much of your budget is left for the more "superficial" changes that you envisioned." – Robin, Architect & Founder at RVdD Arquitectura


        Accurate Idea of Initial Costs  

        It’s so important to consider all the possible costs involved. Of course, the cost of renovating a house in Ibiza is harder to estimate than the cost of a new build, because until you start, you don’t always know what you’re up against.

        An accurate idea of the cost of the renovation can initially be estimated by professionals, however, often it can only be gained once the work has already started, and you can properly assess the structural integrity and foundations of the existing building.


        Ongoing & Extra Cost 

        Regardless of your budget, you should always allow for a margin for unforeseen items that will not become apparent until after the work has begun.

        When obtaining estimated costs, consider site preparation, foundation, professional fees, finishes, installations, landscaping, garden, pool, and taxes. 

        Always clarify whether it is a fixed price for a clearly defined task, or an estimate based on currently available information (which may increase dramatically as the actual scope of the project becomes clear). Before you take the plunge, keep in mind that aside from the work involved in renovating a home, there are many additional costs that you should factor in.


        4. Legal Information: Local Laws and Regulations for Renovations in Ibiza

        "Before embarking on your home renovation journey in Ibiza it is absolutely essential to familiarise yourself with the local urbanistic laws and regulations. Especially here in Ibiza, where even small works require prior declarations or building permits from the town hall. Consult with your architect, in order to be fully informed and aware of possible limitations that might affect your design ideas." – – Robin, Architect & Founder at RVdD Arquitectura


        Legal Information: Licenses & Permits

        If you are looking for a property to renovate in Ibiza, you must make sure that the local authority Town Hall (Ayuntamiento) has issued the relevant permits. 

        In some cases, your chosen architect will need to provide detailed plans for the building project. 

        Permits and licenses are required for the following projects:

        • For a simple renovation (coverings and installation replacement), you do not need a license and with a "Previous Communication" (Comunicación Previa) you can start works immediately.
        • For any other type of renovations that include changing the interior layout, structural modifications and façade modifications, an Urbanistic Licence will be required.
        • Since the COVID-19 pandemic, to try to facilitate the administrative procedures, if the renovation is on urban category land, in existing buildings that are legal, the architect can present a "Declaration of Responsibility" (Declaración Responsable) together with the technical project, and start the works immediately (similar to the "Previous Communication"). In this case, the architect assumes and justifies that the renovation complies with the regulations, and can therefore start immediately.

        In order to understand the possibilities and limitations of the renovation in question, you (or your chosen architect) must understand and analyse the scenario based on the urban laws and regulations that apply. Each of Ibiza’s five municipalities has its own rules, a "PGOU" or "Normas Subsidiarias". Then there are specific rules within each municipality with Partial Plans, Areas of Action and Detailed Studies that affect some specific areas, which are specific rules only for those areas. And above all, there is the "PTIE" which is a regional regulation of the Consell that regulates above all the rustic land and protects the landscape.

        Apart from that there are other state or regional regulations on agricultural land, coastal areas, etc. that also need to be taken into consideration.

        In terms of urbanistic laws and regulations it might be fair to say that Ibiza is one of the most complex regions in the whole of Spain. On order to analyse and understand the existing scenario you need to have an experienced professional at your side who understands all the intricate levels on which these laws and regulations operate. Therefore, we would like to reiterate how strongly we recommend working with a trusted, local architect. 


        Extra Tip from Robin:

        Ensure that both the architects and the contractors have their own insurance in place before they start work on your project. Not only for safety and to protect yourself from personal liability, but also because if you are financing the purchase and the renovation through your bank, only approved tradesmen in Spain are allowed to carry out building works (this ensures they have the correct insurance).

        Robin Local Ibiza Architect RVdD Arquitectura


        Prestige Recommends: Local Ibiza Architect RVdD Arquitectura

        We would like to give a very special thank you to Robin, founder of RVdD Arquitectura for taking the time and sharing his knowledge on this subject with us and our readers. Robin is of Franco-Belgian origin but was born and raised in Ibiza. He graduated from the Val de Seine School of Architecture in Paris and set up his studio "RVdD Arquitectura" on the island in 2011. He specialises in renovations, as well as new-builds, landscape design, consulting, and project management. Over the years he has worked on numerous renovation projects for both international second-home buyers, local residents, and investors. All images featured in this article are examples of some of his works.




        Are you looking to Buy and Renovate a Property in Ibiza?

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

        Thank you for staying updated with us at Prestige Properties. We hope to see you soon!



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

          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?

          Do you have any questions or need more info?
          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!

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