Ibiza isn’t a new player in the luxury real estate sector, but with the post-pandemic market shift, it shines especially bright. Our latest survey revealed 77% of JamesEdition respondents are considering purchasing a home in The Balearics in the upcoming six months.
At the same time, user behavior data shows Ibiza remains the most popular among the three main Balearic islands, achieving 22% more listing views than Mallorca (even though it has half the number of active listings).
One of Ibiza’s top secrets is a magnetic combination of appealing, resort-style real estate with competitive prices – two times lower than Mallorca, with a median price of 5,649 euros per square meter. But are there other trends behind the island’s popularity? We talked to a handful of top property agents in Ibiza, gathering insights on the current market state, and where they see the trend heading so you can get ahead of next season.
Victor Van Den Driessche, Prestige Properties Ibiza: “We’re experiencing a small boom in the luxury sector”
“We’re currently experiencing a small boom in the luxury sector of Ibiza’s real estate market, brought on by Covid-19. The pandemic has motivated buyers with means to invest in properties located in safe and more natural surroundings, away from overcrowded so-called ‘hotspots’.
“In general, that speaks to Ibiza’s upscale market, giving confidence to international buyers, and making us believe the trend will continue into the foreseeable future – 2021 for sure. What will happen over the coming years? Only a crystal ball can tell, but there are no visible signs of a decline at this point.”
Rene Heinz, Gould Heinz & Lang: “Buyers paying above the asking price to secure special properties”
“The market in Ibiza is strong and competitive at the moment. There’s a lot of demand, with relatively small supply. Prices for exceptional properties remain high, and we’re seeing buyers paying above the asking price to secure special properties. For example, we recently sold a piece of urban land without a building license for 20% above the asking price, with five parties bidding.
“Since building in rural areas is extremely limited because of the restrictive planning laws, there’s almost no land with building licenses for sale at the moment. That drives prices for existing properties upwards – especially those with above-average square meters and big pools. We don’t see an end to that trend.’’
Rupert Lister, White Walls Ibiza: “A transition from a holiday home island to a permanent home island”
“Here in Ibiza we’re witnessing a fascinating property transition, from a predominantly ‘second home / holiday home island’ to a ‘permanent home island’. Buyers are looking for residency – confirmed by international school Morna receiving record numbers of new student registrations.
“Consequently, property value has held firm during these strange times; if anything increased for quality fully legal properties in prime locations. An interesting twist is buyer requirement changes. For example, sea views are no longer a top priority, rather geographically central villas near schools.”
Claudia Zezukiewiets, Let Us Ibiza: “Many people needed that little push called lockdown”
“For years, we’ve seen strong demand from countries like the United Kingdom, the Netherlands, France, Germany, Italy, and Belgium, further fuelled by a mix of economic developments. For example, wealth is generally increasing in Europe, meaning more people can afford a second home.
Also, there’s increased wealth from Eastern European countries. Moreover, direct flights from more and more countries make Ibiza a quick second home getaway for people looking to relax and unwind from their busy city lives. On top of that, Ibiza is very small.
The popularity and current demand are further stimulated by low interest rates, making it more interesting for people to invest in property instead of keeping the funds in savings accounts.
On top of that, many people needed that little push called lockdown. The last uptick in demand was definitely caused by people deciding not to wait for the things in life that make them happy, like spending precious time with family and friends.
Money in the bank won’t bring you happiness (nor a good return), so why wouldn’t you invest in a place that makes you a good return in the longer term, and brings valuable moments in the short term?”