IBIZA REAL ESTATE MARKET REPORT FULL YEAR 2017. – HOUSES IN IBIZA 10 January 2018
Dear Customers, Clients and Friends,
Another year has gone by and Ibiza has again seen record numbers in terms of visitors and total spend.
The good news is a consolidation of the extended season where we can safely say that June and September
are an integral part of what is now a 4 month season, while May and October continue to grow we would foresee expanding to a 5 month season in coming years.
In the rental market we are seeing more short term stays (less than a week) and more long term stays (more than 3 weeks) and less of the more traditional one to two week stays in the house rental market.
Yields have come down somewhat as there has been a huge increase in offer. We expect harsher legislation will reduce the size on offer in coming years and rental yields in Ibiza will start to move up as the properties on offer contract over the coming years.
Occupancy in hotels maintains its high levels and the ADR has increased somewhat after last years adjustment.
The Nobu, Sir Joan and the Montesol, all 5 star, made there successful debuts last year.
Listed offered prices for Ibiza properties have risen during the year by some 15% and retains its position as the most expensive per m2 in Spain. The amount of houses and apartments for sale in Ibiza has increased by 30% to over 2000 listings.
Home sales in Ibiza remain at very brisk with levels, up 20% as of the 3Q17 versus 2016. We would expect to clearly break through the 2000 transactions for 2017. We feel transactions will probably fall some what during 2018.
The drivers for the property market still remain intact, very low supply of quality product, a very strict planning environment and an relatively inefficient market in the face of solid demand, the consolidation of Ibiza as a premium destination and a growing population, as more and more people consider the island as an lifestyle option, all will keep supporting prices.
But we do sense that the market is ready to consolidate these price levels for this coming year as the market needs to digest increases of up to 50% in the past 4 years.
We are expecting a sideward to small correction in prices for the the next 12-18 months.
Not a bad time to be considering!
All the very best for the New Year!
Houses in Ibiza