So, after a record year for the island in 2015, this year is looking at least as good in terms of tourism, insular economic data and the housing sector. Foreign and Spanish investors are showing strong interest in prime real estate and both transactions and average spend is expected to be up again in 2016.
Christmas 2015 and the early part of the year have been very busy and the season appears to be expanding quietly to include the winter months with an increase of 20% in visitors.
The change in government and the political landscape has meant, at least initially, a much stricter approach to planning and housing legislation.
Building and refurbishing permissions have been cut back meaning the available legalised offer is evermore scarce and consequently driving prices higher.
Land to develop has become even stricter and restricted and again those with planning permission have increased considerably in value.
All in all, we expect to see another strong summer season and continued interest in the prime real estate market . We expect an increase in transactions and an increase in prices again in 2016, following the trend established in the past 3 years.
The vacation rental market again is expected to be strong this year and is now consolidating attractive rental yields for buy to let investors, net yields can be around the 5%.
Prices range enormously but for prime real estate expect to pay over € 4 mm for a 480 m2 finished product in the countryside with a large plot (30,000 m2 plus) or a similar sized house with a sea view close to the sea albeit on smaller plots (5,000 m2 minus)
Fincas or houses to be rebuilt or refurbished depend largely on licenses but again expect to pay between € 2 mm and € 2,5 mm. Building cost for prime are some € 2500/m2
Good sized plots with an active license to build can command prices of over € 2mm
A frontline apartment with some 150m2 with sea views on the golden mile in Ibiza town costs upwards of €1.5 mm
As it stands, it is pretty much a sellers market!
by Clive Heathcote/Houses in Ibiza
May 2016
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