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IBIZA REAL ESTATE MARKET REPORT 2nd quarter 2019 © – HOUSES IN IBIZA 2019
Dear Customers, Clients and Friends,
With Ibiza full on into the season and currently suffering a heatwave, it is a good time to check in with the numbers for indications on the trends for the Ibiza real estate market and Ibiza property prices.
Overall the season has started well,tourist numbers are coming in somewhat softer which I think is great news, there is a limit to the sustainable amount of people the island can properly cater for during the season.We must find a balance between the well being of the island and the well being of our visitors both which make the Ibiza so special.
Hotel REVPAR prices are adjusting a touch lower, occupancy is stable and stays seem to be growing albeit marginally.
Ibiza real estate property prices continue to consolidate as they have done for the past quarters.There is still some price fluff but I don’t consider them realistic valuations and ignore them in my assessments.
Sales transactions fall again in the first quarter, following the trend established in 2018 and offered listed units which have increased substantially in the past year, now seems to be consolidating at these highs.
The local, municipal and autonomous government elections in May have seen some changes especially at the local government levels (Consell Insular) where the center right party PP has obtained a majority and typically tend to have more expansive attitudes to building and planning policies.
Still early, we need to see what changes they want to implement and how in order to properly understand any impact.
The case for buying however remains the same. Scarce quality supply, robust demand at real pricing levels and a restrictive building and planning environment.
A growing resident market, especially in the foreign, higher income bracket and an increasingly wider range of holiday experiences with emphasis on well being, sports and families will keep the ball rolling.
Do not expect significant real price falls and as transactions have started to dry up in the past year and seem to continue in these quarters, it is likely that real prices will commence the next upward price cycle as of the end of next year.
Not a bad time to be considering!
Hope to see you all soon on the island!
Clive Heathcote – Houses in Ibiza ©