Ibiza Real Estate Market Report 3Q 2017

 

 

15 October 2017

Dear Customers, Clients and Friends,

As we are enjoying the wonderful balmy weather of our extended summer season here in Ibiza, it seems like a good time to assess our 2018 season.

Again this year we will probably close with another record in visitors and the good news is that the mid and low season has seen record levels of visitors while July and August has seen a slight fall.

The real estate market continues to be buoyant with healthy demand and property prices in Ibiza are continuing to rise.

Transactions are swift and maintaining last years levels, again mostly foreign buying although national buyers are beginning to surface.

Average real estate prices continue to rise sharply and now are some 50% higher than a few years ago.

Housing stock on offer has increased somewhat in general, and prime real estate on offer has grown in recent months and prices have slipped a little. There appears to be more rotation taking place in the mid market.

We feel that prices in Prime Real Estate prices should consolidate at these levels for a period.

We do not expect prices to fall much , just to to take a breather before continuing its ascent, albeit at a more moderate pace.

Building permits and refurbishing permissions are being cut back, meaning the available legalised prime offer is, evermore scarce.

Land to develop also continues to be restrictive, prices here should also start to consolidate though expectations that eventually restrictions will be become somewhat more lenient in the future maintains interest high.

Demand still far exceeds supply, and probably will do so for a while, but real estate prices in Ibiza do need to consolidate at current levels.

So, not a bad time to be buying!

Clive Heathcote
Houses in Ibiza

*Please note the figures we use can vary over time, as sources revise numbers, and sometimes are guesstimates, but the trends are there.
Our sources are IBESTAT, Ministerio de Fomento, INE, Federacion Hostelera de Ibiza y Formentera, Exceltur and Idealista.

 

 

 

 

 

 

 

Passengers have been steadily increasing in recent years.

There has been an increase of 31 % since 2011.

Ibiza covers more than 60 destinations in season.

The island has increased destinations off season, currently offering off season direct flights to London,Paris, Milan, Geneva, Amsterdam and Eindhoven.

Includes inbound and outbound.

 

 

 

 

The island of Ibiza has experienced a sharp increase in tourists growing by over 70% between 2010 and 2016
This represents some 9% increase vs 2015.

The island is probably close to full capacity in peak season and seems to be consolidating these levels.
Low and Mid season visitors has grown significantly and the latest data for September & October shows records.

A large increase in family oriented visitors in recent years is significantly changing the mix and the island is becoming focused on also offering adequate products for this market.