IBIZA REAL ESTATE MARKET
REPORT 3Q 2018 © – HOUSES IN IBIZA September 2018
Dear Customers, Clients and Friends,
As the season winds down and Summer slips into a balmy Autumn, it is a good time to reflect on the season and what may be happening in terms of the Real Estate Market in Ibiza.
I think we are at a very interesting point for the island of Ibiza. This ever changing, magical place is shifting yet again. And I am very excited about what is happening!
First of all, we have had less pressure on the island in peak season. The season in itself is consolidating into a longer, more even distribution of visitors. And importantly, we are finally seeing some of the the excesses of the previous seasons being corrected, eliminated or just readjusted through pricing.
A couple more seasons of “cleansing” and claiming back the more authentic ¨spirit ¨of the island will provide a perfect springboard to the next phase for Ibiza.
Consolidate our market, correct the excesses and reset the island. All good news for the Ibiza we all love going forward.
What does this mean in terms of the Ibiza Real Estate Market and pricing?
Let’s look at the figures (pressure on prices)
-More properties than ever on offer almost double the offer there was 3 years ago.
-Prices, especially on the higher price bracket of the market, are starting to come down.
-Ibiza Home sales after a very strong 2017, look softer and will most likely be significantly lower.
-Rental prices and Hotel ADR have all been readjusted downwards for the most part. More realistic pricing!
But (limited supply of quality product, demand is more selective but growing)
-Fully legalised quality properties are scarce. Planning permissions remains lengthy, strict and tight. Demand is robust at the right price for prime properties.
-The flow of people coming to live in Ibiza as a lifestyle option continues to grow.
-Local Elections in May 2019 means that in, probably not much will change with regulation during this electoral period, keeping the market tight.
I think that generally prices will continue to consolidate, with prices softening over the coming 4 to 5 quarters.
Not a bad time to be considering!
Hope to see you all soon on the island!
Clive Heathcote – Houses in Ibiza ©