Ibiza Real Estate market Report Q3-Q4 2013
 

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Ibiza Real Estate market Report Q3-Q4 2013

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At Lucas Fox, we produce real estate market reports outlining how the Spanish market is performing in the areas we operate.

At Lucas Fox, we produce real estate market reports outlining how the Spanish market is performing in the areas we operate.

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Ibiza Real Estate market Report Q3-Q4 2013 Document Transcript

  • 1. IBIZA REAL ESTATE MARKET Q3 & Q4 2013 Amanda Martí Director Lucas Fox Ibiza www.lucasfox.comIBIZA REAL ESTATE MARKET Q3 & Q4 2013 IBIZA MARKET REPORT • Lucas Fox enjoyed its most successful year to date in 2013, ending the year with several major high value sales, ensuring the company’s healthiest sales revenue since it was founded 9 years ago and indicating another busy year ahead. • The prime Ibiza residential property market is still being driven by international clients who are attracted by lower sales prices. • This interest from international buyers has also been driven by the new Residency Law which enables non-EU buyers to acquire residency via property investments over €500,000. • In 2013, Spain became the third most popular tourist destination in the world, with over 60 million visitors visiting the country over the course of the year.The Balearic Islands attracted 18.3% of the total, the second highest tourist numbers after Catalonia • Across 2013, average sales prices for luxury properties on Ibiza averaged €1.16 million SUMMARY Property prices continue to be heavily discounted across the market, with average prices 30% lower than during the peak 2007 trading period. The South West and San Jose areas of Ibiza continue to be the most desirable amongst international buyers. In 2013, Ibiza was one of the strongest property markets in Spain, with a healthy transaction pace compared with the rest of Spain, and a levelling off of property prices in the second half of 2013. With the introduction of the Golden Visa Spanish residency permit law, Ibiza is now seeing increased interest from new markets, particularly amongst Asian and Chinese buyers. While the majority of buyers are from the UK, 2013 saw an increasing number of buyers from Israel and the US, as well as maintaining the level of purchasing amongst European buyers particularly Dutch. The greatest growth markets for enquiries and property viewings came from the Asia/Chinese market. The majority of buyers are seeking a holiday home or are balancing use of their property for rental investment and personal use over the extended summer period. Tourism to Ibiza continues to grow each year, with 3.1% growth in passenger arrivals in 2013 compared to 2012 figures. Sales of Balearic properties (which include Ibiza) rose slightly across the summer months, with a more The amazing yields being generated from summertime rental rates, the magnificent weather, and the safety and accessibility of the island are building its reputation for long-term investment value amongst foreign buyers. We have also seen a growing number of family buyers attracted to the North of the island and the surrounding villages
  • 2. Buyer motivations for Ibiza prime market properties, 2013 Source: Lucas Fox sales data Passenger arrivals to Ibiza airport (000s), 2011 - 2013 Source: Aena.es ABOUT THE LUCAS FOX MARKET REPORTS You can keep receiving up-to-date market reports from the Lucas Fox International Properties team. Subscribe to future updates at our website or bookmark our blog for the latest news on the Ibiza real estate market. Maxim Rettich Partner Amanda Martí Director Lucas Fox Ibiza For more information contact us: E info@lucasfox.com / T (+34) 933 562 989 www.lucasfox.com 1200 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 900 600 300 0 2011 2012 2013 pronounced trend in sales trading than was observable for the Spanish market overall. In Q3 and Q4 2013, all of the Balearic Islands (which includes Ibiza) averaged 614 property sales per month. In line with the lifestyle value of Ibiza, at least half of all prime market buyers were looking to use the property themselves as a second home or holiday property. The majority of prime market property buyers in Ibiza came from the UK and European countries (predominantly Germany, Belgium, the Netherlands and France), with the rest of the buyers split equally between Russia, the Middle East and the US. We believe Asian buyers will start to influence these figures in 2014. Ibiza has a robust and continually growing high-end tourist economy, with many visitors beginning a lifelong relationship with the island, that sees them return regularly over many years. As a result, not only does strong tourism growth continue (with Ibiza airport again topping the 5 million passenger mark in 2013), but so does the purchasing power of these tourists who are increasingly becoming investors in the island. ANALYSIS AND FORECAST “We expect 2014 to build on the strengthening property demand we saw in the second half of 2013”, says Amanda Martí Director of Lucas Fox Ibiza. “Prices are stabilizing and with the introduction of the new residency permits, there is increased competition for the best properties on the island. The amazing yields being generated from summertime rental rates, the magnificent weather, and the safety and accessibility of the island are building its reputation for long-term investment value amongst foreign buyers. We have also seen a growing number of family buyers attracted to the North of the island and the surrounding villages ( such as Santa Gertrudis, San Juan, and Carles) and we expect this trend to continue in 2014. New-build designer villas, first-line mansions and seafront properties, and classic country houses (or fincas) will continue to be the most sought-after properties on the island in 2014.” Property sales transactions, Peak 2007 compared with Q3 2012 – Q 4 2013 Source: Ine.es