Ibiza Real Estate Market report Q3-Q4 2011

1. IBIZa Real Estate Market Report
Q3 & Q4, 2011
“ The higher end of the
Ibiza property market
year-round comfortable climate, leisure activities,
nightlife and the Balearic Island’s excellent record
of safety and security.
While overall property sales have slowed since
their peak in 2006 / 2007, there is still strong de-
mand for high quality properties at the exclusive
remained stable through- end of the market. Global internet searches for
out 2011 and there These factors contributed to the Q3 and Q4 2011 luxury Ibiza villas peaked during the summer
appears to be ever upward trend in demand for luxury properties months and maintained a healthy rate of interest
as investors sought to take advantage of the fact throughout the rest of the year. Search queries
increasing interest in that owners of quality properties remained open for more general Ibiza property were much lower.
luxury properties in to a degree of negotiation. Globally, the majority of foreign-based searches
prime locations across for Ibiza villas were made from the Netherlands,
’’
In the market as a whole, individual months United Kingdom and Italy.
the island presented a more mixed picture with the number
of sales highest in January and May. The majority
The Ibiza Real Estate Market: of properties sold were in urban areas such as
Summary Eivissa, the Ibiza capital. Making up only a small
Ibiza real estate was one of the strongest perform- proportion of overall transactions, rural property
ing Spanish property markets of 2011. sales remained fairly consistent at about 12%
of the total amount of property transactions
According to the statistics, the dip in average throughout the year.
prices evident up to the middle of 2011 began to
reverse in the second half of 2011, with signs of
an increase in property value in the final quarter
of the year. Ibiza property ended Q4 at an aver-
age price of €3,026 per m2.
Figure 2: Searches for “Ibiza villa”
Through 2011 the best luxury Ibiza villas were compared with “Ibiza property”
keenly sought after by foreign buyers, particular- Source: Google Trends
ly from the Netherlands, United Kingdom, France,
Italy and Germany.
Ibiza Property Asking Prices
Growing tourism arrivals throughout the year – Figure 1: Property transfers (merchanting) According to Spanish internet property portal,
surpassing 2010 levels - brought a new wave of – Balearic Islands 2011 Kyero, asking prices in Ibiza dropped from an av-
interest from potential buyers drawn to Ibiza’s Source: National Institute of Statistics (ine.es) erage of €755,000 per property to €687,000. This

2. shows a slight downward trend in 2011 for Ibiza Since Q1 2011, the sales prices of Ibiza properties Foreign Investment Interest
compared with a more stable – yet much lower – have been gradually increasing, returning to the Across Spain, foreign property investment in the
average for asking prices across all of Spain. values recorded in the middle of 2010. This sug- third quarter 2011 increased 24.7% over Q3 2010
gests there was an upsurge in property trading in levels. Ibiza and the Balearic Islands region were
late 2010 and the start of 2011, levelling out the one of the top areas for foreign property invest-
market as recognition grew amongst investors ment with the Spanish Ministry of Public Transac-
that Ibiza properties represent a great investment. tions recording 516 property purchases by foreign
The influx of tourism (discussed below) brought investors across the Balearic Islands in Q3 2011.
Ibiza to the attention of more lifestyle investors
seeking quality properties that are well-located
with access to leisure activities, beautiful coast-
lines and good international travel routes.
“We expect the demand for luxury Ibiza properties
to continue to grow in 2012, as more people rea-
Figure 3: Average asking prices lise the investment potential of the island and take
Ibiza vs Spain 2011
Source: Kyero.com
advantage of the great properties available across
the island,” said, Alix Bond of Lucas Fox Ibiza.
At the more exclusive end of the market, Kyero Ibiza Rental Market Figure 6: Foreign interest in Lucas Fox
reported that by the end of the fourth quarter Throughout 2011, Ibiza saw stronger demand for Ibiza properties Q3 & Q4 2011
Source: Lucas Fox website analytics
2011, 4 bedroom properties in Ibiza had an aver- short-term rental properties than was the case
age asking price of €1,150,000 (30.4% higher than in 2010. The season is gradually getting longer
the Balearic Islands average) and 5 bedroom prop- – some villa owners reported high occupancy Lucas Fox has seen sustained interest in Ibiza
erties had an average asking price of €1,662,000 rates from April through to October. Luxury villas properties from key market segments across the
(20% higher than for the Balearic region and 180% in the Cala Jondal and Es Cubells areas remained globe. For Q3 and Q4, 2011, the majority of for-
higher than the Spanish average for properties of the most popular amongst international visitors. eign interest in Ibiza properties came from the UK,
the same size). The best villas rent out for in excess of €10.000 per France, Switzerland the Netherlands, the United
week in the high season. States and Germany.
Ibiza Property Average
Sales Prices A strong indicator of short-term rental demand,
Average property sales prices for Ibiza began Ibiza airport arrivals throughout 2011 were 12% Lucas Fox Analysis and
climbing slightly throughout Q3 and Q4 2011. higher than visitor arrivals in 2010 (to the end Predictions for 2012
While the Spanish average property prices con- of November 2011), with the usual tourist surge “The higher end of the Ibiza property market
tinued a slight downward trend, Ibiza property during the summer months. However, even in remained stable throughout 2011 and there ap-
sales monitored by Spanish portal sites Fotocasa November (traditionally one of the year’s quietest pears to be ever increasing interest in high-end
and Idealista both showed a gradual upward months for tourism), arrivals were some 4% higher properties in prime locations across the island.”
trend, with Idealista’s end of year data showing an than in 2010, confirming the stronger interest in Alexander Vaughan, Director of Lucas Fox com-
improvement in sales prices, closing the year at Ibiza amongst international travellers throughout mented. “As predicted in our market review dated
€3,026 per m2. the year. May 2011 the large proportion of international
property owners and buyers at the higher end of
the Ibiza market has meant that the island has not
been affected by the economic slowdown that has
impacted on some parts of Spain. The increasing
number of international visitors and the growing
recognition that investing in Ibiza property is a
good long term investment looks set to ensure
that the luxury Ibiza property market will continue
to thrive. The change of local Government has
had little impact so far on planning laws which
should also mean that land with building licences
continues to attract strong interest and offer good
Figure 4: Average Ibiza property sales Figure 5: Ibiza airport investment opportunities”.
prices 2011 arrivals 2011
Source: Idealista.com, Fotocasa.es Source: AENA

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