So, after a record year for the island in 2015, this year is looking at least as good in terms of tourism, insular economic data and the housing sector. Foreign and Spanish investors are showing strong interest in prime real estate and both transactions and average spend is expected to be up again in 2016.

1. IBIZA Prime Real Estate Market
1Q 2016 Report
Snapshots
www.housesinibiza.com

2. www.housesinibiza.com
IBIZA Prime Real Estate Market
1Q 2016 Report
Summary
So, after a record year for the island in 2015, this year is looking at least as good in terms of tourism,
insular economic data and the housing sector. Foreign and Spanish investors are showing strong interest
in prime real estate and both transactions and average spend is expected to be up again in 2016.
Christmas 2015 and the early part of the year have been very busy and the season appears to be
expanding quietly to include the winter months with an increase of 20% in visitors.
The change in government and the political landscape has meant, at least initially, a much stricter
approach to planning and housing legislation.
Building and refurbishing permissions have been cut back meaning the available legalised offer is
evermore scarce and consequently driving prices higher.
Land to develop has become even stricter and restricted and again those with planning permission have
increased considerably in value.
All in all, we expect to see another strong summer season and continued interest in the prime real estate
market . We expect an increase in transactions and an increase in prices again in 2016, following the
trend established in the past 3 years.
The vacation rental market again is expected to be strong this year and is now consolidating attractive
rental yields for buy to let investors, net yields can be around the 5%.
Prices range enormously but for prime real estate expect to pay over € 4 mm for a 480 m2 finished
product in the countryside with a large plot (30,000 m2 plus) or a similar sized house with a sea view
close to the sea albeit on smaller plots (5,000 m2 minus)
Fincas or houses to be rebuilt or refurbished depend largely on licenses but again expect to pay
between € 2 mm and € 2,5 mm. Building cost for prime are some € 2500/m2
Good sized plots with an active license to build can command prices of over € 2mm
A frontline apartment with some 150m2 with sea views on the golden mile in Ibiza town costs upwards
of €1.5 mm
As it stands, it is pretty much a sellers market!
Clive Heathcote-Houses in Ibiza

3. • 5% increase in transactions in
2015
• More than a 20% increase in
the prime market transactions
• British,Germans, Dutch and
Spaniards lead the market and
strong growth from the Swiss
and Americans
• Average spend jumps 15%
• Over 75% are cash buyers.
0
300
600
900
1200
1500
2010 2011 2012 2013 2014 2015
1.4021.333
841
1.052933
1.177
Housing Transactions

4. 0
48
96
144
192
240
2008 2009 2010 2011 2012 2013 2014
685846
817687
231
Residential Housing Starts
Residential housing starts
www.housesinibiza.com
New builds have fallen sharply in
the past decade!
The slow down in developments
and new building on the back of
the gloomy world economy and
stagnant credit markets have
sharply slowed the rhythm in
recent years
Stricter planning legislation has
also reduced some of the
volumes seen in the past.

5. 0
120
240
360
480
600
2010 2011 2012 2013 2014 2015E
414
260
200
251
180
518
Residentail building licenses
Residential building licenses
Big jump in building licenses!
This is mainly due to refurbishing properties
and increasing existing home volumes

6. www.housesinibiza.com
The estimated housing stock
on the island of some 70,000
units.
Listed sales are in the region of
2000 units and for prime
property we estimate there
are less than 400 units
available for sale.
Prime real estate transactions
have increased some 20% in
2015
Houses for Sale Units Average price € /m2 %
Listed Internet Sales 1749 4,081
Houses 763 4,701 43.62%
Over € 1,5 mm 315 6,258 18.01%
Over € 2 mm 193 7,043 11.03%
Over € 3 mm 84 8,675 4.80%
Top Agency listings Units > € 3 mm
w 191 18 9.42%
x 168 21 12.50%
y 134 49 36.57%
z 86 29 33.72%
Housing stock for sale

7. 1Q 2016 Passenger arrivals
The winter season is growing!
Sharp increase in UK ,German and Benelux
passengers (+50%).
505 on private jets.
20% more flights
Airline
Passengers 2016 2015 Difference
YTD 450,080 383,887 17.24%
January 126,758 106,430 19.10%
February 128,862 112,930 14.11%
March 194,460 164,527 18.19%
Source Aena

8. 0
800000
1600000
2400000
3200000
4000000
2012 2013 2014 2015
3.225.4903.091.901
2.851.2982.761.738
Passenger Arrivals
Yet another record year in 2015!
% INCREASE IN BENELUX
GERMAN & FRENCH ITALIAN
SPANISH & UK GROW
Passenger arrivals 2012-15
www.housesinibiza.com

9. 280000
560000
840000
1120000
1400000
UK GERMANY ITALY FRANCE NETHERLANDS SPAIN
1.298.288
164.140
95.513
348.387
289.079
808.605
1.165.443
142.318
92.050
348.694
330.620
798.223
1.092.761
118.630
86.564
320.957
293.921
783.466
2013 2014 2015
Passenger arrivals/nationality
www.housesinibiza.com
Good growth in the main
markets (UK & Spain)
Consolidation in the German,
French and Italian market
Sharp increase in the Benelux
markets

10. 0
600000
1200000
1800000
2400000
3000000
2010 2011 2012 2013 2014 2015E
2.800.0002.733.558
2.447.5752.334.6922.378.967
1.780.685
Tourists
Visitors 2010- 2015
www.housesinibiza.com
50% increase in 6 years
Forecast for 2016 is flat to a
10% increase
Sharp increases in visitors from
the Benelux, Switzerland and
the USA

11. 7000000
7400000
7800000
8200000
8600000
9000000
2010 2011 2012 2013 2014 2015
8.311.736
8.099.509
8.515.924
8.163.576
8.474.229
7.303.262
Total nights/ hotels
Total Visitor Stays/Hotel
Hotels stays are consolidating above the 8mm
mark.
The house rental market has grown
exponentially in the past 5 years and explains
the growth in tourist arrivals yet the
consolidation of hotel stays.
The rental market has grown over 50% in the
past 5 years and absorbed a large part of the
growth

12. 0
500000
1000000
1500000
2000000
2500000
2010 2011 2012 2013 2014 2015E
2.500.0002.438.9622.359.239
2.214.5632.113.913
1.780.118
Expenditure € mm
Visitors Expenditure 2010- 2015
Increase in receipts reflects the increase in
visitors
Note the average spend has been growing
steadily in the last years as premium offer
has developed aggressively in the past
decade.

13. 0
320
640
960
1280
1600
2010 2011 2012 2013 2014 2015 3Q
195
215
140
677244
245
263
230
324
358
244
399
570
599
470
291
262
1.463
1.3891.388
1.351
1.390
1.299
Hotel Rental Home Owners Other
Visitors Expenditure 2010- 2015
Breakdown € mm
Hotel expenditure jumps in 2015 after
stagnating for the past few years
Home rentals are consolidating, after more
than doubling in recent years, but note
Other grow sharply, it could well be that it
is actually house rentals being accounted for
in Other.

14. 120000
126000
132000
138000
144000
150000
2008 2009 2010 2011 2012 2013 2014 2015
141.000140.000140.000
137.000
134.000
132.000
129.000
125.000
Population
Resident population
www.housesinibiza.com
Population has been
growing sharply in the past
decade and is currently
consolidating current levels.
We are seeing growth in
foreigners coming to Ibiza to
live as an alternative high
quality lifestyle option and
expect this segment to grow
strongly in coming years.

15. 5.668
23.359
25.362
36.189
49.693
Eivissa Santa Eularia San Josep San Antoni San Joan
Resident population
www.housesinibiza.com
Population is distributed with the South
of the island more densely populated .
The North is significantly sparser
compared to the south .
There is a growing investor interest in
the North which more geared to
preserving the spiritual side of the island
and leaving the grit, bustle and noise to
the South.

16. 4.090
4.460
2.400
3.900
3.500
4.300
102.000
Spain Italy UK Germany France Rumania Morrocco
Resident population
www.housesinibiza.com
30% of the population are foreigners.
Within the EU
Italian,,German,French,Rumanian and UK
residents are the largest .
Non EU is lead by Moroccans,
Ecuadorians and Argentinians.

17. 0
130
260
390
520
650
2010 2011 2012 2013 2014
548545551551550
Hotels
Total Hotels/Establishments
Hotels have remained stable in recent years but
the sector have seen much refurbishing, and
several visible acquisitions by foreign investors.
There is a short supply of luxury / boutique
hotels.
7 establishments (1.2%) and 1827 beds (2.3%)

18. 0
18
36
54
72
90
2008 2009 2010 2011 2012 2013 2014 2015
74,273,675,673,674,1
68,9
61,4
67,3
Occupancy %
Hotel Occupancy %
www.housesinibiza.com
Hotel occupancy levels are
consolidating above the 70% level.
Out of season occupancy has grown
from 33% to 44%
The percentage of hotels remaining
open all year has increased slowly in
recent years as the season is gently
expanding.

19. 0
40
80
120
160
200
2010 2011 2012 2013 2014 2015
145145138136125133
Average Daily Spend €
Hotel Guests
Average Daily Spend
www.housesinibiza.com
Average daily expenditure of hotel
guests is stable in the past couple of
years.
ADR and Revpar have jumped in
2015
0
40
80
120
160
200
2012 2013 2014 2015
88
686460
117
908280
ADR € RevPar €

20. 0
18000
36000
54000
72000
90000
2010 2011 2012 2013 2014
79.16178.86779.56579.59478.925
Beds
Total Available Beds
www.housesinibiza.com
Available beds have held
steady in past years.
A huge increase in the
vacation rental market has
absorbed much of the growth.
We are seeing active M&A in
the Hotel sector and large
refurbishing projects ongoing,
especially in the 4**** &
5***** segments.