WHY INVEST IN IBIZA?
The luxury property market in Ibiza has become the destination of choice for many international buyers and investors. More than 27% of our buyers buy a property in Ibiza mainly as an investment. Angel Ibiza Restyling is the link to success.
The Balearic Islands are not only one of the most popular holiday destinations in Europe, but they are also one of the most important real estate markets in Spain, especially the luxury home market in Ibiza, which continues to grow steadily. Demand for on the international second home and investment market continues to flourish, with increasing interest across the island, especially in the San José region.
House sales, overall prices and price per square metre in Ibiza are generally higher than in other Balearic Islands or mainland Spain. According to statistics from Idealista, the average sales price per square metre in Spain is €1.929/m2, while in the Balearic Islands it is around €3.690/m2 and in Ibiza €4.879/m2. Prices have risen slightly, quality supply has dried up and demand has shot up. International wealthy families continue to settle on the island, diversity is increasing and infrastructure is gradually improving.
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Long-term rental rates: an indicator for potential buyers
Long-term rentals of larger properties have become increasingly popular, especially with families. People are realizing they can work efficiently from home, focus on building their business and watch their families grow up in an idyllic location. Ibiza has a real and attainable appeal, which has blossomed since the pandemic. Despite significant demand, the market currently lacks long-term rental options, which in turn offers interesting investment opportunities for customers looking for properties to rent in Ibiza.
In recent years, the number of property applications has increased continuously, with an increase of 87% in the last 2 years. It is clear that demand is increasing, but fewer homes are being brought onto the market. In 2022, there was a decrease of approximately 50% in (published) offers. As a result of Ibiza's increasingly strict building regulations, the number of newly built homes is also decreasing year after year. A total of 182 new homes were offered for sale in this portfolio in 2022. The lack of supply is one of the main reasons why the Ibiza property market remains stable and properties consistently increase in value.
High demand versus low supply: the trend continues
2024 forecast forecast
According to the House Price Index (IPV) published by the National Statistical Institute (INE), the Balearic Islands remained the Spanish region with the highest house prices in the third quarter of 2022. Prices here increased by 8.3% compared to the same quarter last year year. The luxury property market in Ibiza is expected to rise steadily and consistently. Overall, this points to Ibiza's luxury market, which is likely to remain internationally attractive well into 2024. As we leave 2023 behind and enter 2024, we expect a small decline in sales. This is based on a global sentiment of general stagnation, but is also particularly true in Ibiza as we increasingly see a shortage of sellers in the market. However, the island is growing in popularity as a trendy and desirable place to live and is generally experiencing continued growth. Amid Ibiza's boom in luxury and extravagance, Ibiza's biggest challenge will be to maintain its local charm and authenticity.