How would you sum up the property market in Ibiza during 2016?
We have seen an increase in German, French and Dutch buyers but the EU referendum has had a significant impact on the buying habits of British buyers who have traditionally made up the highest proportion of foreign investors on the island. Also the changes to the laws to building on rustic plots (from January 2017 it is no longer possible to construct homes on rustic plots, only urban) and the tighter rental license legislation has meant that the buying and rental process is more complicated and has affected a couple of our deals this year.
How does the market compare to 2015?
Clients’ budgets went up in 2016. During 2015 a lot of our clients had budgets of up to €1 million and we are now seeing budgets of up to €2 million and sometimes more. The French (who are fairly new to the market), Dutch and Germans have become the most prolific buyers on Ibiza, taking over from British clients. They are generally looking for second homes, holiday homes and villas to rent out during the summer. They are normally cash buyers.
What have been this year’s notable trends?
We are seeing increasing numbers of people who want to be able to earn rental income from their purchase. Around 70% of our clients intend to rent the property out in the summer at least for a couple of weeks. Our German and French client base has increased significantly (the majority of our deals in 2016 have been with German buyers). Buyers tend to be company executives and entrepreneurs but we have also seen quite a few football players looking to buy as well as retirees, who love the peace and quiet of Ibiza and the good weather. The British are more likely to want to relocate because of the island’s family-friendly environment, the weather and tranquility. Ibiza also has also a British school which adds to the attraction. Normally British buyers tend to be able to work remotely such as creatives.
What types of properties are proving most in demand?
The most popular properties are homes in the countryside priced between €1 million and €2 million. Normally new builds, modern homes or villas to renovate. Some are still after the typical Ibicenco-style homes. The area of San José is always in demand but this year we’ve registered more enquiries about properties for sale in the north of Ibiza because of the area’s tranquility and stunning countryside and also because it is vibrant year-round (Santa.Eulalia, hippy markets in San Carlos, restaurants etc).
What do you expect will be the key trends for 2017 in your region?
Because of the uncertainty over building licences for plots in the countryside, we think that people will show more interest for urban land and re-sale homes during 2017. We expect to see more German and Dutch buyers and we also expect to get more interest from French clients as the trend during 2016 has suggested. We also hope that the Brits will return after the initial shock of the Brexit vote.