Engel & Völkers: House Prices Soar In Ibiza
21 July 2017 – Eje Prime
The real estate market in Ibiza is continuing to rise. Demand for high-end housing in Ibiza continues to significantly exceed the available supply, which has led to an increase in the prices registered on the island over the last year, according to a study prepared by the German real estate consultancy firm Engel & Völkers.
In its Ibiza Markets Report, the company explains that over the last year, it has sold homes to clients of 17 nationalities. Although most buyers on the island came from Germany, for the first time in almost ten years, Spaniards were the second largest group of house buyers.
The nationality of the other main house buyers included people from the United Kingdom, France, Switzerland, Italy and the Benelux countries. “Ibiza is still one of the favourite destinations for the international jet set and retains its leadership position in the Balearic Islands as the island with the most private flights”, say sources at the consultancy firm.
One of the most sought-after areas on the Balearic Island is the city of Ibiza and its surrounding areas. The redevelopment of the old town will be completed this year and so new luxury hotels will soon enhance the exclusivity of that area. In this sense, luxury villas measuring 350 m2 saw their prices increase by 14.2% in 2016 to reach €4 million.
Properties range from contemporary designer villas to traditional estates. The asking prices for villas measuring 350 m2 start at €3.5 million, whereby exceeding the figure of €3 million paid in 2015.
Entry prices for villas measuring around 350 m2 in very good locations rose to €2.6 million in 2016 compared to €2.5 million in 2015. “We are convinced that the growth of the real estate market will continue for the rest of the year in Ibiza”, predicted Florian Fischer, Director General of Engel & Völkers España.
The consultancy firm forecasts that the high level of demand will continue, both from domestic and international buyers, for primary and secondary residences on the Balearic Islands, primarily in the most premium segment, where the limited number of exclusive properties will lead to further price increases over the long term.
Original story: Eje Prime
Translation: Carmel Drake