Spain is enjoying a thriving real estate market, and housing investments are flourishing, mainly powered by expats and foreign investors. Ibiza is indeed one of the ripest real estate markets in the country, and it has a great to offer to all kinds of investors, including the very rich high-profile investors, homeowners, and millennial buyers.
For the last five years, Ibiza has amassed great progress and development in terms of real estate growth. Aside from being the clubbing capital of Europe, this island holds immense appeal for its spiritual heritage, historic culture, and the vibrant beauty that surrounds it. It makes sense for anyone and everyone to want to invest and carve out a piece of their own on the island.
In this article, we will walk you through the trends and potential witnessed in Ibiza, and explain the dynamics of investing in this thriving real estate market.
Here’s everything you need to know:
Significant Market Growth
It is pertinent to note that the market of Ibiza has grown rapidly in the last five years. Purchase transactions in 2013 were 300,000, and they rose to a striking 600,000 in 2018. 2019 has been a wonderful year for Spain, as real estate prices have increased by 5%, and Ibiza is one of the markets that has reaped the greatest benefits.
Given the low-interest rates and the rising prices, investors find Ibiza to be one of the most lucrative markets, especially for rentals as the tourist influx continues to expand and evolve. Ibiza’s property market has witnessed a striking growth, marked by the emergence of countless development projects, high-rise luxury buildings meant for the elite, housing schemes, economical apartments and more.
Given the recent reductions in rental prices, more and more properties have emerged to reap the growing benefits of reliable rental incomes.
Good Value in the Market
Ibiza boasts the most unique and distinctive housing market, comprising of small housing stock, new building projects, villas on the picturesque islands of the western Mediterranean, and high-rise properties that provide remarkably high land values.
The real estate market of Ibiza offers good value and considerably greater potential than saving up your money in the bank. You see, market trends reveal that the values of seasonal rentals are impressively high, and houses tend to sell for a significant profit as the property prices are rising and the demand is ever-growing.
Experts believe that if you can invest two to three million euros in an apartment in Ibiza, alongside obtaining your tourist license, you can take early retirement and live your life hopping across Europe.
Properties, such as guest apartments and condos tend to be rented for short-term leases of fifteen to twenty weeks, and they have the potential of providing you €150,000 a year!
Attractive Rental Returns
2018 was a splendid year in Ibiza’s housing market, as it allowed the real estate industry to set on a course of moderate development, heightened the pace of construction and growth in both, property prices and sales. The real estate market of Ibiza entered 2019 with a strong grip on all three fundamentals that drive a market towards growth and prosperity.
However, the real income is to be made in rental investments. You see, for the last two years, experts have witnessed a powerful increase in rents, and investors across the world are keen to bank upon these attractive returns. If you want to buy a house in 2019, whether to sell off or rent out, Ibiza is certainly your best choice in Europe.
Spain has witnessed an overwhelming surge of increase in asset prices, however, these prices continue to be significantly less than other European cities, including Amsterdam, Paris, and London. Ibiza offers profitable returns that are above the average in other Europe cities.
Consultants and experts believe that 2019 is a terrific year to invest in Ibiza for a variety of reasons. Primarily, the price of housing is swiftly rising and expected to rise further, typically by another 3-4%. The real estate sector is heading into an expansive cycle, and keeping in mind the trends witnessed in 2018, Ibiza will continue to welcome moderate growth, despite the economic slowdown that has impacted other European cities.
Given that the demand is soaring and the prices are high, it is important to enter the real estate market of Ibiza with a credible and competent real estate agent. As the pace of development and housing prices continue to rise, Ibiza is also witnessing a striking growth in the real estate business, so there are many real estate agents to choose from.
However, it is important to choose an industry leader and a market specialist with a dynamic network of professionals to streamline your investment decisions, and widen your investment opportunities.