IBIZA NEWS - The Real Deal
Hope you are all keeping well!
With Christmas around the corner, the island is settling into winter mode after what has been a stronger and better summer season than most expected.
In a nutshell, numbers were overall 3 x last years and around 60% of what was 2019. Not that bad, considering!
In spite of the winter season, things are pretty busy here on the island.
The real estate market continues to be strong with solid demand especially in the upper segment of the residential market with most kpi´s pointing to a secular trend in rising prices.
Building costs are experiencing in some cases as much as 30% price increases and are expected to stay firm for a while.
Supply chain disruptions are also affecting time frames for building execution adding to overall costs.
No doubt this will impact existing prices increasing the overall value of property.
New ownership is ever present in a flurry of deals that Ibiza is currently experiencing, be it the restaurant, hotel, leisure or the club spaces and there is strong demand for the sector from both domestic and foreign investors.
We expect exciting news to trickle though and look forward to innovative offerings for next season.
The new Six Senses Ibiza hotel has added new, fresh dimension and acts as a catalyst for the north of the island.
Recently opened restaurants are consolidating well and adding to the rich and diverse landscape and attracting investor attention.
Institutional investors are on the lookout to get in on the current flux, only limited by the scarce supply, which will very likely see a revaluation in prices.
Overall the tone is very positive with mostly very optimistic projections going forward.
We fully subscribe to the trend and feel that there are strong tailwinds and returns can be very compelling.
Having said that, thorough due diligence and solid local advise is more warranted than ever
Whats happening?
Pacha group buys tipic club in formentera
Tipic-Formentera
The Pacha group, majority owned by Trilantic Capital Partners, has acquired the iconic Tipic Club in Formentera.
The club opened since the early 70´s, one of the few clubs on the island and with a capacity for 500 people has been closed since 2019.
Press reports the current owners sold for € 1.4 million.
No official comments form the group as to what the plans are going forward.
Keep you all posted!
the Standard will be opening in Ibiza
The Standard Ibiza
KKR Property Investors have reached an agreement with The Standard Group to manage the new 70 bedroom hotel on the centric Vara de Rey in Ibiza town.
This would be the Standard Groups´ first hotel in Spain, and second in Europe.
The Standard Ibiza is expected to open in 2022.
Talamanca- new development
New Development
Located in Talamanca ,by the beach minutes from Ibiza Town, Torres Heights fuses the Mediterranean concept of slow living with cosmopolitan urban vibes. The best of both worlds is on your doorstep
16 residences, 2/3 bedrooms with sea views and within walking distance to the beach.
Inside The Apartment Collection at Torres Heights, the striking aesthetic takes its cues from minimalism, with a hint of rusticity echoing the island’s vernacular style while juxtaposing the functionality of the design. Intelligent lighting, unique materials, and high spec finishes create inviting, liveable spaces, and open plan living maximises the island’s glorious natural light to invoke a feeling of space, calm, and freedom.
Available off plan for delivery in early 2023!
Prices start at €950,000
the party scene
WHAT ABOUT THE CLUBS?
Rumours around Space In Ibiza
There is noise and speculation, following rumours of possible new ownership at Privilege and somehow bringing in the old Space team, in some form or manner.
A surprising announcement the Hard Rock Hotels mega billboard calling for the coming soon opening of Space left many scratching their heads.
The question lingering is who owns the brand, Pepe Rosello or the Matutes Group?
The saga continues…
more gossip
Restless in Retirement
Ricardo Urgell, founder of the Pacha Group who sold the majority in 2017 to a group of institutional investors lead by Trilantic Capital Partners is bored!
News is out that he is looking (also) to set up a venue in Formentera with a few local partners.
The plan seems to be a similar set up to the Pacha owned Lio Club / Cabaret in Ibiza but adjusted to the island of Formentera vibe.
Stay tuned!
Real estate tax changes on the horizon
The ´Plusvalia Municipal´
Changes in the tax officially called the Impuesto sobre el Incremento del Valor de Naturaleza Urbana (IIVTNU).
The changes affect sellers positively as until now the tax was paid even if there were no capital gains and affected inheritances and donations adversely.
A new system will be in place with revised coefficients and offer two options for the seller.
In essence it will be a fairer tax and perhaps add liquidity to the market.
The municipalities will lose an important source of income.
What else?
BLASSON INVESTMENT PROPERTIES BUYS THE HOTEL PUNTA NEGRA
Another big buy in the luxury hotel space!
Over in Mallorca, the historic, 135 room, Hotel Punta Negra, owned by the Blanes family has been sold to Blasson Investment Properties
The total investment is being put at 180 million euros. Roughly half in purchasing the asset and the other half in Capex.
The hotel is undergo a major refurbishment and convert from a 4 star to a 5 star further consolidating interest in investing and positioning in the premium market in the Balearics.
AZULINE LOSES 3 HOTELS IN SANTA EULARIA
New Operators at 3 hotels in Santa Eularia !
The budget hotels Coral, Atlantic and Cala Martina until now managed by the Azuline Group, will be managed by the Menorcan hotel group MIJ.
The group, based in Menorca, has been growing sharply in recent years notably in Mexico and is positioned in the budget 3 star space.
The MIJ group just landed recently on the island operating the 3 star, 70 key, Hotel Paraiso in Punta Arabi, also in the municipality of Santa Eularia.
The news doesn’t bode well for the Azuline group.
construction costs up by as much as 30%
Construction costs in Ibiza are seeing significant increases and companies are struggling to budget properly.
In additions disruptions in the supply chain are adding pressure on time frames meaning delays in execution.
french experimental group takes over Hotel montesol
The Paris based group, already in Cap Des Falco with the beach club, will take over management of this iconic 33 room hotel. It will also open the new Sabbaba restaurant specialised in Israeli cuisine.
work well under way at the new trs hotel
The new 5 star TRS hotel is set to open next year.
The Matutes group will be adding the adults only, luxury brand in San Antonio right by the beach of Cala Gracio
Lets check some numbers
strong recovery in tourist arrivals
Tourist Arrivals Rebound
The island economy depends almost entirely on tourism,
We follow this indicator as a gauge for the underlying strength of the real estate market.
This season has seen a strong rebound in tourism, higher than most expected.
Across the board numbers are around 3x last year and some 60% of 2019.
We expect to see further recovery for next season.
Listed offered prices continue to move up
Residential Home Prices
Listed prices across all price points continue to rise steadily.
We expect the trend to gradually continue over the coming quarters.
Demand is robust and scarcity is still a large factor behind these increases.
New developments are selling swiftly and the secondary market is picking up with transactions sharply up
Building Permits steam ahead
Building permits holding well
In spite of the pandemic building permits remained brisk in 2020 and so far in 2021 seem to be powering ahead providing a small but continued pipeline.
The number of multifamily developments are included in these numbers which account for the bulk of the total units.
This is actually good news as we do need to have more accessible housing especially for the island working resident population
keep your eye on ...
tribulations at the ibiza club nautico
The Ibiza Yacht Club
The club nearly 100 years old will see its concession end in 2022. At the moment the existing club and the Doce Millas are the only contenders.
With the new 35 year concession is in place expect a major revamp.
ibiza town hall to build a new stadium
A new stadium in Ibiza
The Ibiza Town Hall is looking to invest €2.5 million in building a new municipal stadium in Ca n´ Escandell