Ibiza Real Estate Market Insights January 2023

IBIZA NEWS - The Real Deal -

Happy New Year to you all!

As we pack away the festivities and slink into the quietest period of the year,it is a good time to recap on 2022 and put out some reflection for 2023.

2022 saw the island bounce back with a vengeance closing the year with a record number of visitors, a record in terms on total spend, real estate prices at all time highs and residential transactions at a 5 year peak.

Hotels in Ibiza have seen strong occupancy at well over 90% in peak, with ADR´s jumping over 25% in peak vs 2019 and managing some 2 million check ins for 9 million nights sold.

As almost everywhere find personnel has been a challenge, but in the end everyone seemed to get by and made the most the the season.

The coffers at the hotels,clubs,restaurants and bars are well replenished and most are now enjoying some well deserved downtime.

So, whats on the cards for 2023?

Sure, global geo-political and economic uncertainties may and probably should eventually slow thing a little for the island, but as it stand today the 2023 season promises to to a strong one, perhaps not as intense as 2022 but strong nonetheless.

While property prices are beginning to show signs of consolidation and home sales are likely to slow down somewhat, we do not expect to see much downside and demand is still robust for high quality product.

Premium hotel assets are changing hands at around –€1mm/key and investors are still keen to get a foothold on the island, while leisure and hospitality groups are still on the lookout for any opportunities to stake a flag on the island.

One key short term factor will be the municipal and insular government elections in May where we expect to see much noise in the media as the two main drifts, battle out for the electorate.

One part of the political spectrum is keen to maintain and reinforce the existing touristic model while the other is looking to at a more interventionist proposition where the tourism impact is redefined and reduced at at many levels.

See how all this  pans out!!

In the meantime, the island is business as usual with high expectation overall for the island this year!

Stay safe.

Whats happening?

schroders buy the standard hotel Property from KKH

Schroders Capital has bought the property which houses The Standard Hotel in Ibiza town, which opened this summer for €65 million according to the press.

The hotels is a 5 star and has 67 rooms, a rooftop terrace and the Jara restaurant and located in the old part of Ibiza town

The sellers are KKH Property Investors whom acquired the property, a cinema, at the end of 2014 and initiated its re conversion in 2017

As of 1st of jan top bracket property sales tax from 11.5% to 13%

The Government of the Balearic islands passed a decree late last year increasing the property sales tax as of  January 2023 which will bring increase the taxes in the higher price tranches. Impuesto Transacciones Patrimoniales)

          under  €270,151              4% from 5%

             up to €400,000             8% unchanged

             up to 600,000                9% unchanged

            up to € 1 million          10% unchanged

            up to € 2 million           12% from 11,5%

            over €2 million              13% new tranche

Incidentally, the government budget for 2023 has allocated €1 billion  for receipts of this tax vs €660 million budgeted in 2022. This represents some 14% of the overall budget. They seem pretty bullish!

 

senator hotels&resorts buys a hotel in Ibiza

The Andalusian Hotel group Senator Hotels & Resorts has acquired its first property in Ibiza and 30th nationwide. It has 3 properties in Mallorca.

The property is located in Cala de Bou on the bay of San Antonio and the 74 apartments will be geared to the adult only segment

ibiza airport second busiest in private jets in spain

Private Jets in Ibiza

Ibiza is looking to close the year with over 16,000 privates jet landings and takeoff during the year. This would be an all time record, that would be a staggering 22 a day or 11 arrivals. A good indication of the islands magnetism for the ultra high net worth and a consolidation sign that residency on the island is a high quality lifestyle option.

These figures make Ibiza the second busiest private jet by a small margin to Mallorca.

THE ICONIC OCEAN DRIVE UNDERGOING A MAJOR MAKEOVER

Ocean Drive Hotel Ibiza

The iconic Ocean Drive Ibiza is undergoing a major refurbishment ahead of its 25 anniversary this year.

Renovations are underway since its close in October and will reopened for the 2023 season, with new rooms, interiors, the restaurant and of course the iconic sky-bar on the roof.

The rooms will be named after all headline DJ´s that call the hotel their home.

Looking forward to sunset drinks!

the budgets

the 2023 local budgets are being approved

Ibiza Budgets in an electoral year

Tis the time of the year… made a little spicier by municipal and insular election in May 2023.

What is clear across the board is that budgets will increase and while most have big remnants left over from previous budgets the administrative appetite is insatiable.

Sant Josep has just approved it budget of close to €48 mm, up 16%. Sant Antoni is proposing an increase of 5% to € 31,5 mm, while Santa Eularia presents a budget of of 52 mm up 10%.

We are awaiting the budgets for Ibiza town, Sant Joan and the Consell d’ Eivissa and expect to see increase in all those as well.

We will break them down for you as they get offically approved and published

 

whats going on with the revocation of licenses in benirras?

Benirras

A group of landowners in the north had their lands reclassified to urban and granted licenses to build, a change in the balearic goverment led to a declassification and revocation of the licenses resulting a a significant loss of value and actual investment.

This took place in 2007 and went through several upturns and downturns in the law as the governments changed and new laws passed..

At the end of March 2022, a ruling by the Superior Court of Justice of the Balearic Islands (TSJIB) exonerated the Consell d’Eivissa and the Sant Joan de Labritja Town Hall from having to compensate the owners. The judicial resolution ruled out the responsibility of both  institutions in this matter and made it clear that the responsibility is of the Autonomous Government.

Some 10 owners are claiming around €175 million, and the courts without specifying any amounts have declared the Balearic government is liable to pay. The government has just stated it doesn´t know how much it has to pay. let´s see how this pans out

 

What else?

six senses villas & residences for sale

Six Senses Residences & Villas

This is a unique opportunity to own one of a handful of six- to seven-bedroom First Line Villas just steps away from the secluded shorefront of Xarraca Bay.

 
The First Line Villas offer up to  1,000 square meters of living space in addition to rooftop terraces with double bay views.
The additional outdoor entertainment area is ideal for hosting get-togethers from sunrise to sunset and each has a private half-Olympic sized pool overlooking the sea. 

Using locally sourced materials, the villas combine a traditional finca aesthetic with all the modern comforts.
The North and South Village Residences are masterfully designed with both scale and flow in mind.
The layouts offer between four and six bedrooms and between 270 square meters and 630 square meters of interior living space.The interiors are a contemporary interpretation of local design influences, using sustainable, natural materials, wood and micro terrazzo stone.

Outside, the intimate terraces and lush gardens offer views out to the sea. Each residence has its own pool and, in some cases, a private rooftop ideal for entertaining.

The North and South Mansions are also available to rent for larger families and groups and have full use of the hotel amenities

 

NEW PROJECTS FOR IBIZA TOWN

Mercat Vell and Sa Peixeria reforms approved !

The city hall of Ibiza has finally approved the refurbishment and reformation of the old market and the fish market.

This will change significantly the landscape of the Marina and inject a new breath into the Marina area.

The fish market will be reconverted with fresh fish stalls, delicatessens and food market stands whilethe nearby Mercat Nou will offer fruit and vegetables and local produce.

Total investment will be €3.8 mm and is expected to be completed  in18 months.

Pacha for sale?

After a spate of headline news in the last quarter of the year, the line has gone dead.

We would expect to start hearing news on potential partners or buyers surfacing again as we move into Easter.

Stay tuned!

Lets check some numbers

strong recovery in tourist arrivals

Tourist Arrivals Strong  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

The season has been very  strong and is expected to exceed 2019 figures. Good news for the island!

Listed offered prices continue to move up

Residential Home Prices  

 

Listed offered prices across all price points continue to rise steadily and are reaching all time highs for the average market price.

Demand is robust and scarcity is still a large factor behind these increases, though we would expect some easing on current economic climate and uncertainties going forward.

 

Building Permits steam ahead

Home sales are powering ahead.

3Q 22 home sales came in strong and we expect the trend to slow somewhat towards year end.

The market is brisk and demand is fairly strong with a good take up.

 

keep your eye on ...

tribulations at the ibiza club nautico

The Ibiza Yacht Club  Club Náutico Ibiza (CNI) insists that it has presented the “most advantageous” offer to obtain the provisional concession for the management of its facilities by the Balearic Islands Port Authority (APB). In response to its competitor, Puertos y Litorales Sostenibles, the CNI defends that its proposal is “the only one that meets the criteria of the tender specifications” and denies that it has tried to exert “pressure” on the APB by denouncing “the serious irregularities” of your competitor’s bid in this tender. The CNI reiterates that its competitor’s offer should be “excluded” and warns once again that, if chosen, it would mean turning the marina in the port of Ibiza into “the most expensive on the entire island, contravening the spirit and the content of the bidding documents.

 

a second new private hospital in Ibiza?

Work has started, albeit in the midst of a hard lobby against it  lead by the owners of the incumbent private hospital in Ibiza El Rosario.

The new hospital will be located just outside the village of Jesús

next issue MARCH 2023

Translate »