Ibiza Real Estate Market Report – Property Market Insights and Perspectives March 2021

Well…What a year!…I hope this report finds you all well.

We have seen two distinct, and opposite forces, in play on the Ibiza real estate market since the world was thrown upside down in March 2020.

On the one hand; uncertainty, fear and a strongly justified concern for the short and mid term.

This is especially the case for Ibiza that is so largely dependent on free wheeling tourism, anxiously coming through our airport each and every season, and all that is built around giving them all a good time for their money and good enough for them return for the next season.

The clubs closed for the first time since ever, many events cancelled, many hotels did not open.

The goalposts kept moving every week, making it very challenging environment for businesses, the authorities and the islands social tissue.

Visitors to the island collapsed, the economy shrivelled to 1/5 of the norm and while a small 5 week window of a season opened mid July offered some hope, mid August saw a nail in the coffin and the season petered out!

Less tourism, less money, falling occupancy levels, contracting rental yields….a perfect storm!

Prices have to come down…right? Wrong!

On the other hand, what happened was that prices have remained resilient.  True your ´silly´ prices have been readjusted but prices for good quality property have not really moved.

 Sure offered inventory has increased, unsurprisingly, but below pre pandemic levels and new builds are powering ahead with good pre sales momentum.

Transactions for sure have fallen, but are starting to pick up, new builds and licenses are buoyant, lots of building going on and the authorities seem to be more open to making things flow a little easier!

It seems that quality space in a quality place has been revalued throughout Covid 19.  The comparative advantages of Ibiza have been put into play. Those who can choose, are starting to choose.

Registered population on the island has grown and not only on the back of Brexit, home sales are picking up and the leading firms on the island are seeing strong demand.

I  believe the island is going through its proverbial seven year change  and will emerge different , interesting , strong and as always unique.

Iconic venues may change hands, new and different options will surface, exciting ideas will emerge and overall an exfoliating metamorphosis will mark the next Ibiza.

Having experienced now five,  seven year island revivals,  I am sure it will emerge with that special energy, creativity and vibe that always lies thick under its skin but perhaps in a new body.

I, as I thought in 2013, think we are about to start a new and exciting phase for the island which inevitably will result in higher prices pretty much for everything but especially quality real estate assets.

We have been consolidating over three years now and the time is ripe. Get ready for the next leg up !

Keep safe,

Clive H