IBIZA NEWS - The Real Deal
Hope you are all keeping well!
The island of Ibiza is getting ready for the coming season and for the most part there is a growing anticipation and excitement as it seems that all in looking good to the extent that the season may well open sooner that usual with the Easter holidays firing the start gun!
Lots of exciting new venues will be opening, new hotels and the clubs will be back with a vengeance and the air is full of positive expectation!
The real estate market is busy, busy, busy.
Home sales have picked up sharply, prices are continuing along a steady upward path and the market is brisk.
Interest in the premium property segment is higher than ever, quality supply is limited and construction prices are seeing significant increases in costs.
Private jet activity in 2021 hit an all time high with over 7,000 arrivals carrying over 20,000 passengers, hitting an average of over 100 per day in peak, and a constant flow of traffic off season. Up over 25% vs 2019.
A big transaction took place in the hotel segment as the German fund 18.12 sold the 7 Pines Hotel operated by Kempinski to the newly created, also German EV Hotel Fund for a reported 130 million euros, having invested some 75 million euros. A handsome profit!
Calvin Harris has bought a super cool farm on the island and when not DJ ing is working hard in the fields. Good for him!
A new law housing law is being passed that will affect prices somewhat, probably putting more pressure (quite the opposite of what its intention is). More details below.
We expect the island to recover much of the activity with a good year for tourism, we think that the high net worth migration to the island will continue and that prices will continue to grow during the course of the year.
Institutional demand for assets is high and we believe that we will continue to see more visible transactions taking place in coming quarters.
All in all exciting times!
Whats happening?
18.12 sells 7 Pines to EV for €130 million
7 Pines Kempinski
The fund 18.12 Investment Management has sold the & pines property in Ibiza for a reported 130 million euros to the German EV Hotel Fund.
The hotel, inaugurated in 2017, is operated by the Kempinski Group, which 185 keys spread on a plot of 56,000 m2, with three bars and restaurants, a spa center and a kids club and an average ADR of €300.
18.12 invested €74 million in the project
Palladium sell the don carlos hotel for € 30 milion
The Palladium Group has sold the 168 key 4 star hotel for €30 million to the investment funds Stoneweg and Bain Credit Capital according the press reports.
The hotel is located in the municipality of Santa Eularia and on the sea front.
The Palladium group will continue to operate the hotel until the end of 2022, after which it will be re styled and refurbished.
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.
CALA TARIDA- new development
New Development
Tarida by NCalma Homes is an exclusive project in a residential complex next to the beach of Cala Tarida in the municipality of Sant Josep in Ibiza. With easy access to the beach, a total of 8 swimming pools with landscaped areas, 24 hour private security and a very pleasant climate throughout the year offers an excellent opportunity to reside in Ibiza. The Tarida homes have large, bright spaces, open to the landscape, which allow you to enjoy views of the sea with absolute privacy.
Available for delivery in 2022!
Prices start at €693,000
the party scene
WHAT ABOUT THE CLUBS?
Good Vibration…Growing Expectations
Lots of good vibes surrounding the clubs and loads of expectation.
After a two year shut down, we are finally opening with a vengeance and not that but opening earlier than usual with some stellar lines ups in the pipeline.
You can feel the excitement growing.
Put on your seat belts…This is going to be a big one!!!
VAcation rental Law changes
The New Laws
The Balearic autonomous government is passing a law that affects vacation rentals in the Balearics.
The essence of the law is to promote a circular sustainable economy which mostly relies on the tourism industry.
The most important is that no new rental licenses will be issued over a 4 year period, timeframe in which the local regional governments need to establish the criteria and tourism model going forward.
Presumably this will impact current properties that hold the licenses have become more valuable and can command higher prices than those who do not.
The other laws refer to eliminating fuel oil heating installations, the elimination of single use amenities, water usage controls on taps and tanks and a registry of all staff that work on the property.
What else?
Calvin Harris acquires an organic farm in Ibiza
Terra Masia
The iconic DJ Calvin Harris has bought a large farm in Ibiza from producing eggs, vegetables, wine and farm-to-table meals to hosting special events.
A welcome addition to the island centered around sustainability and preserving the magic Ibiza delivers.
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.
Private jet traffic jumps to all time highs
Private jet air traffic jumps to all time highs in 2021.
Air traffic has increased over 26% compared to 2019.
Some 14,500 flights landing and taking off carrying around 40,000 passengers
This is roughly 7250 arrivals or an average of 20 per day.
In season this multiplies to over 100 flights.
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.
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.
will the ibiza mega yacht moorings be ready for the season
Ibiza Large Berth Mooring
The news reports that the the opening of the Ibiza Marina designed for mega yachts with capacity for 60 meter berths may be delayed. The concession comes with obligations to remodel and refurbish and the season will start to open in April.
It is unclear they have the time.
The clock is ticking!