Ibiza Real Estate Market Insights January 2021

Es Figueral in the North East of Ibiza

IBIZA NEWS - The Real Deal

– Wishing you all a Happy and Healthy 2021

It’s probably a good time to look at the past year and look at what has happened overall in the Ibiza Real Estate Market and what we might expect for this year.

Lets break it down;

Home Sales already in a downtrend since 2017 continued to fall and not surprisingly slowed considerably in Q2. However Q3 saw a noticeable pick up and we expect that to continue for the next few quarters.

Both online and offline queries have increased considerably during the lockdown and a part of that is looking to convert. Agencies are reporting increased interest perhaps as the pandemic has increased awareness of quality space.

Prices have been consolidating sine 2017 after a sharp revaluation in prices. During the 2020 listed prices marked down somewhat but demand for quality is still robust. We don’t expect to see substantial falls and as the uncertainty lifts we believe that prices will start to move higher and initiate the beginning of another significant up leg.

Inventories ticked up again especially during the 2Q/3Q but are coming down slowly and we feel that listed offered stock will start to fall over the course of 2021.

Residential Building Permits leaped during the summer and look like we will close the year at multi year highs while Mortgages Issued rose sharply. This is pretty indicative of strong confidence in the market!

For sure uncertainty still prevails and we rely heavily on tourism receipts, which in turn has a significant impact on property prices. While it will probably take some time before we regain prior levels we think we will see a better year in 2021 and hopefully continue to grow from there in coming years.

The Hotel Sector is most likely to see some movement as some assets have come to the market. We believe there is strong interest in this asset class at the right price and for the most part we do not expect to see any real bargains appearing but we will see some transactions taking place without a doubt in 2021/22 as ownership changes hands.

A good year to get positioned!

Whats happening?

Ibiza Town will have a new 5 Star Hotel in 2021

KKH Property Investors,

The property of the site and the five-star hotel that is being built on the former site of the Serra Cinema in Ibiza, between Passeig de Vara de Rey and Ramón y Cajal and Bartomeu Vicente Ramón streets, has been forced to delay the opening to the first half of 2021.

The Hotel will be operated by the OD Hotel Group.

ThE NORTH OF PLAYA DEN BOSSA IS EVOLVING- HIPPIELEMENTS

New Develpoment in Playa Den Bossa

Inspired by the hippie times, HIPPIEMENTS reminds us of the young and wild years of Ibiza, combined with high-end quality, stylish architecture and perfect service. Ground has broken in 2020 and the 34 units are now available off plan for delivery in 2022.

Prices start at €650,000

ANOTHER QUALITY ADDITION TO THE SANTAN LANDSCAPE

OKU Ibiza to open in May 2021

Formerly known as Casa Cook, it has undergone a phase of construction to make it the first five-star in San Antonio, and will feature 189 rooms and suites and a 180-square-meter private four-bedroom villa for those seeking more privacy. One of its strong points are its two pools and its morning yoga.

Of course, in the case of Ibiza, the hotel will have a resident DJ to set the sunsets. In addition to music, exposed concrete, stone, wood and linen are the materials that will cover the tourist during their stay.

Is this going to finally happen? Old fish market

MERCAT VELL and SA PEIXATERIA  MARINA IBIZA

After more than a decade this project seems to be finally moving forward.

3 million Euros are earmarked to rehabilitate and refurbish the fish market and the fruit & vegetable stalls in the Marina.

If done properly it could represent a much needed push to revitalise the area especially off season

What else?

IBIZA PRIME RETAIL - €4,000,000/250 M2 OR €16,000/m2

A private buyer has acquired from a family office the premises that the cosmetics firm Rituals has rented in Ibiza valued at more than 4 million euros, according to the press. 

The 250 m2 store is located at 14 Bartomeu Roselló , the island’s commercial avenue par excellence, where well-known brands such as Stradivarius, MAC, Zara Home, or Intimissimi.

la granja shut down - hope this gets sorted

San Antonio Town Hall has closed down La Granja the boutique rural hotel with a farm to table restaurant with a cool vibe frequented by locals and visitors alike. Lets hope they get sorted out, get the licenses they need  and can open soon enough!

Isla air inter islands hydo plane shuttle planned

A new operator Isla Air is planning for inter island flights on its hydroplanes including flights to our sister island Formentera

Stay tuned!

lot is planning a direct flight warsaw ibiza this season

Polish Airline LOT  is scheduling a direct flight from Warsaw to Ibiza this summer.

We have seen a steady increase in Polish tourists albeit from a small base but may well become an emerging market for the island.  Witamy!

 

Lets check some numbers

housing starts are picking up

Residential Permits Units shoot up!

A huge increase in residential building permits recorded – 494 units have been granted permits September YTD.

Demand is there!

listed offered stock is at a peak

Listed Homes on offer

After 8 months of rises listed homes for sale seem to have peaked, we expect inventory to start decreasing in coming quarters.

Demand is robust  at the right price!

home sales pick up in the 3rd Q

Residential Home Sales have picked up sharply in Q3!

Still below 2019 but picking up momentum we are bottoming out and are likely to see sales increasing in coming quarters.

keep your eye on ...

The saga continues ...the iconic ibiza yacht club concession

The Club Nautico de Ibiza,  whose concession was renewed in in 2018  the Port Authority to the existing operators which have been managing the entity since 1970.

Other contenders that lost the bid claimed irregularities and the courts has ruled in their favor…  to be continued

apparent increase in hotels on offer ...wysinwyg

A significant  increase in hotels on offer for sale have appeared in the media and on several listing sites.

Not surprising perhaps, given the current circumstances, but beware of mock ads and monkey interest!

Real bargains will be harder to come by than many would like to think!

next issue march 2021

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