Prices are very firm and at all time highs across all price points, residential home sales hit five year highs and the inventory of available properties for sale is steadily reducing .
We expect to see prices for real estate properties in ibiza to start to consolidate over the coming quarters. The market has had a very strong run in the past few years and what we call real prices will start to stabilise around these levels.
Residential sale transactions are likely to reduce this year as the market will start to dry up a little given there is limited quality supply and much of the good stuff has been snapped up in recent years.
We think that the season will be reasonably strong, though the peak months will be a little patchier and lumpier than in 2022 and the sharp price increase we are seeing in the hotels, restaurants and services are struggling to find acceptance. We expect to see prices adjust downwards especially for next year.
The real estate market in Ibiza will still remain robust for high quality real estate but transaction’s are taking longer to close, the FOMO we experienced in recent years has evaporated and a the higher interest rate environment softens the overall market appetite. Still the supply is becoming more limited and the more market friendly governments will support prices.
