Mallorca and Ibiza Sotheby’s International Realty - A half year review
The Balearics have been enjoying the benefits of a market in recovery for quite some time now. The news coming out of Mallorca and Ibiza Sotheby’s International Realty’s offices as they reflect on the half-year is certainly very positive.
The Island undergoing the biggest upswing is Ibiza. Glynn Evans, Managing Director of Ibiza Sotheby’s International Realty, says, “This year in particular there has been a constant stream of luxury lifestyle news items relating to Ibiza which show that big things are happening. Ibiza is now thought to have the most expensive restaurant in the world, 1,500 euros per head for 20 courses at Sublimotion at the Hard Rock Hotel, while multi-Michelin-starred chefs, brothers Ferran and Albert Adria of elBulli fame, have just announced that they’re opening a new restaurant in Ibiza in 2015.”
Glynn continues, “The 16th edition of the annual Gumball 3000 Rally concluded in Ibiza in June bringing supercars and supermodels to the Island, the Class 1 World Powerboat Championship is on its way for a three-day Grand Prix in September, then the Port of Ibiza will start an eight-million euro facelift to create a much-improved superyacht haven. Music-wise, venues like Ushuaia, Hard Rock Hotel and Ibiza Rocks are bringing over world-famous headline acts to their outdoor stages with capacity for several thousand revellers.”
“It’s not just hearsay anymore that the Island can rival the French Riviera in terms of cuisine, ambience and cool-factor, it’s true,” says Glynn, “we’re attracting buyers who have previously had homes in the South of France but are selling up and moving on – to Ibiza. The celebrities are also coming early this year, we’ve had Naomi Campbell, Sir Paul McCartney, Kate Moss, Enrique Iglesias, David Silva, Paz Vega, all in the past few weeks, and it all adds up to Ibiza being a very desirable place to own a second home.”
“Halfway through 2014 and the Island’s luxury property market is in a very encouraging state. At the high end, there have already been in excess of 25 transactions for villas priced over two million euros – some with which we’ve had direct involvement, others where we have gained specific knowledge. There will undoubtedly be further high-end sales that haven’t been openly publicised. For Ibiza Sotheby’s International Realty in particular, we are experiencing unprecedented demand, up more than 50% on 2013, and we have already sold our target number of two million euro-plus villas for the whole of 2014.”
Glynn continues, “Although it’s hard to evidence, particularly with the notoriety of Spanish statistics, prices are on an upward trajectory. The volume is really too low at the high end to draw proper year-on-year comparables, but I can tell you that recently we had two parties fighting over the same house and one offered 150,000 euros over asking price to seal the deal. Likewise, I would very much love to have some of last year’s sold property still on our books, as I am sure they would achieve higher prices today.”
Glynn finishes, “Nationality-wise our leads are still predominantly British, followed by a more even spread of Germans, French and Dutch. Generally interest is from Europe, and we’re not noticeably engaging Russian or Chinese buyers via the new Golden Visa programme, as perhaps we had previously expected. There is no reason why the second half of the year won’t be as positive as the first for Ibiza Sotheby’s International Realty. Possibly there’s a little luck involved, but we’re already ahead of expectations. The exchange rate could also help to bolster the British market with the pound now equal to 1.25 euros – versus 1.15 euros just one year ago.”
Across in Mallorca, the excitement may not be at quite the same fever pitch as Ibiza, but nonetheless confidence and expectations are high. Daniel Chavarria Waschke, Managing Director of Mallorca Sotheby’s International Realty, says, “Everything is on an upward trend for our Port Andratx and Palma offices right now. Enquiries are up, sales are up and prices are on the increase too. Whilst last year we may have seen price rises of 1 to 2%, this year they’re more in the 4 to 5% ballpark, particularly for properties that are frontline to the sea as demand is so high in comparison to supply.”
Daniel continues, “Most buyer interest is directed at ready-to-move-in condition villas in the three to five million euro price bracket, predominantly in the southwest of the Island, Port Andratx in particular, with a little more activity around the Son Vida golfing suburb of Palma. Speaking of Palma, we have also sold a handful of city centre apartments this year, with refurbished historic palaces always proving popular.”
“Nationality-wise we already had most leads coming from the UK and, if anything, they are getting greater in number. We are also seeing more Scandinavians in 2014. Although the General Council of Notaries has recorded US, Chinese and Russians among the most active foreign buyers in Spain in the first quarter, up 88.9%, 83.1% and 62.6% respectively on the same period in 2013, we are not really feeling it yet at our offices. However, as the year goes by, I suspect more non-Schengen nationalities will slowly come to the fore. Especially as the Balearics had the highest number of property sales to foreign investors in the whole of Spain in 2013 with some 30.73% of house sales attributed to foreigners, much higher than say Andalucia at 12.35% or Catalunya at 11.54%. For this reason we expect the rest of the year to be even better than our already above-average first half.”
On the Market in Ibiza - Ref 6708 – Villa in San Lorenzo
This newly-built modern property is set on a large plot in a peaceful valley at the heart of the Island. The main home boasts a huge reception with open-plan kitchen opening directly onto the beautiful gardens, there are also four en-suite bedrooms with dressing rooms. A separate guest house has a further en-suite bedroom with dressing room, a kitchen and living area. Outside the 20 metre swimming pool is surrounded by a decked terrace with outdoor kitchen.
Five bedrooms, Six bathrooms
Built area 550m², Plot size 24,000m²
Price 3.8 million euros (approx 3 million GBP)
For more information, visit ibiza-sothebysrealty.com.
On the Market in Mallorca - Ref 6655 – Finca in Port Andratx
This beautiful country residence enjoys peace and solitude whilst being just a few minutes walk from the shops, bars and restaurants of Port Andratx. There is a large master bedroom suite with walk-in wardrobe and bathroom with Jacuzzi, alongside three en-suite guest bedrooms, and a substantial living/dining area with spacious fitted kitchen. Outside there is a well-maintained English lawned garden with large swimming pool as well as a summer kitchen and BBQ. The plot is generously sized such that it is possible to keep horses.
Four bedrooms, Five bathrooms
Built area 450m², Plot size 25,000m²
Price 6.5 million euros (approx 5.16 million GBP)
For more information, visit mallorca-sothebysrealty.com.
