Ibiza’s prime property prices going up

Demand for top property in the upper price bracket of 1 - 5M Euros has increased by 20% and outstrips supply for prime locations according to international luxury real estate network, Engel & Völkers which is reporting a 20% increase in sales for the first half of the year over the same period of 2012.

Client demand has driven market prices up for front line properties, particularly contemporary designer villas, houses with sea or rural views where prices have increased by an average of 10% since 2011. Furthermore, these properties are selling faster with the average sale period reduced to 6-12 months as opposed to 12-24 months.

Client demand is particularly high for the most exclusive residential areas of Es Cubells, Cala Jondal, Talamanca and around the centre of the island`s hotspots Santa Gertrudis and San Carlos where prices for top quality property in prime locations range from 2 to 20M Euros.

However, the price increases are only applicable to the top end of the market whereas apartments and sub prime properties in other areas have reduced by approximately 10% and for these properties the selling period is longer (up to 18 months).

Ibiza continues to be a magnet for celebrities and trendsetters from all over the world. Internationally renowned restaurants, beach clubs and nightclubs play an important part in providing the infrastructure that attracts this international clientele. Some of this summer’s most popular haunts include the Cipriani Group’s bar/restaurant in the Ibiza Gran Hotel, the Blue Marlin, Lio restaurant and cabaret show, Destino (both operated by the Pacha Group), Ushuaia, the new Ushuaia Tower and the recently opened Nikki Beach Club.

Currently the market is dominated by German, Swiss, British buyers followed by Dutch, Belgian, Italian and North American. Most properties are sold to wealthy cash buyers and the average spend is in the region of 1.5 € million.

Improved flight connections in winter have also assisted the second home residential market with British Airways operating from London City and Air Berlin from main German airports. Easyjet and Ryanair have also extended and increased capacity on this route.

For more information, visit engelvoelkers.com/ibiza.