Real Estate / Properties on Ibiza

Market development

The property market in Ibiza has developed quite impressively in the past decades.
While the first waves of buying in the 70s, 80s and 90s were impressive, the demand for real estate accelerated significantly again with the introduction of the euro around 20 years ago. Whether apartments, villas or fincas - all properties have a solid performance. This performance is only interrupted by the real estate crisis from 2008 to 2011. However, the prices of second- and third-class properties were mainly corrected during this time. Quality properties were less than average affected by the crisis.
The Brexit confusion has caused great irritation on the British buyers interested in
real estate, but this uncertainty is increasingly diminishing.
In general, there is a trend towards ever more spacious and ever more comfortable properties. Rarely does a newer villa or finca not have high ceilings, generous sliding glass elements, a solid heating system and of course an air conditioning system.

Real Estate market situation

The Ibiza real estate market is currently in a robust condition.
Negative factors such as Brexit or a slightly weakened economy have a very mild impact on the market, as there is still a high demand for Ibiza properties.

As for 2-3 years, Ibiza's fincas are celebrating a brilliant comeback - Fincas are in demand like never before.
There is an increasing trend towards natural living in a quiet environment - possibly a consequence of the often hectic urban everyday life in our day and age.
Villas or fincas up to € 3 million are in particular demand, especially fincas in the Santa Eulalia and Santa Gertrudis area or not far away, and more modern luxury villas around Ibiza Town to Es Cubells.

Real Estate market outlook

TERRAPARTNER expects a solid real estate market in the coming years. A steadily growing interest on the buyer side meets a rather tight market on the supply side (partly due to political / regulatory reasons), which is why stable or slightly rising prices can be expected.
Only extreme external shocks could endanger the stability of the market, which is not foreseeable at the moment.
It has recently been noticed that the focus on Ibiza Town is waning and Santa Eulalia is becoming increasingly attractive, not at least because of many innovations in the town and the marina.
We expect this trend to continue.
It is generally expected that interest in locations that are a little further away from Ibiza Town will increase. So far, this location has only been considered by a small number of people interested in villas or fincas.

Legal aspects for property purchases

The complexity of legal questions when buying a property, whether villa or finca, is enormous.
Since an overview of all relevant questions regarding a property purchase in Ibiza is not possible in a short form (we are talking more about the scope of a book here), we recommend discussing it with us (in the first step) and then, if necessary, consulting legal experts later.
We work with various competent service providers in this regard, e.g. with the largest and oldest Gestoría in Ibiza, UNIDAD.
A Gestoría is a complex service provider with a legal department, tax consultants, insurance experts etc. All conceivable administrative processes for your property (villa, finca, apartment) are covered by a Gestoría.

Purchasing a plot on Ibiza

Good building plots in Ibiza have become very rare in the past few years, especially those that seem affordable.
This is particularly due to the fact that the island government has issued more and more restrictive rules and laws in recent years that make it difficult or even impossible to build land.
Especially in the Campo, i.e. in the country, very important land classifications can no longer be built on, e.g. Rústico Forestal (wooded areas).
Only on Rústico SRG, which is mainly agricultural land, can still be built under certain conditions, but to a much lesser extent than a few years ago.
This situation naturally drives up the price in the market and also affects the urban land market, which has also experienced significant price increases.

New construction of a villa or finca

Those interested in real estate who want to build a villa or finca on their own must not only keep an eye on the costs and risks, but also on the timeline:
The application for a construction license takes around 2 years, even in urban areas. In the country, for example when building a finca, it is often a few months more.
In addition to the construction time of around 12-18 months, it is also necessary to wait several months for the construction end papers, which takes another 6 months, often longer.
All in all, it often takes 4-5 years from the decision to buy a property to moving in. Understandably, our clients therefore generally prefer to buy existing properties.
A major advantage of building a villa or finca on your own is the prospect of a significant increase in value, which can certainly be a consolation for the long waiting time. However, it must be taken into account that a lot of capital is tied up over a long period of time, which could possibly have been invested in other profitable ways.