Ibiza: Land of the rich and famous

Thursday, July 5, 2012. Ivan Radford @themovechannel

Ibiza is the land of the rich and famous property buyers, according to Sotheby's International, whose new Ibiza website (Ibiza Sotheby's International Realty) has just launched.

Ibiza is the land of the rich and famous property buyers, according to Sotheby's International, whose new Ibiza website (Ibiza Sotheby's International Realty) has just launched.

 70 per cent of the new portal's listings are valued over €1.5 million euros, a market that Sotheby's says "perfect captures the trends", as wealthy investors dominate the island's real estate.

Amanda Martí, Director of the Ibiza Sotheby's International Realty office, comments, "Remarkably, given obvious global economic conditions, this winter was one of our busiest on record with the bulk of buyers looking for a property priced between 1 and 2.5 million euros. With a scarcity of bank lending, most of these intend to purchase with cash and hope to do a deal on the quoted asking price. property in Ibiza is selling, the market is moving, provided the price is right."

 Amanda continues, "The most sought-after homes in Ibiza throughout 2012 are frontline to the Mediterranean with good sea views or tired properties in need of renovation but in the best locations.  Buyers are also waking up to the beauty of the wilder and less commercialised north of the island, for example the unspoiled town of Sant Joan de Labritja where we are currently selling a whitewashed 3.5 million euro villa designed by Jade Jagger for Yoo. Our problem is a lack of modern style properties with privacy and fantastic sea views, the demand is there but the supply is diminishing. Owners are wise to this and therefore reluctant to reduce their prices."

Amanda explains, "Prices on Ibiza have fallen, as is the trend across much of Europe, although not as far and as widely as in mainland Spain.  From the peak in 2005 to 2006, values have decreased 20 to 30%, perhaps more for apartments, but it is location dependent with sought-after areas and desirable modern architecture holding up much better. The reason for the more marked price drop-off in the apartment sector is the reluctance of banks to lend, putting the brakes on this lower end of the market. However, new mortgage options are appearing on an almost daily basis in Ibiza with 70% loan-to-value available for non-residents on the condition that the projected monthly repayment does not exceed 40% of the buyer's income."

Amanda finishes, "With many different nationalities participating in the property market, vendors largely British and German, buyers from Holland, Switzerland, Belgium, Italy and the City of London, the Ibiza market remains a solid investment and resilient to the bigger picture Spanish property crisis. A small island, at little over 570km² in area, there is a lack of building land and strict planning laws in place to keep prices high and the vital supply-demand equation in check. Ibiza is still the "in" place to own a home and works off-season for permanent living thanks to Morna International College teaching the UK national curriculum and the College Francois subsidised by the French Government. British Airways is also offering direct flights from London City Airport throughout the winter for commuters or weekend break-ers."

Author - Dan Johnson

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