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Property hotspot Ibiza: Prices on the rise in prime locations

Engel & Völkers Ibiza: 20 percent turnover increase reaffirms upward trend

Hamburg/ Ibiza, 11 April 2014. “Interested buyers who are looking for a reasonably priced

top property have unfortunately arrived too late,” said Florian Fischer, Managing Partner of

Engel & Völkers on Ibiza. Prices for exclusive holiday properties on Ibiza have been rising

considerably since the end of 2012. Engel & Völkers registered price increases in this segment

of as much as five percent in 2013. As a result of the higher prices and an increase in the

number of transactions, the two Engel & Völkers Shops on Ibiza registered a growth in reve-

nues in 2013 of around 20 percent over the previous year. With this very good financial result,

Engel & Völkers reaffirms its position on the island as market leader in the premium segment.

Florian Fischer sees the reasons for the property boom above all in the global popularity and

attractiveness of the Ibiza brand: “The island is one of the hotspots where cosmopolitan cli-

ents are particularly fond of acquiring a second home. Demand has risen sharply, especially in

the top segment for properties starting at 1 million euros.”

According to Florian Fischer, most buyers are less concerned with tax-related and economic

aspects in the majority of cases. “It is the unique way of life and the undeniable charm of the

island that entice people to look for a holiday home on Ibiza,” said Florian Fischer, describing

the positive attributes associated with the Mediterranean island in the eyes of many of his cli-

ents.

Magnet for celebrities and the cosmopolitan set

For many decades now, artists and creative types from around the globe have been inspired by

Ibiza. It is regarded as the epitome of chic living and luxury, with a world-renowned club sce-

ne too. The combination of a marvellous climate, beautiful beaches, a traditional Mediterrane-

an lifestyle and its social and cosmopolitan atmosphere, famous the world over, is resulting in

a continuously growing number of holidaymakers (+5 percent in 2013 over 2012) and has

turned the island into one of the trendiest places to own a second home. “Discretion is a top

priority for us, which is one of the reasons why the island is in particularly high demand

amongst famous personalities from the worlds of business, culture, media and sport,” revealed

Florian Fischer. In his estimation, it is still a good opportunity to invest in a high-end resi-

dence in spite of the rising prices: “The good land plots are becoming increasingly rare, and

prices will continue to rise even further as a result. Buyers who are looking for a secure in-

vestment with potential for appreciation in value should avoid bargain-hunting in any case.”

Ibiza lifestyle is the key motivation to buy for international home buyers

The most sought-after locations include Ibiza Town, Es Cubells, Cala Jondal and Talamanca,

as well as Santa Gertrudis and San Carlos located inland. Traditional finca properties typical

for the island and contemporary villas are equally in demand as luxurious apartments and

penthouse apartments. In the absolutely prime locations, entry prices all over the island are

approximately 2 million euros. If everything is right in terms of location and appointment

standard, prices in the double-digital millions region are being paid in some exceptional cases.

“The most important motivation for acquiring a property on Ibiza is still the relaxed way of

life to be had on the island, combined with world-class entertainment, spectacular beaches and

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a vast array of recreational activities on offer. For many interested buyers, the purchase price

is of secondary importance,” said Florian Fischer. Nevertheless, buyers are not willing to ac-

cept excessively high prices. “This is due to the fact that interested clients from abroad are

very well informed about the local property market,” stressed property expert Florian Fischer.

Buyers from the German-speaking world dominate the market for holiday properties, fol-

lowed by clients from Benelux, the UK, Italy, France, Russia, and other non-EU countries. In

2013, the average age of buyers of Engel & Völkers properties was 47 years old, making Ibiza

a relatively young location.

Improved flight connections and more berths for superyachts

A number of new openings of top-class restaurants, hotels and beach clubs such as the Lío,

Nikki Beach and the Harbour Club are ensuring that the brand continues to become ever more

attractive for the global clientele. Significant developments to the island’s infrastructure are

also creating additional new incentives. Improved flight frequencies and connections, espe-

cially during the winter months, are giving a new stimulus to the market for second homes.

Private air traffic also rose once again last year by 19 percent, placing Ibiza in the Top 4 air-

ports in the whole of Europe ranked in terms of the number of private flights. With regards to

yachting too, the island is positioning itself more and more as a leading force in the Mediter-

ranean. Ibiza has made a significant impact with the redesign of its former ferry port, and

managed to create seven of the desirable boat moorings for superyachts with a length of up to

110 metres.

Outlook: Market upturn set to continue in 2014

Florian Fischer also assesses the future development of the property market positively: “We

are very optimistic for 2014 and base this view on the sustained strength of the Ibiza brand,

which is promoted both locally and globally, as well as being reinforced by many well-known

personalities. Strict building regulations will continue to make sure that the authenticity of

very large parts of the island remains a unique characteristic of Ibiza – and that top estates re-

main a rare commodity.”

Please click here for the full market report published by Engel & Völkers Ibiza:

http://www.engelvoelkers.com/wp-content/uploads/2014/03/EV-Ibiza-Market-Report-2014-

small.pdf

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For further information please contact:

ENGEL & VÖLKERS AG

Princess Wittgenstein

Head of Global Corporate Communication

Stadthausbrücke 5

20355 Hamburg

Germany

Phone: +49 40-36 13 11 20

Fax: +49 40-36 13 12 35

Bettina.Wittgenstein@engelvoelkers.com

About Engel & Völkers: Engel & Völkers is one of the world’s leading service companies specialised in the

sale and leasehold of premium residential property, commercial real estate and yachts. With its licence system,

Engel & Völkers is the only Germany-based firm to rank amongst the top 100 franchise companies in the

world.* Around 520 residential property shops specialised in high-class real estate and 50 commercial offices

brokering office, retail and industrial space, investment properties, multi-purpose apartment and office blocks

and property portfolios offer both private and institutional clients a professionally tailored range of services.

Leasing, sales, consultancy and valuations form the core competences of the staff of around 4,700 employees.

The Company is currently operating in 38 countries on five continents. Intensive training schemes in its in-house

real estate Academy and the high level of quality assurance governing its systematically structured service provi-

sion are key factors that account for the Company’s success. In 2012, Engel & Völkers was named the most val-

uable property brand in Germany in the category “Property broker” by the European Society for Real Estate

Brand Observation (EUGIMB).

* Source: Franchise Direct “Top 100 Global Franchises Ranking”