Is it a good time to invest in housing in Ibiza?

If you are thinking of buying a house in Ibiza as an investment this year 2021 this article is of interest to you. We share some reflections to help you weigh up your decision to invest in housing in Ibiza.

At the moment, having capital and not getting a return on it is a very common situation. There is no type of investment that guarantees you a minimum interest. 

But what about buying and selling properties in 2021, is it profitable and is it, in short, a good time to invest in the purchase of a house in Ibiza?

COVID effect: investment opportunities

As reported by the Instituto de Valoraciones (a valuation society approved by the Bank of Spain), the coronavirus pandemic is having a direct effect on the property market.

Due to the instability, uncertainty, and the health crisis, ... some owners are being forced to get rid of their properties in order to obtain liquidity. 

Supply and demand in the real estate market

We already commented in our blog that foreigners are still interested in buying houses in Ibiza and that the island is among the list of cities where it is advisable to invest this decade.

The demand seems to be on the rise and in fact, in general, the price of new homes has risen.

This trend has continued despite the coronavirus, so investing in a property is still the "refuge value" chosen by many people.

Profitability versus liquidity

History has shown us that, while a property investment is considered one of the least liquid, it is also one of the best at recovering after crises.

If the risk factor is making you doubt whether it is a good time to invest in housing in Ibiza, you should know that it is one of the least risky options.

At the end of the day, as pointed out by the specialised media euribor.com.es, "home is... home, an essential asset that someone will always find useful".

New housing: a safe value?

A few months ago, Pablo Rodríguez Losada, Sales and Marketing Director of AEDAS Homes, analysed the trend in the new-build housing market.

In the opinion article published in elEconomista.es, the expert commented that "the global health crisis of the COVID-19 has completely altered the investment board for all actors", but that nevertheless "there is an asset that historically holds up as a refuge value: housing. And, especially, new construction housing"

Rodríguez also points out that "the current production of new housing is lower than the structural demand". To be more specific, according to the INE, 92,862 sales were made in 2019, "compared to the 120,000 units required by the market".

Young people will continue to buy houses despite COVID-19

"Seven out of ten young Spaniards intend to buy their first home despite the pandemic". This statement, taken from the study 'Youth and Housing 2020' carried out by AEDAS Homes, is quite representative of the intentions of young people when it comes to buying a house.

The study highlights, as reported in habitaclia, that "more than 69% of respondents who are looking for their first home have indicated that the second wave of the pandemic has not paralyzed their intentions to buy it".

One more factor to take into account when considering whether to buy a house in Ibiza as an investment or not.

Real estate consulting in Ibiza

If you still have doubts hanging over your head or need the advice of a professional such as the real estate agents that comprise Ibiza Country Villas, contact us!

We will be happy to serve you with the utmost professionalism, honesty and transparency. After all, these are the hallmarks of our real estate agency.