TINSA report 'Housing on the Coast 2021': the market in Ibiza
TINSA publishes a detailed report on housing in coastal areas of Spain this year 2021. We share the data of the real estate market in Ibiza and Formentera.
The document includes statistics from the municipalities of Sant Joan de Labritja, Santa Eulalia del Río, Eivissa, Sant Josep de sa Talaia, Sant Antoni de Portmany and Formentera.
General situation
The activity has been maintained. The market has presented different behaviour according to segments. The demand for detached homes for sale or long-term rental has increased, holiday rentals have decreased as tourists have been unable to travel, and holiday homes in blocks or townhouses have experienced a standstill in sales attributable to operational restrictions in general and mobility restrictions, with the expectation of a recovery in the coming months.
Prices
Slight increases have been recorded, more pronounced in detached houses than in developments. New-build prices have risen and second-hand holiday home prices have stabilised. Trends are different for first and second homes. New first homes have seen prices moderate in the last three years and remain unchanged in the last year. Moderate price decreases are recorded in second-hand primary residences, depending on quality and age. Holiday rental housing has seen prices fall in the last 12 months by around 10 %.
Standard multi-family holiday homes
The typical product registers values between 3,000 and 4,000 €/m2, with a surface area from 50 m2 to 140 m2 and a functional programme of one to three bedrooms. There are homes that are more than 30 years old with very simple original qualities, others that have been refurbished, as well as new homes with high qualities and construction costs of more than 1,800 €/m2.
Typical single-family holiday homes
The typical product registers values between 6,000 and 7,000 €/m2.
Most expensive multi-family holiday home
The most expensive location registered values between 10,000 and 20,000 €/m2 for a multi-family property. This product is located on Ibiza's seafront on the front line of the marina. Homes of 100 to 200 m2, from 2 to 4 bedrooms, reaching the maximum in penthouses with terraces and views which are offered for over 4,000,000 €.
Most expensive single-family holiday home
The most expensive location registered values between €12,000 and €15,000/m2 for a single-family home. This product is located on the west coast of the island of Ibiza in the municipality of Sant Josep and around Ibiza in the neighbouring municipality of Santa Eulalia. Surface areas of around 400-500 m2, new or recently renovated properties of excellent quality with construction costs of over €3,000/m2.
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Supply
The second-hand product is predominant and sales have stagnated, with two different types of behaviour. Single-family homes have continued to sell, but developments have registered a slowdown in sales. The supply of holiday rental housing has decreased because homes are being withdrawn from the market. A significant number of properties are vacant and on offer, awaiting the resumption of travel and the return of customers. The existing stock is very small, concentrated in San Antonio Bay.
Development activity
New projects are underway in the following volumes. Ibiza 100-150 homes, Santa Eulalia 100-150 homes, San Antonio 50-100 homes, Portinatx, Sant Joan 40-50 homes and smaller numbers in other locations. On the other hand, developments have been suspended in Ibiza and surrounding areas, such as San Antonio and the bay, and Santa Eulalia del Río, pending a return of investor confidence. The predominant new construction product consists of high quality detached homes, 2-3 bedrooms and surface areas ranging from 80-120 m2.
The construction initiative is being taken by local developers, with a gradual increase in the presence of national developers. Urban planning is at a standstill. Urban planning regulations are expected to be approved within a year for two of the six municipalities in the area and, in the medium term, for a third.
Demand
Holiday home buyers on the island are mainly foreigners. The most common are British, Italian and Central European (France-Belgium-Netherlands-Germany). The minority of national buyers come from Madrid, Barcelona and Valencia. Preferences remain unchanged, with acceptance of the existing product. Both demands have slightly decreased during the last months even with a recovery during 2021. There are cases of promotions that notify a notable activity of interested parties via the web who postpone the purchase decision until they can come to the islands and see the product.
