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REAL ESTATE MARKET Q3 & Q4 2013

The amazing yields IBIZA MARKET REPORT The South West and San Jose areas of Ibiza continue to be the most desirable being generated from • Lucas Fox enjoyed its most successful amongst international buyers. summertime rental rates, year to date in 2013, ending the year with several major high value sales, ensuring In 2013, Ibiza was one of the strongest the magnificent weather, the company’s healthiest sales revenue property markets in , with a healthy and the safety and since it was founded 9 years ago and transaction pace compared with the rest indicating another busy year ahead. of Spain, and a levelling off of property accessibility of the island prices in the second half of 2013. • The prime Ibiza residential property are building its reputation market is still being driven by international With the introduction of the Golden Visa clients who are attracted by lower for long-term investment Spanish residency permit law, Ibiza is sales prices. value amongst foreign now seeing increased interest from new markets, particularly amongst Asian and buyers. We have also seen a • This interest from international buyers has also been driven by the new Chinese buyers. growing number of family Residency Law which enables non-EU While the majority of buyers are from buyers attracted to the buyers to acquire residency via property investments over €500,000. the UK, 2013 saw an increasing number North of the island and the of buyers from Israel and the US, as well • In 2013, Spain became the third most as maintaining the of purchasing surrounding villages popular tourist destination in the world, amongst European buyers particularly with over 60 million visitors visiting the Dutch. The greatest growth markets for country over the course of the year.The enquiries and property viewings came Amanda Martí attracted 18.3% of the from the Asia/Chinese market. Director Lucas Fox Ibiza total, the second highest tourist numbers after Catalonia The majority of buyers are seeking a holiday home or are balancing use of • Across 2013, average sales prices their property for rental investment and for luxury properties on Ibiza averaged personal use over the extended summer €1.16 million period. SUMMARY Tourism to Ibiza continues to grow each year, with 3.1% growth in passenger arrivals Property prices continue to be heavily in 2013 compared to 2012 figures. discounted across the market, with average prices 30% lower than during the Sales of Balearic properties (which peak 2007 trading period. include Ibiza) rose slightly across the summer months, with a more

IBIZA REAL ESTATE MARKET Q3 & Q4 2013 www.lucasfox.com Property sales transactions, Peak 2007 compared with Q3 2012 – Q 4 2013 Buyer motivations for Ibiza prime market Source: Ine.es properties, 2013 Source: Lucas Fox sales data

pronounced trend in sales trading than of these tourists who are increasingly was observable for the Spanish market becoming investors in the island. 2011 2012 2013 overall. In Q3 and Q4 2013, all of the

Balearic Islands (which includes Ibiza) ANALYSIS AND FORECAST 1200 averaged 614 property sales per month. “We expect 2014 to build on the 900 strengthening property demand we saw In line with the lifestyle value of Ibiza, at 600 least half of all prime market buyers were in the second half of 2013”, says Amanda looking to use the property themselves Martí Director of Lucas Fox Ibiza. “Prices 300 are stabilizing and with the introduction of the new residency permits, there 0 as a second home or holiday property. Jan Mar May Jul Sept Nov is increased competition for the best Feb Apr Jun Aug Oct Dec The majority of prime market property properties on the island. buyers in Ibiza came from the UK and European countries (predominantly The amazing yields being generated Passenger arrivals to (000s), , Belgium, the and from summertime rental rates, the 2011 - 2013 ), with the rest of the buyers split magnificent weather, and the safety and Source: Aena.es equally between Russia, the Middle East accessibility of the island are building its and the US. We believe Asian buyers will reputation for long-term investment value start to influence these figures in 2014. amongst foreign buyers. We have also seen a growing number of family buyers Ibiza has a robust and continually attracted to the North of the island and growing high-end tourist economy, the surrounding villages ( such as Santa with many visitors beginning a lifelong Gertrudis, San Juan, and Carles) and we relationship with the island, that sees expect this trend to continue in 2014. them return regularly over many years. New-build designer villas, first-line As a result, not only does strong tourism mansions and seafront properties, and growth continue (with Ibiza airport again classic country houses (or fincas) will topping the 5 million passenger mark in continue to be the most sought-after 2013), but so does the purchasing power properties on the island in 2014.”

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For more information contact us: E [email protected] / T (+34) 933 562 989 Amanda Martí Maxim Rettich www.lucasfox.com Director Lucas Fox Ibiza Partner