http://www.lucasfox.com/Property/Spain/ibiza.html

1. IBIZA
REAL ESTATE MARKET
Q1 & Q2 2013
Maxim Rettich
Director Lucas Fox Costa Brava
www.lucasfox.comIBIZA REAL ESTATE MARKET Q1 & Q2 2013
IBIZA REAL ESTATE MARKET:
OVERVIEW
• Ibiza property prices are at more than
double the Spanish average
• Lucas Fox has registered unusually high
levels of sales enquiries in the first two
quarters of 2013
• 2013 is on course to be another
record-breaking year for both sales
& rentals
• Ibiza sales prices remain steady, in
strong contrast to the Spanish average
• The demographic of clients is
changing with many more young
European buyers in the 30 to 40 year
age group
• Growing demand from non-European
clients from Russia, China and India for
both buying and renting
IBIZA REAL ESTATE MARKET:
SUMMARY
The summer months in Ibiza are
expected to see some aggressive
competition for the most desirable
properties on the market. While
property transactions have been steady
since the start of 2013, airport arrivals
in the spring months have increased on
2012 figures, and data shows that global
interest in renting and buying on Ibiza is
higher than in 2012, which itself was a
record-breaking year.
Ibiza’s changing reputation from
being solely the preserve of party-
goers to being recognized as a top
luxury Mediterranean destination has
further consolidated in 2013 with
the continuing success of high-end
restaurants and clubs such as Lìo and the
opening of Ushuaia Tower, Destino by
Pacha, and Sacca.
The island is increasingly attracting
international travellers looking for a
Mediterranean paradise with crystal clear
waters, untouched natural wilderness,
high levels of safety and security,
luxury boutiques and fine dining.
Yachting marinas, golf courses, horse-
riding and pristine beaches provide
a full complement of activities and
recreational opportunities alongside the
internationally renowned nightlife and
exquisite restaurant culture.
It seems that buying or
renting a home on Ibiza was
on everyone’s New Year’s
resolution list this year…
from the start of the year,
people have been keen to
find out more about the
best properties in the most
exclusive locations on
the island.
More international hotel
groups are looking at Ibiza
as a potential destination
for their businesses and
we believe that the coming
years will see another rise
in the level of the island’s
tourism sector with more
and more focus on high
end tourism.

2. www.lucasfox.comIBIZA REAL ESTATE MARKET Q1 & Q2 2013
Property Sales Transactions: Ibiza and Spain: 2012 – 2013 / Source: ine.es
Global internet search interest for “Ibiza villas” 2012 – June 2013
Source: Google Trends
“So far in 2013 we have seen much
higher levels of buyer interest than in
2012 – which was our busiest year
to date”, comments Maxim Rettich,
Director of Lucas Fox Ibiza. “This is
partly down to our growing reputation
and position on the island. Also the new
law that will grant residency permits to
those interested in investing in high-end
properties is particularly attractive to
Russian and Chinese buyers who have
been keeping a close eye on newly listed
villas and apartment developments on
the island.”
PROPERTY TRANSACTIONS
The Ibiza property market is driven by a
separate set of factors than other local
Spanish property markets, although
it does follow some national trends.
Overall, the past twelve months have
seen a steadier level of trading in
Ibiza than observed nationally. Both
Ibiza - and Spain more widely - saw
a rise in property transactions at the
end of last year as sale/purchases
aimed at avoiding end of year taxes
are transacted, and these sales tend to
continue showing up in January data.
Apart from this seasonal bump, property
sales in Ibiza have followed the normal
pattern, slowing in the winter months.
The continued level of sales activity
is reflected in global Google search
trends for Ibiza villas. As is typically the
case, search interest in Ibiza peaks in
the summer months and tends to wane
between October and the end of the
year. What has been interesting in 2013
is the sudden rise in interest from the
very start of the year.
“It seems that buying or renting a home
on Ibiza was on everyone’s New Year’s
resolution list this year,” adds Rettich
“While we did see a drop in clients
actually viewing properties in January
and February, this wasn’t matched with
the level of enquiries. From the start of
the year, people have been keen to find
out more about the best properties in the
most exclusive locations on the island.”
IBIZA PROPERTY SALES PRICES
Ibiza property prices have remained
mostly steady for the past year, with a
slight dip in the 2012/3 winter months
after a rise in averages in the capital
Eivissa last year.
As at the end of June 2013, average
property prices in Eivissa held at €2,851
per square metre according to web
property portal, Idealista. The steadiness
of Ibiza’s property prices is in strong
contrast with the Spanish average, which
continued to fall in the first half of 2013,
trading at an average of €1,064 per
square metre less than the Ibiza average.
IBIZA RENTAL MARKET
Despite a slower start in 2013 than in
the winter months of 2011 and 2012,
Ibiza remains an incredibly popular
destination for world travellers. While
first quarter airport arrivals were lower
than in the past two years, the spring
months saw an increase in arrivals over
previous years, registering a growth of
4.3% in tourist arrivals over the first half
of 2012, which in itself was a record-
topping year. This is in stark contrast with
the rest of Spain, which averaged a 5.9%
country-wide decrease in airport arrivals.
According to the Spanish Tourism
Data agency Frontur, in the first half of
2013, 26.1 million tourists visited Spain
overall, an increase of 4.2% over last
year. The Balearic Islands (including
Ibiza) and Catalunya were the principal
destinations for the majority of tourists.
FOREIGN INVESTMENT INTEREST
The Lucas Fox website saw an increase of
64.15% in visitors viewing Ibiza property
pages in the first half of 2013.

3. www.lucasfox.com
€ per Square Meter
1200
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
900
600
300
0
2011 2012 2013
Ibiza Airport Arrivals (‘000s):
2011 – Q 2 2013 / Source: Aena.es
Ibiza remains a popular investment
choice for high-end buyers from the UK,
France, United States, the Netherlands,
Germany and Switzerland. The first
half of 2013 has seen a huge growth
in interest from Russian, Chinese,
Indian and Brazilian residents, and
from Scandinavian countries including
Sweden, Denmark and Norway. Lucas
Fox has also seen more interest from
European buyers within the 30-40 year
old age group.
LUCAS FOX ANALYSIS AND
PREDICTIONS
“We expect to see very brisk trading in
luxury Ibiza properties in the last two
quarters of 2013,” predicts Lucas Fox
Ibiza Director Maxim Rettich.
“As always it is difficult to get a very
accurate feel for the development of sales
prices on Ibiza due to the continuing gap
between sales and asking prices and the
multitude of objective factors involved
in deciding on a luxury purchase on the
island. We expect that a number of new
villa developments planned for the next
few years will put increasing pressure
on sellers to take a realistic approach to
pricing.”
“More international hotel groups are
looking at Ibiza as a potential destination
for their businesses and we believe that the
coming years will see another rise in the
level of the island’s tourism sector with more
and more focus on high end tourism.”
“So far, 2013 has been a chance for us at
Lucas Fox to consolidate our reputation
as the number one international agency
in Ibiza,” adds Lucas Fox co-founder
Alexander Vaughan “We are currently
registering as many as 20 interested
clients a day through our Residency in
Spain joint venture with Spanish law
firm ECIJA. We expect there to be a huge
spike in demand from non European
buyers when the new residency law
comes into force”
International Visitors to Lucas Fox
webpages for Ibiza property Q1 – Q2 2013
Source: Google Analytics for
Lucas Fox website
Ibiza Average Property Sales Prices Q3 2010 – Q2 2013
Source: Fotocasa.es, Idealista.com
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Alexander Vaughan
Founding Partner
Maxim Rettich
Director Lucas Fox Ibiza
For more information contact us:
E info@lucasfox.com / T (+34) 933 562 989
www.lucasfox.com