Invest in Ibiza?

30 June 2010

Demand  for properties in Ibiza continues to grow and the amount of construction work clearly reflects this.

Over the last 10 years we have been witnessing a new phenomenon: first time buyers not able to afford high prices seen in big European Capitals started buying in Ibiza, where housing is still affordable.  With increasing amount of interest - property valuation keeps increasing and prices have soared by just under 50% in the last 3 summers up to 2008.

This small island became famous due to a vast number of dance clubs and was usually associated only with attractive nightlife.  In the last few years more and more Europeans view this destination as a wonderful holiday home location or a perfect place to retire. With its sandy beaches surrounded by mountainous landscape this island managed to attract many foreigners offering them warm winters and hot summers.

Ibiza is competing with its bigger sister - Mallorca by investing in excellent education system and providing fantastic health service. These efforts are due to make a relocation from the mainland less stressful and as easy as possible.

Poor performance of pension funds made a lot of people reconsider their options and with the increasing amount of golf courses, restaurants on the island as well as big number of budget direct flights Ibiza is an extremely good place to buy for rental or investment purposes. The property market in the balearics is mature and is going strong in comparison with mainland Spain for both apartments and villas. The size of the island has a big impact on the market itself. Investors love close proximity to the coastline as well as short distance to the airport regardless of the location.

To sum up, particularly with the weakening euro against the pound and recent house price decreases caused by market turmoil, Ibiza remains an ideal choice to invest in property in Europe.

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