Balearics Lead Recovery In Property Sales
The Balearics are showing the largest upward trend in Spanish property sales, with agencies in key areas such as Ibiza, Marbella and Valencia reporting an increase of some 39% on the islands, compared to 28% in the major cities. Traditional, British market areas such as the Costa Blanca and Costa Del Sol have seen a somewhat lower increase in demand which could possibly be attributed to a change in buyer demographic from pensioners and second home owners to British citizens disillusioned by the UK’s decision to leave the EU. Research by the London School Of Economics has shown that some 10% of ‘Remain’ voters, largely aged between 18 and 25 years, are now seeking homes and jobs in major Spanish cities as the local economy recovers. The market is also aided by an influx of ex-British owned, Spanish properties, as UK sellers attempt to take advantage of the enhanced value of the euro against the pound. New-builds are becoming hugely popular as projects, started before the financial downturn, are finally being finished. Despite the weakening of the pound, Spanish property still represents good value to British investors with prices down 30-35% on their 2007 peak. Interest from the UK diminished slightly in the immediate aftermath of the Brexit vote, but has since recovered, whilst high-end properties have always been more popular with other nationalities and have successfully maintained their global appeal.
Government Pledge Aid To New Projects
This month the Consell of Ibiza announced subsidies amounting to 148,000€ for island-wide projects. The payments are to be divided into two phases to assist in environmental and cultural sustainability, education, sports, youth services and activities throughout 2016. The initial grant will be of 48,000€ to be used for the promotion of heritage and culture. There is no specific provision for musical events or performances but the council will accept bids for consideration between the 3rd August and 22nd August. Grants will be provided to projects that, in its opinion, demonstrate the effective promotion of the island’s diverse culture. Meanwhile Santa Eulalia town council has credited it’s: ‘careful planning and good management’ with the creation of a budget surplus amounting to 3.17m euros, which will be used to improve infrastructure and road safety. Specific areas of enhancement include Cala Llenya, Can Ramon and Sa Font.
Changing Face Of Tourism in Ibiza
August is, traditionally the busiest month of the year for Ibiza, and bookings in 2016 are a testament to that truth, but the market is changing. The season is starting earlier and hotels recognising this fact are finding themselves fully occupied in April. Restaurants and clubs are open out of seaason and winter 2015/16 was the busiest for a long time. The choice is no longer restricted to Ibiza town as Agroturismo (country boutique) hotels buck the trend of closing for the winter. The high-end rental market is flourishing, year-round, and a demand for villa accommodation has led to a substantial increase in potential yield for proprietors. A short hop from Barcelona, which has daily flights from many European countries, Ibiza enjoys a singularly pleasant winter climate, being the southern-most island of the Balearics. With stunning scenery, clement weather and a wealth of amenities, it seems that the island of Ibiza will become ever more desirable to would-be investors in years to come.
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