Island Insight: The State of Luxury Real Estate in Ibiza and Mallorca
The Spanish islands of Mallorca and Ibiza, Forbes recently declared, should be “top of your post-pandemic bucket list.” The resort destinations are renowned for sun, powder-sand beaches, and attracting a host of celebrity visitors. And while both islands—but Ibiza in particular—have reputations for being home to a wild party scene, they have much more to offer. Not least striking mountain scenery on Mallorca; beautiful natural surroundings, and a slower pace of life in provincial Ibiza; and excellent real estate opportunities on both.
“People who choose to live here, come because it’s considered a paradise and they feel lucky to know this beautiful island,” says Sandra Tejero Estévez, General Manager of Estela Exclusive Homes in Ibiza. Here, she and Andrea Berchtold, Executive Manager and Partner of Luxury Estates Mallorca, share their insights into the real estate market in the region. Read on for the trends to know about, investment opportunities to look out for and predictions for 2022 and beyond.
The Lifestyle Factor
In a world that’s been reshaped by the pandemic, and where many homebuyers can now choose to work from anywhere, the lifestyle offered by the Balearic Islands is increasingly appealing.
Mallorca holds unique allure as a sustainability trailblazer, fast becoming famous for its organic agriculture and top-notch farm-to-table dining. There’s also a wealth of outdoor activities on offer, with more than 200 beaches to bathe on; olive groves, wineries, and citrus farms to visit; and hiking, climbing, and canyoning through the Tramuntana mountains to enjoy. The cosmopolitan capital, Palma, is a history buff’s dream and was previously named the “best city in the world to live” by the Financial Times.
“The desire to invest in property has been overwhelming here,” Berchtold says. “People want to buy into the lifestyle and have a safe haven to go to, should things get rough again.” As such, she says, there’s been a surge in demand for second or third homes, as “people have realized that they can install their families here and commute back to their home countries much less than before.” She adds that this increased interest has meant that 2021 was “one of the best years ever” for the real estate market in Mallorca.
Similarly, Ibiza provides potential buyers with an unexpected, and much in demand, slice of serenity—particularly after the summer partygoers have left. The island offers picturesque rural towns, beautifully restored farmhouses, and beaches and remote rocky coves in abundance. It’s also a haven for walking, riding, and swimming in crystal-clear seas.
“Many people come here because they want to work from the living room watching the ocean or see the sunrise from their homes before turning on the computer,” says Tejero Estévez, who also reports a bumper performance even during the pandemic. “We’ve seen many more affluent buyers, with a much clearer understanding of the market and what they want,” she explains.
When it comes to investment on the islands, both agents point to refurbishing older properties as a sound way to spend your money.*
In Ibiza, Tejero Estévez says, the changing real estate laws on the island can work to a buyer’s benefit. She believes that restoring a property for the holiday market can be especially lucrative as “right now the government has assigned special importance to houses or ruins larger than 3,320 square feet (300 sq m), as well as homes with old tourist licenses.”
However, she cautions that the knowledge of a property insider is vital. “As new legal changes appear and new niches and opportunities open up, you have to know how to identify and understand them,” she explains.
2022 and Beyond
Both agents share a cautiously optimistic outlook for the coming year. “While the appetite for real estate is high, the market in Mallorca has slowed down due to low inventory and we’re urgently recruiting listings to satisfy demand in the coming year,” Berchtold says.
Tejero Estévez is slightly more wary of making predictions. “Ibiza is a fantastic destination for its location—just one to two hours by plane from the most important points in Europe, and our clients love it. Although it’s not possible to make a forecast, as this market is unique, we hope that 2022 will be the same or even better than 2021.”
This story originally appeared on Luxury Defined by Christie’s International Real Estate.