Ibiza is known for being a beautiful country with a laid-back atmosphere and vibrant and colourful markets. Although sometimes considered a party capital, there are many more things on offer on this beautiful Balearic Island; from its nature walks to its stunning beaches, Ibiza is enjoyed by tourists from all around the world.
With the amount of available land limited and increasing property demand – Ibiza makes for an ideal location for investing in property.
Along with other European party hotspots, Ibiza has been hit hard by the COVID pandemic. However, the island is hopeful and confident for the future. The pandemic has given Ibiza time to revive itself. For the first time in many years, the amount of plastic pollution on the island has been reduced, and the sea life has started to thrive once more with the emergence of more sea turtles and an abundance of fish in the sea.
The dwindling party scene during the COVID crisis will be welcoming news for some. In January 2020, the Balearics pledged a policy of “sustainable and respectful tourism”, intending to shift the tourist model and the standing of the Islands. The current situation is seen as an opportunity to consider additional ways to change the destination’s reputation and increase tourism from a range of traveller types.
In the 70s, tourists started arriving on the island attracted by the nightlife, rave music become popular in the 80s, and the 90s saw the emergence of Balearic house. Today it is the eclectic mix of music styles that continues to be popular with many who visit.
This volcanic island is also home to impressive beaches and excellent restaurants that can be found within the ancient towns. The Marina is a playground for the rich and famous, with hundreds of yachts bobbing on the glistening water.
Nowhere showcases Ibiza’s history better than The Old Town; this ancient fortress was originally built to defend against invaders. It now offers a wide variety of boutiques and eating establishments, all in a timeless setting. There is a spectacular view of the Marina and the newer districts of Ibiza Town from the top of the hill.
The summer brings the arrival of Ibiza best market. The Punta Arabi Hippy Market sells unique jewellery and hippy fashion. It is also host to food stalls and live music. This family-friendly market has a dedicated children’s area shaded by plenty of pine trees to ensure that the temperature is cool.
Other attractions that make Ibiza a perfect tourist location are, of course, its picturesque beaches. One of the most popular beaches is Salinas Beach. This long, sandy strip of coast is hosts to many beach bars and cafes. Santa Eulalia, Pou des Lleo beach offers a more relaxed atmosphere. Located 30 minutes away from Ibiza Town in a secluded cove, it is a small horseshoe-shaped cove surrounded by low red cliffs. The clear water makes it a popular destination for divers and snorkellers.
To experience Ibiza’s iconic Volcanic landscape, there is no better place to visit than the magical rock Es Vedra, located off the southwestern coast. Its solid magnetic power has meant that many associate it as being a spiritual place with many legends and myths surrounding it. Boat trips are a popular way to visit this attraction.
Our experts say
“As the demand for property in the Balearic Islands soars, foreign investors can really take the opportunity to diversify their portfolio with a wide range of investment to choose from. The area sees millions of visitors come into the island for a variety of reasons, meaning a good return on investment looks likely to continue.”
“The COVID pandemic is set to bring around change to the region. It is likely that Ibiza, known as the party capital of Europe, may not always have this reputation, with this change we may see different kinds of tourists visiting, which in turn will bring new opportunities.”
“Ibiza’s rental market is very buoyant. Prices are continuing to rise, and growing demand from tourists means rental yields are attractive.”
– Tom Haworth, Property Consultant
How to get there
Being an island, Ibiza is not accessible by road from overseas. However, there are many car rental options and taxis available to get around the island to enable you to explore.
Many countries fly direct to Aeroport d’Eivissa, which is the main airport serving the Balearic Islands. The airport is about 6km from Ibiza city centre. It is also possible to take a domestic flight from Valencia, Madrid or Barcelona on the mainland.
High-Speed ferry links between the Spanish Mainland and Ibiza have made taking a ferry to the island much quicker than it previously was. The main ports on the Island are Ibiza Town and San Antonio. Services operate from the mainland ports. Denia is the closest mainland port and travel time is around 2 hours. From Valencia, the travel time is 5 hours. The longest route is from Barcelona, which can take up to 9 hours.
The Mediterranean climate means that summers are dry. June through to August are the hottest months reaching highs of 30 degrees Celsius and lows of 22 degrees Celsius. The driest month is July which usually promises no rain at all.
The coolest month is January, with an average temperature of 16 degrees Celsius and an average low of 7 degrees Celsius. The wettest month is October, with 26 mm of rain over two days.
Whilst many come to Ibiza to party, for investors, there is a healthy profit to be made here as there is a huge demand for summer rentals offering a good return on investment. They also have excellent resale value, and rental prices and demand in the area keep soaring.
There has been a considerable increase in property prices across all of the Balearic Islands, with Ibiza coming out on top of the three municipalities.
The island has always been an attraction for all types of tourists worldwide. Each year more than 1 million tourists visit Ibiza to enjoy its beach clubs, boat and pool parties, culture and music, food and spirit festivals. Tourists mainly come from UK, USA, Holland, Germany, Belgium, France, Italy, providing a steady stream of potential holiday let income.
In recent years, there have been more than 320 million euros invested to improve the Balearic islands’ infrastructure – which includes road and sewage system, water purification plants, improvement of ports and electricity network.
VAT on properties in Spain is only 10%. Meanwhile, there are countries with VAT of 20% of the purchase price of real estate; in Spain, VAT is only 10% for newly built properties.