Is It A Good Idea To Purchase A Property In Ibiza In 2024?

If you're thinking of buying a property in a soul-soothing serene location, then Ibiza will always be a good idea. But before you even consider investing in a property in Ibiza, you must understand the real estate market of Spain, the laws governing rentals, and the legalities of property development.

After the shocks of Corona, when economies were falling apart, the destination place in the Balearic Islands flourished. A high rise in property demand was seen, mainly due to the alteration in the public market and changes in lifestyles.

Currently, Spain is one of those countries in Europe that is experiencing high growth and development. However, you cannot completely ignore the other prevailing factors like inflation and pandemic that can affect your decision to buy property in Ibiza.

When it comes to investment, assessing your options and prospects is better. Just because a property is out for sale at a reasonable price doesn't mean it will be a good investment for you. In addition, there are some laws that govern the tourist rentals market, for which you need to ensure that the property you're interested in buying is completely legal.

In-Advance Investment vs. Newly Built Property Investment

Buying a new house when it's being built is an efficient way of purchasing a property. Especially when it is available on an island like Ibiza, you don't want to take the risk of losing it.

Prices of newly-built properties hike up after they are completed. So, investing in advance when they are being constructed could turn out profitable. You might get lucky by buying it at low prices.

Many researchers say that the profit margin of buying a property in advance in Ibiza is up to 3-6%, excluding the appreciation value in the future. But the property's location is equally important when discussing its value.

Property Market Structure of Spain in Past Years

The post-pandemic years were the consolidation era in the property market. After that, a high property price rise was seen, which is expected to continue for the next 5-10 years.

The real estate market in Spain skyrocketed by the end of 2021 when the properties were selling like hotcakes.

As the market rule says, 'higher the demand, higher the prices.'

Property prices in Spain rose and reached their highest peak at the beginning of 2022. But on the other hand, the real estate sector rejoices some fruitful years due to the high demand for property buying.

Is the New Housing Law in Spain Going to Affect Your Investment?

By the end of 2022, the council minister of the Spanish Government will approve the new housing law. The new rules proposed a couple of measures that will affect the property investors, homeowners, and agents working in the real estate sector to some extent.

These proposed measures include:

• Allocation of 30% of new buildings and developments to VPO (social housing)
• Income tax for small-scale landowners
• IBI surcharge for vacant properties

But a transition period of 18 months will be observed till the implementation of regulations. This will delay the execution of the law until the end of 2023.

Should You Invest in Property Buying in 2022?

Despite the economic crisis in the past years, buying a property in current times could still be a good decision for those who are willing to invest in Ibiza luxury property.

We'd say buying a house is the safest asset you can have, and when it is in one of your most desired places, then why not?

If the property demand continues to increase in the market, you can have a higher value of your property in the future. Besides, many property market researchers also believe it is a good time to invest in a property because of a high liquidity ratio and low-interest rates. Plus, the anticipated inflation and rise in future prices are some of the other factors due to which it would be a good idea if you buy a property in Ibiza in 2022.

If you're interested in consulting a real estate agent in Ibiza to discuss the current property market and investment opportunities, then you know who to contact.

Contact HOY HOY IBIZA today. We'd be happy to connect you to our estate partners on the Island.