International demand for property in Ibiza, Spain, is set to “explode” over the next five years, says a leading Spanish agent. Regional directors at leading independent real estate agency, Lucas Fox International Properties, predict that 2016 is likely to be a positive one for the country’s real estate sector, following several years of downturns. But now the market recovery is well underway and gaining momentum, local buyers are returning to the market, unemployment continues to fall and the economy is set to be the fastest growing of the “Big Four” euro economies over the next two years, according to the International Monetary Fund. Jason Ham, Head of Business Development is particularly upbeat about Ibiza’s property market in 2016. “The next five years is going to see demand for the luxury Ibiza brand explode worldwide, in America, Asia and the Middle East. With the new Super Port due for completion in the next year or so, with luxury designer shops finally hitting Ibiza, and more five-star hotels opening (such as the iconic Hotel Montesol becoming a 36-room exclusive Hilton Hotel next year), the island is only going one way – up! “The luxury market here is shooting property rental prices through the roof, which will have a consequential knock on effect on the demand for and prices of the villas in the upper end of the market, and this will be throughout the island, not just in the traditional big villa hotspots in the South West.” Karen Storms, Sales Manager of Lucas Fox Barcelona says, “I picture 2016 ending on a positive note for Lucas Fox Barcelona. Prime areas are continuing to perform extremely well with particularly strong results for new developments. “Perhaps even more encouraging for the Spanish property market as a whole are the signs that prices in Barcelona have stabilized and are beginning to slowly increase. In all of these locations the improving market conditions are being driven by increasing levels of confidence amongst national buyers, something that is crucial for the market’s long term recovery. “With an economy performing beyond forecasters’ expectations and unemployment down, we expect to see significant movement over the next 12 months in Barcelona as both international and national investors make the most of a unique combination of factors in one of Europe’s most desirable property hotspots.” Tom Maidment, Partner of Lucas Fox Costa Brava agrees the outlook for 2016 is looking good. “We expect the market to attract ever greater numbers of international buyers as property prices remain low and the Spanish economy continues its recovery. We are also likely to see even greater numbers of national buyers returning to the market so, overall, demand will continue to rise.” It’s a similar story on the Maresme Coast in 2016, he says. “Property prices have dropped by around 40% since the peak of the market and there are some interesting opportunities for buyers looking to invest in the region. It is now possible, for example, to acquire re-sale properties requiring renovation in Can Teixido – Alella’s most sought-after residential estate – for around €1million. This would have been unthinkable just a few years ago. “If the local market continues its resurgence at the same pace as we have seen throughout 2015, then expect to see sales volumes rise once again in the Maresme in 2016. Well priced properties in prime locations in the €500,000-€800,000 price bracket should sell quickly as demand increases and as competition amongst local and international buyers further stimulates market activity.” Rachel Haslam, Director of Lucas Fox Sitges, also has a positive outlook for 2016. “This year has been a positive move out of the crisis and buyers´ confidence is growing. There is quite a bit of development going on in Sitges at the moment which is always a positive sign.” Juan Luis Herrero, Director of Lucas Fox Valencia says, “As the real estate sector is sensitive to economic confidence and the evolution of economic data, all indicators point to a positive year ahead. 2016 is set to be a very good year for the real estate sector in general, continuing the upward trends we have seen in the growing number of sales transactions and even a small upturn in prices by around 3-4%. It is also expected that for the first time since 2008, construction of new homes will recommence in the city.” Rod Jamieson, Director of Lucas Fox Madrid is very optimistic that international buyer demand will grow in 2016. “Madrid is an underdeveloped market that has only had international exposure in the last couple of years. Madrid can be compared to a hidden gem still to be discovered and as time is progressing, more and more people are learning about the wonders the city has to offer. “It is rare to find a place in the world that has the combination of opportunistic economic indicators along with exceptional lifestyle conditions. To maintain growth and satisfy the demand, we hope to see more new development/renovation projects become available on the market in the upcoming months. “Providing the upcoming national elections do not result in radical changes in policy. I think Madrid will continue to be an attractive place to invest for both the national and international investors for the years to come.” Stephen Lahiri, Director of Lucas Fox Marbella concludes, “The outlook for 2016 continues to look very promising for Marbella, and, with the increasing shortage of quality properties, we expect prices to continue to slowly increase. We predict that the biggest growth will be in areas surrounding close to Marbella such as Estepona and Mijas Costa where the new projects offer greater value for money.” The main picture, taken by Forb van Matt, is from FreeImages.com.
According to Lucas Fox Sitges , a lending Spanish agent, property in Ibiza is set to "explode" over several years due to international demand. Following several years of downturns, the market economy is now in recovery and gaining momentum as local buyers return to the market. The new Maresme is due to complete in the next year or so and the island is set to receive several designer shops and five -star hotels, which will help attract potential investors to the island. Signs of stability emerged in Spain 's property market as well.