The Spanish real estate market has several places that stand out thanks to particular characteristics. Ibiza is one of the prime examples of a real estate microclimate. Although the White Island is well-known for its international reputation as a holiday paradise, it is also considered a top location by second-home buyers worldwide (especially from the European and Nordic countries). Its landscapes, climate, and air connections to the rest of Europe make Ibiza a favorite holiday destination for celebrities and millionaires.
Ibizan real estate has, therefore, a clear target among luxury home buyers. One only has to look at the price of homes in the principal municipality on the island, where the average price per square meter was 5,511 euros in January 2022. This figure is only surpassed by the municipality of San Sebastian, comfortably exceeding the average of the Balearic Islands, which tops the ranking of autonomous communities.
Despite the great interest of the international public in the island, the national buyer still leads the ranking. During this summer, it increased second-home sales by Spanish customers and promoted the Ibizan real estate market. To this national increase must be added the growing interest of German, British, French, Belgian, and Italian buyers in Mediterranean coastal areas such as the Costa del Sol, the Costa Brava, or the Balearic Islands.
Purchase vs. Renting
Added to the recovery of post-pandemic mobility and the resulting increase in interest in buying second homes, we must also consider the effects of inflation. Central banks are raising interest rates, leading to the expectation that mortgage conditions will tighten, encouraging home buying vs. renting.
These factors led to an increase in the demand for housing in the Balearic Islands, a region with a scarce supply of residential properties. The excess demand causes a price increase in the Balearic real estate market, which has reached record prices since 2007.
The Bizkaiurban project
The Balearic Islands, especially Ibiza, are a great business opportunity for real estate companies such as Bizkaiurban. The developer, boasting an important track record of developments, is currently immersed in the Ibiza Development Project. This project consists of the acquisition of a plot of land in Port de San Miquel (in the north of the island) to build 16 luxury homes, 32 parking spaces, and 16 storage rooms.
These luxury homes will have four floors. The basement will have, among others, a garage, a swimming pool, and a gymnasium. The first floor will have a living room, dining room, and kitchen, while the second floor will be used for bedrooms. Finally, the top floor will include a Jacuzzi. In addition, clients will be offered an interior design service to decorate the homes according to their interests and tastes.
The importance of real estate crowdfunding
Although the Ibizan real estate market is experiencing a positive period, developers, as our Real Estate Director Jorge Estévez points out, are starting to feel helpless in the traditional banking model. For this reason, they are turning to alternative financing formulas. Here is where real estate crowdfunding comes in!
Fellow Funders Real Estate already has a dozen real estate projects financed or in the process of financing. Today, we announce our thirteenth round of these characteristics, moving for the first time to Ibiza! This round aims to raise 1,450,000 € for the Bizkaiurban project.
Get to know the project!
The Ibiza Development Project is especially attractive for its profitability (around 58% in a moderate scenario, with an estimated return period of 36 months). But above all, it is attractive for its real estate “microclimate” that currently shows very favorable signs, as is the case of Ibiza. Do you want to know more about the project and the round? Visit our platform now!