Ibiza August Sales Increase.
August saw a 19% increase in the sales of properties throughout the Baleares when compared to the same month last year.
In total 657 transactions took place on the islands whilst the average for all of Spain showed a 1,1% drop with the total being 23,525 properties of various types changing hands. Despite the August drop across Spain, figures for the 3rd quarter are up, but the year down, highlighting the fragility of the market.
3rd Quarter Up, Annual Down.
Newly released statistics from the Government’s Department of Public Works have revealed that the number of property sales increased by 12.1% in the 3rd trimester. A total of 91,338 purchases were completed between July 1st and September 30th 2014, which equals the same period sales levels of 2010.
Despite a positive third quarter the annual figure released for the period July 2013 to June 2014 is still in the negative with sales 2.6% down on the same period from the year before.
The Balearics is one of only five of Spain’s autonomous regions to record an annual increase, though it falls way behind those of the Canaries and Madrid:
- Canary Islands +12.2%
- Madrid +9%
- Cataluña +2.6%
- Balearic Islands +2.4%
- Navarra +0.6%
The other 12 regions record a reduction in sales ranging all the way up to –17.6% in Asturias.
Sales to Foreigners.
Properties purchased by foreign residents reached a new record with 14,952 sales in the quarter—20% higher than for the same quarter of 2013, and the 12th consecutive quarterly rise in sales to foreign residents.
the number of transactions.
Foreign non-residents purchased 1,202 homes up 13.7% from 2013.
The total number of properties sales to all foreigners rose by 17.7% and totalled 16,154 homes.
Ibiza Town & Santa Eularia Most Expensive In Baleares.
Ibiza Town and Santa Eularia are the most expensive towns (centres of population over 25,000) to buy property in the Baleares.
Whilst property prices have fallen in other urban areas of the islands, prices in the two biggest urban areas on Ibiza have increased. A property in Ibiza Town is valued at around 2,350€ per m2 and in Santa Eulalia at 2,311€ per m2. Conversely Palma city prices have dropped to 1,445€ per m2.
Defying trends throughout most of Spain, as the year progresses the property prices in these two Ibizan urban areas are increasing by 2,5% in Ibiza Town and 0,5% in Santa Eulalia.
The only other urban centre in the Baleares which reaches the 2000€ per m2 price level is Calvià in Mallorca.
Renting on a budget? Try Milanuncios
All of the big property portals (fotocasa, piso, idealista etc.) offer rental properties in Ibiza, but you will find the majority are through rental agents who typically charge a month’s rent as their fee, plus you’ll need a month deposit and the first month’s rent. They need to earn a living but if your budget can’t stretch to it try this website which has a far higher proportion of properties offered directly by Landlords so no extra fee involved. The website is not exactly cutting edge and takes some getting used to, but it is ok once you get your head round it. You can select to search only for properties offered direct by Landlords—select ‘ver solo particulares’.
Buying in Spain—Key Facts.
- Taxes and fees are much higher in Spain than the UK.
- The lending ratio Banks will fund by mortgage is generally lower than in the UK.
- You need to allow approximately 12% of the property value to cover taxes & fees.
- The maximum percentage most banks will lend is 80%.
- A 200,000€ property would incur around 24,000€ in tax and fees.
- Banks would lend a maximum 160,000€ of the 200,000€ value.
- You would need to have the 40,000€ shortfall and the 24,000€ in taxes & fees, a total of 64,000€ to be likely to qualify for a mortgage—though of course there are many other criteria including your official earnings, which will affect your eligibility.