Expats looking to invest in property in Ibiza have a range of factors in their favour.
9:57AM BST 07 Jun 2013
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Last year, I wrote about how life was no party for expats in Ibiza, with a rising cost of living and a fall in the sterling-to-euro exchange rate. Some Brits in Ibiza endured a particularly hard winter, as Ryanair discontinued direct flights to and from the island until March.
Eye-catching offers of £10 one-way fares have kick-started the economy again, but a few disgruntled business owners have formed a pressure group, Ibiza Conectividad, to ask the government to fund the 250,000 euros Ryanair would need to fly to Ibiza from Stansted all year. They point out that 1.1 million euros was spent on an advertising campaign before the winter flights were pulled, and they argue that this money could be used to subsidise year-round cheap flights.
However, there is reason to be cheerful, even beyond the recent currency upswing. Foreign exchange experts expect the euro to continue to be strong against sterling, property prices are holding strong and British Airways CityFlyer launched a service last winter. The company has announced that it will more than double the number of flights from London City Airport to the Balearic Islands from October this year, so there will be plenty of visitors once the summer season has ended. New all-inclusive one-way fares for winter are available for £74 per person.
There will be plenty to keep fun-seekers occupied once they touch down. World-famous nightclub Pacha stays open for the close season, and Aura, Bambuddha Grove and Underground are organising big parties for Halloween and beyond.
According to Daniel Chavarria Waschke, managing director of Sotheby’s International Realty (www.ibiza-sothebysrealty.com), which has offices in Ibiza and neighbouring Majorca, buying a home on the White Isle is a wise choice.
“Ibiza had its recovery year in 2012, light years ahead of faltering markets on the Spanish mainland, and is already booming again. Even off-plan and in-construction property is selling at a remarkable pace," he said.
Figures from the Spanish National Statistics Institute last year showed that the Balearic islands of Mallorca, Minorca, Ibiza and Formentera are home to almost 24,000 Britons.
“Ibiza has an appeal as a bolt-hole in the winter months,” said Richard Way, editor of the Overseas Guides Company(www.OverseasGuidesCompany.com).
“Ibiza has some of the most exclusive hillside villas anywhere in the Balearics; arguably in Spain, too.”
Amanda Blanch, 48, and Chris Edwardes, 55, moved to Ibiza in 2010 to open a cocktail bar named Hidden. Their award-winning boutique hotel in Brighton hadn’t weathered the recession, so a move to Cala San Vicente in the north east of the island was an easy decision.
They built Hidden, which has been dubbed an ‘Alice in Wonderland’-style bar, up from scratch, and it is now receiving rave reviews and celebrity customers. According to Blanch, they are committed to Ibiza life.
“Ibiza is amazing in the winter, too - in fact, I prefer it,” she said. “When you have gone through losing everything you have ever worked for at our age and you have to start again, you sometimes have to throw caution to the wind. We ended up in Ibiza by chance and we are very content.”
If you are considering a move to Ibiza, monitor currency carefully to get the best deal. Marc Morley-Freer, head of private client business at Smart Currency Exchange (www.smartcurrencyexchange.com), said that while the euro is performing well, it may be wise to take advantage of the recent upswing now.
“For those buying on a budget, fixing an exchange rate now for delivery in the future, known as a forward contract, would be a good move - it guarantees the price and gives peace of mind,” he said.
