Ibiza property buyers has been a focus for us since we established Mortgage Direct in 2006.
Ibiza has a unique property market. It was one of the few places in Spain that was only marginally affected by the Spanish property crisis starting in 2008. In fact, the island’s population grew by 20% between 2006 and 2016 when many foreign families were attracted by the peaceful sunny winters and ever extending summer season. With that population growth the property prices similarly increased to previously unseen levels.
In the past few years Ibiza has seen a huge change in its reputation, converting itself from what was seen to be a clubbers paradise to what is now an intriguing mix of high end villas, luxury adult-only hotels, family holidays, traditional villages, yoga retreats and luxury eco-friendly hotels. Ibiza really does have it all. All this without losing its peaceful charm, iconic sunsets and, of course, its famous nightlife.
Such a change has provided challenges for us too. Our close relationships with the local banks remain important to us as they are often more open minded when it comes to more local property characteristics; whether it be properties built on rustic land or properties with historical planning issues. However, with increasing property prices we have seen a more sophisticated buyer entering the Ibiza market and many of the local branches have been ill prepared for such clients. For such cases we take advantage of our relationships with banks across Spain and beyond who are used to more complex structures behind a property purchase on the island.
Mortgage process for Ibiza property buyers
Once the mortgage is approved, whether with a local bank or on the Spanish mainland, the process remains very local. We have local representatives who know the island inside out; we also work with local lawyers and valuation companies (all approved by the Bank of Spain) to ensure our clients receive the very best service all the way through to completion. On completion day a representative of the local bank branch will sign the mortgage on behalf of the bank and our clients can continue to manage their everyday banking requirements locally thereafter.
With the volume of business we process nowadays on Ibiza and beyond, we are able to negotiate the very best conditions with our banking partners; far better than those that may be available to our clients should they go to the banks directly. In fact some of the terms we have negotiated for properties in Ibiza recently have been some of the best mortgage conditions we have ever seen!
Whatever brings you to Ibiza, we look forward to sharing the experience with you and helping you to secure your dream property on the white isle.