Ibiza is the hot spot for touristic real estate investments – Why?

Rental villas in touristic hot spots have become the preferred alternative to expensive hotel rooms by all touristic categories. The advantages are obvious, and if you have a rental property in on of those areas, you can truly make a generous profit out of those. Finding the right touristic area that will make your profits go through the roof. And real estate investment experts think that Ibiza is one of those locations that should raise your interest. Spain is for sure one of those countries with an incredible touristic potential in Europe, and maybe only France is placed in a higher position than Ibiza. But Spain's Balearic Islands are due to increase in popularity for tourists. In case those weren’t already popular. Only in 2016, the investments in Spain’s Balearic Islands were estimated at 200 million euros. This is about 10% of all investments in Spain in 2016. Thus, there is a real potential on the real estate market.

What makes Ibiza the trendy real estate investment location of today?

Besides the incredible nightlife and the high touristic potential, there are several other coordinates that make out of Ibiza a real estate investment paradise.

• Incredible rental potential. Investing in properties in hot touristic areas like Ibiza can be a great deal. In fact, owning a second home in this little gem can turn into a real profit generator. In fact, with Airbnb emerging and taking the place of expensive hotels, the number of people who choose rental villas instead of hotels increased by almost 25% in the summer of 2017.
• An increasing demand for accommodation facilities. As of 2016, the small island was struggling with an increasing demand for accommodation facilities, such as hotels and villas. The political and economic instability present in other touristic areas of a high demand until recently, made the tourists seek safer and more secure vacation destinations. And Spain’s Balearic Islands seem to be those areas. In 2016, there were legally registered somewhere around 100,000 touristic beds on the island, and apparently those weren’t enough to answer to the high touristic demand.
• High profits in small intervals. A handsome and well-equipped villa, with pool access and a generous courtyard might generate weekly somewhere around 6,000 pounds in profits. Certainly, this is an investment worth considering and one of the most obvious reasons why Ibiza is a paradise for real estate investors.

Buying, renting and managing a villa in Ibiza – How difficult is it?

Last year, in the first two months, there were purchased approximately 2,500 properties in Ibiza. With prices starting from 2.060 euros per square meter, the location isn’t a cheap one to invest in, but it is certainly worth the price. Buying a property in a foreign country with different laws and regulations than the country in which you currently find yourself, might be seen as a burden for many. However, this is not a solid reason for which to skip such a big and profitable investment opportunity. Depending on the final purpose - residential or rental – you have to take into account several small aspects that managed properly, will save you plenty of stress and money. You will have to refine your search in order to find a property that is suitable for the final scope that you have: living there or renting the property entirely. If you seek a property only for rental purposes, an expert team of property managers might make the process considerably easier, as they are able to help you with all the legal aspects involved by purchasing a property here. Also, certain agencies like these will help you with all the management aspects of your property, if you want to invest in one only for renting purposes. The market is a generous one from this perspective, and such agencies, while charging some fees monthly for their services, are still able to boost your own. Here’s why.

Ibiza property management services – Boosting investor’s profits

While some expert agencies are able to help you with the process of purchasing a property here, their services go beyond this. Property management services may be a breath of fresh air for those investors that don’t have their residence in the jewel of the Balearic Islands. While managing a property remotely is not accomplishable, some entities specialise in caring for those properties in a highly professional and attentive fashion. In most of the cases, rental owners can navigate through a generous variety of services. Some services that may make your life as a property owner in a hot touristic area, easier, are as it follows.

• Cleaning and maintenance services. While your property will be rented throughout the touristic season multiple times, you may want to consider discussing with a specialised team the maintenance and cleaning aspect. The experts at an Ibiza property management agency claim that these services are one of the most looked after in their offer. Such teams will make sure that your property will look professional after each group of tourists leaves your rental property, the services being available at request as well. You won’t have to worry that the next group of tourists will find relics of the renters before. It has been proven that those properties that show obvious signs of usage are off-putting for potential renters and this might endanger your property’s profits and reputation.
• Reception services for tourists. Rental villas and houses are unlikely to have a reception themselves, but the advantages that emerge from such services are incredible. Instead of leaving your temporary renters to discover your property and its perks, certain touristic operators are willing to do this for you. Reception services for tourists that are not familiar with the property will contribute to your property’s reputation, as tourists are unlikely to discover those themselves. An initial tour of your property will present it in its most perfect light, as these services are a type of reputation management services.
• Villa reservation management services. if you have some other businesses besides your rental villa, you most likely lack the necessary time to manage all the reservations for your property. But the same expert agencies will be able to help with those as well in a transparent and highly professional fashion. That means that you’ll have guests that will always be pleased with your services and your peace of mind, while your rental property is generating substantial profits.

While the prices for investment properties are a bit high, Ibiza has an amazing investment potential for all real estate investors. Purchasing a property here and choosing the right management services might prove a perfect investment opportunity and an amazing profit generator.