A detailed report and map has recently been published that shows a reality that many already know but that needed to be materialized. ‘The Wealth Report 2023’ shows how Ibiza is becoming the preferred location for the foreign investor, focusing on property.
Prepared by Knight Frank Research, this report addresses the great attraction of the Balearic Islands, although the clear protagonist and where investors are heading is Ibiza. As for the map, it shows the countries of origin of those who own real estate worth 2 million dollars (or more) in Ibiza.
As you can see below, there is a large number of investors who come from Brazil or India. On the other hand, and something that is really curious is that there are many owners who come from African countries such as the Congo, Ethiopia or South Africa.
On the other hand, the study highlights an aspect that goes beyond Ibiza and that is that Spain is the second place in the world with the most international investment in expensive or luxury propertiesonly behind France.
Foreign capital already has a favorite place, Ibiza, although there are also some disadvantages
Liam Bailey, head of international market research at Knight Frank Research draws a conclusion from the report and comes to confirm what happens in Ibiza. “When a market is more affordable, domestic buyers tend to dominate. On the other hand, if the market is more expensive, international investment increases.”
Now, here a serious problem can be found behind the scenes and that is that the population of the Balearic Islands it has increased by 50% since 1996, mainly due to an increase in also newcomers attracted by the beaches and sunny weather. The trend has accelerated in recent years as the Covid pandemic has increased the number of remote workers on the islands.
The growing population creates the need for more police officers, doctors, and cleaners, all of whom need housing. The conditions that push prices up around the world are even more severe on the islands.
That surge in demand has pushed home prices in the Balearic Islands to be the highest among any region in Spain, including Madrid, according to a report by staffing firm Adecco Group AG.