Ibiza needs high-end property to meet growing demand

Ibiza would benefit from the development of new, top-of-the-range houses to meet ever-growing demand, easier.com reports.

Despite the housing crash still blighting much of mainland Spain, demand in Ibiza remains strong - especially at the top end of the market.

Despite this, the number of new properties entering the market is still pitifully low, with just 43 homes given the go-ahead for construction in the first half of 2013. This figure is around half that of the first six months of 2012. Compared to the housing boom of 2006, when 1,501 units were given the green light, it represents just three per cent.

The low figure has been attributed to uncertainty where European finances are concerned, although demand suggests that investments could prove to be fruitful. All that needs to be done now is for banks to ramp up their lending once more to allow building firms to get started and for overseas property investors to get the mortgages they may need.

Now, in light of the demand, analysts have called for a huge increase in the number of properties being built on the White Isle to prevent the supply and demand ratio from skyrocketing.

If new builds are not on the cards, however, renovations and refurbishments could sate ever-growing demand. In Mallorca, Menorca, Ibiza and Fromentera during H1 2013, some 250 projects were approved - of which 175 (70 per cent) were refurbishments. Back in 2012, meanwhile, this figure was at just 30 per cent, silobreaker.com claims.

Are you looking to buy property in Spain ? Estepona , Torrevieja , Orihuela Costa , Ciudad Quesada , Puerto De Mazarron

Are you looking to rent property in Spain ? Madrid , Barcelona , Sevilla , Granada , Cumbre Del Sol