Ibiza : Treasured island

With its peaceful beaches and beautiful countryside, there's a lot more to Ibiza than you might think, says Laura Latham

While Spain's property market is in the grips of a downturn, one Iberian location continues to draw the crowds. Ibiza is still partying, with a residential market that is not only still very healthy but growing in popularity.

The only downside was that, until now, flights from the UK stopped between October and April, which restricted owners from using their homes for a good five months of the year. However, Ryanair has just announced a direct service that will make the island a more viable second-home destination.

"Ibiza's property market hasn't suffered like mainland Spain's," says Charlotte Williams, of Aylesford International, which has an office on the island. "But it's very different. In the 1980s and 90s the island was seen as a hedonistic resort, but now it's regarded as the centre of sophisticated bohemianism."

Though it might still be the favourite hang out of young clubbers, Ibiza has worked hard to preserve its well-heeled areas too. Away from the bustling tourist hubs of San Antonio and Playa D'en Bossa are the historic streets of Ibiza's old town and traditional villages.

As a result, the island has had its fair share of celebrity residents – including Jade Jagger, Noel Gallagher and James Blunt – many of whom used to party here in its early days as a clubbing paradise. However, while the mega-clubs still rock, the older crowd has moved on. "The original club set have grown up and invested in property away from San Antonio," says Williams. "They tend to buy up in the hills where it's peaceful and more secluded."

Such properties tend to be expansive villas with large areas of land, infinity pools and architect-designed exteriors costing from around £5m, with Williams reporting a "surge" in enquiries for villas priced over £10m. Ibiza is, in fact, so in demand that average family-style properties with three or four bedrooms can cost between £450,000 and £800,000, with apartments in the most-desirable locations starting at around £300,000.

However, those with lower budgets needn't feel excluded. If you know where to look, you can find apartments from under £150,000, although you'll need to seek out the busier, less popular areas. Local agent Stirling Ackroyd has a large selection of well-priced property on its books, mainly in the family-orientated resorts of Es Cana, Santa Eulalia or Cala Longa, starting at £119,000 for studios and one-bedroom properties, to around £160,000 for a two-bedroom seafront apartment.

Expect to pay more for properties in and around Ibiza Town, especially if you want the old town area, as it's a popular place to live with locals and second-home owners. "The prices there are higher and holding up well in the areas around the port and the old town," says Stirling Ackroyd's Cora Cobain, who advocates being flexible. "Going further out, to the borders of town or Figuretes, the price levels fall away sharply and for the same price or marginally more than a studio in the more desirable, older part of town, you can often find large unmodernised two or three-bed properties."

Larger residences, such as two or three-bedroom villas or townhouses in less exclusive resort areas will normally cost from around £300,000. It's also possible to find rural property or character apartments at this price level but these will tend to need renovation or some upgrading at the very least.

Doing this may well be worth your while. Charlotte Williams bought and renovated two properties five years ago and has seen them soar in value, while she is able to rent them easily for an average of £2,000 per week in the five-month summer season. She says demand for decent rental property on the island is pretty high and that anyone hoping to make enough to offset some of the cost of their investment should seriously consider it as an option.

And with the added bonus of new off-season access, Ibiza is likely to see a wave of tourists and house hunters seeking a more flexible winter sun destination. Williams says the news is "fantastic" for anyone wanting to live or visit Ibiza year round. "I'm sure winter flights will bring a fresh surge of buyers to this chic retreat."

Story from www.independent.co.uk

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