Blog d'octobre et actualités immobilières

Blog d'octobre et actualités immobilières


october blog and property news

August Slump Hits Ibiza Private Rentals


For the first time in several years official figures show that Ibiza saw a drop in the number of people booking privately rented holiday accommodation during August 2017 when compared with July, prompting allegations that property owners have effectively priced themselves out of the market.

Industry insiders have suggested that the rise in short-stays, as opposed to one and two week bookings is due to a lack of the necessary funds on the part of visitors to the island. Alternatively the decline in August rentals could be due to a number of other factors, such as; regular and relatively cheap flights allowing holidaymakers to take several trips and weekend breaks in order to attend particular events that are of interest to them.

UK tour operator Jet2, for example, has greatly expanded its flight programme during the summer months and now provides the opportunity to fly out to Ibiza from a greater variety of British airports, on practically any day of the week and with a wide choice of durations. A greater awareness and promotion of the island’s natural beauty, heritage and cultural events may also be responsible for attracting a different demographic, the kind of people who would not set foot on the island in the height of the clubbing season, as well as those who want to plan a few special days, a romantic break or a civil ceremony.

Taking the summer as a whole the number of visitors has certainly risen year-on-year but it appears that the days of slavishly booking holidays in the New Year and frantically saving for a two week August spending spree are over for many. What are the implications, then, of these shifting trends for would-be landlords of private holiday lets?

First of all more planning is needed in the initial stages of any venture into property investment with a view to using it for tourist rentals. The best time to buy is now. Recent figures show a 2.8% rise in house prices in the Balearics which will be boosted by local investment during the winter months. Purchasing in the autumn will also ensure that legal requirements can be met and procedures put in place by the start of the next summer season. It is imperative that proper legal advice is sought as new rental legislation, introduced in the Balearics this year, can prove inhibitive if not understood and adhered to correctly.

Secondly the advertisement of any approved holiday rental has to be handled with expertise, as does the operation as a whole. Short-stays and multiple turnovers should be supervised by a reliable property manager in order to run smoothly for all concerned. Properties on community developments are appealing as investment purchases for holiday rentals as they often have facilities such as communal pools, tennis courts and playgrounds but recent amendments to Balearic letting laws means that approval for use by holidaymakers requires certain strict criteria to be met, including the agreement of other members of the community in order that a tourism license might be granted. This means that disturbance to neighbours from regular change-overs needs to be kept to a minimum.

When choosing a property intended for commercial holiday rental it is always wise to favour those that already hold tourism licenses, as this will greatly speed up the process as well as confirming suitability. All this considered, investment in property for holiday rental remains a rewarding and potentially lucrative prospect for the long term, as continued growth in this area clearly indicates.



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