Away from the beach parties, country villas in the interior of Ibiza are quite popular.

The popularity of historical country houses has driven the recent housing boom in Ibiza - a popular island in the Mediterranean known for its parties and attracting celebrities and businesspeople looking to rent villas by the sea or relax on mega yachts along the coast. Rental and purchase prices for properties on the island have always been high, demand is enormous, and supply is limited.

However, with the onset of the pandemic, interest in real estate on the island has significantly increased, along with prices. Coastal properties are eternally popular and glamorized in the global press, but the housing market in the interior of the island, away from the sea, is at the core of the latest surge, according to Jack Harris, a partner in the International Real Estate department of the London firm Knight Frank. "Coastal areas are more touristy, and as a result, they are more volatile and seasonal, with a fluctuating population that peaks in the summer," he said. "The center of the island is a year-round living area with diverse villages where life is always bustling, including festivals, Christmas markets, art galleries, restaurants, and much more."

Ibiza is the most legendary party destination.

Ibiza, located off the eastern coast of Spain and one of the main Balearic Islands, can be considered the most legendary party destination in the world. It is a culture embodied by electronic dance music and nightclubs like Pacha and Hi, where nightlife is the norm and tables can cost up to $50,000. According to Serena Cook, founder of Deliciously Sorted Ibiza and a local resident, Ibiza has always been a hub for creative people. Cook added that the mild winters in Ibiza, with plenty of sunny days, attract real estate buyers looking to move there permanently. People also come here for the free-spirited atmosphere. "It's a place where anything is possible, and different nationalities mix," she said. "In the last decade and a half or so, it has become increasingly luxury-oriented."

The city of Santa Gertrudis is the epicenter of country living.

The town of Santa Gertrudis is the epicenter of country life and boasts numerous well-known restaurants and cafes, as well as the international Morna International College, where locals and expatriates enroll their children. Other towns include San Joan de Labritja and San Jose de sa Talaia. Unlike the modern villas typically located by or on the sea, these lands in the interior are distinguished by their fincas - either traditional houses built from clay and stone in the 18th and 19th centuries, or new properties in the classic finca style, but reimagined for modern living. Harris and Cook say that the latter are hard to find because the local government strictly monitors landscape preservation and does not issue permits easily. Fincas offer views of hills and olive trees instead of the ocean, and over the past three years, according to Harris, their market has grown by double digits. "The rise of remote work is largely behind this growth," he said.

Growth in sales of suburban real estate

Local real estate agencies are also reporting an increase in sales of country properties. This is a local boom that is ignoring the global slowdown that has affected luxury real estate markets from London to Berlin amid rising interest rates and economic uncertainty. Javier Medina, manager of the John Taylor Ibiza real estateagency, said his company has seen "explosive growth in sales" over the past two years. "In the first half of 2023, we experienced a 30% increase compared to 2022," he said. Cook also mentioned that her business has "taken off." "We grew by 20% and sold five country houses in the past year for over $5 million," she said. The owners of country houses include buyers from the U.S., particularly from New York, and tech entrepreneurs from the West Coast, as well as Europeans from countries like England, France, and the Netherlands.

Prices for suburban real estate

The lack of sea views in a finca does not mean a lower price, Harris said. "The price is high, but your money inside the island will certainly yield more benefits compared to the coast," he said. "However, real estate always retains its value, regardless of where it is located." A rural finca in good condition with four bedrooms, panoramic views, a pool, a pool house, several open terraces, and possibly a few olive trees costs at least $3.5 million, Harris said. Coastal properties of the same level cost over $5 million and can be more expensive if they offer particularly impressive views.

The architectural firm Blakstad Ibiza is behind some of the most sought-after and expensive country houses. Founded by Rolf Blakstad in the 1960s, it is now led by his son, also named Rolf. The company renovates neglected fincas and also builds new ones, with the average property price ranging from $6 to $18 million. "We used to have half a dozen projects a year before Covid, and now we are working on a dozen," he said. Blakstad's fincas typically range from 5,000 to 6,000 square feet and are equipped with eco-friendly materials, bedrooms with outdoor showers, solar energy, and large doors that open to outdoor spaces like terraces and gardens that can blend with agricultural land. For example, Knight Frank is currently offering a renovated finca in the village of San Rafael, designed by Blakstad, priced at around $6.5 million, located on a hillside. Surrounded by pine forests and Mediterranean plants, it features five bedrooms distributed between the main and guest houses, five bathrooms, and plenty of outdoor spaces, including a landscaped garden and a pool.

“Parties in Ibiza will always be symbolic and attractive to tourists,” Harris said. “However, if you look deeper into the interior of the island, you will discover why so many people choose it as their home.”