Bound for the Balearic Islands

The beautiful, rich and famous spend a large part of the year at their luxury villas in the Balearics. With their considerable wealth, they could easily afford properties in Saint-Tropez or the jewels on the Riviera, but James Blunt, Claudia Schiffer, Boris Becker and many others prefer this pebbly and windswept Spanish Archipelago for a whole variety of reasons, including the beauty of its beaches and its crystalline waters. Fortunately, certain sectors have been protected from mass urbanisation and their prices have not rocketed skywards… But for how long?

Price correction

As in Spain in general, the property prices in the Balearics suffered serious declines following the international financial crisis and especially the effects of cheap credit, which destabilised the national banking sector. ‘Prices collapsed,’ says Laurent Morel-Ruymen, from the Menorca Fincas agency in Menorca. ‘But quality properties have held onto their value better than those lower down the scale, such as little apartments. We’re now seeing prices bounce back slightly. The transactions are more closely fought. For a good-level property, there are usually at least two buyers around where just a short while ago, there was nobody.’ The same is true of Ibiza. ‘The market ground to a halt for four or five years, but in my view, this last year has seen a strong recovery,’ says Thibaut Poupard, from the agency of the same name in Ibiza. And yet such a statement also needs qualifying. ‘The property market never really imploded in Ibiza. It’s a bit like the île de Ré in France,’ points out Poupard, adding that the margin for negotiation is usually around 10 to 15%. ‘It all depends on the seller. If they’re Spanish, the margin can reach higher levels, but not if they’re European, or Russian.’ Whatever the scenario, it’s true that the range on offer in the three fashionable islands of Ibiza, Mallorca and Menorca, is still impressive. There’s a vast range of properties to fall in love with – even for the most demanding buyers.

Jet-set Ibiza

Ibiza has something of a wild reputation, which is of course what attracts some people. Its love of all-night partying is well-known. Giant nightclubs, such as the Pacha, lure a whole world of dance music-loving clubbers. Meanwhile, the most discerning foodies are enticed by the delicious temptations of the gastronomic restaurants that abound on the island, such as the Lio, a subsidiary of the Pacha, which has just opened facing the port with its rows of yachts. The smartest districts are hidden amidst the built-up areas – complexes of gated and guarded villas, of which there are three or four on the island. The very wealthy often set their sights on the hills above the city, looking for an old villa (‘finca’) ‘in the middle of nowhere’, without a facing property so that no neighbours are disturbed by their parties.

Luxury on Ibiza means living in the remotest places – no doubt a remnant of the hippie vibe which has been a part of the island’s fabric since the 1960s. The most happening time of year to spend a few days on the island is when the nightclubs open, in June, and just before the end of the season in September. And the height of fashion is to have a boat, if only to pop over to the neighbouring island of Formentera, accessible only by water. A magical place for those in search of near-deserted beaches or creeks, such as Philippe Starck, who built one of his remotest hideaways on this wild little island. The prices of the traditional fincas remain high. There’s no false modesty about the large old 1,500 m² property on the hills of Ibiza with a view of the city, a 2 ha park and two swimming pools – the price tag is a cool €18 million. Some large properties require renovation, but these are rare as most have already had a makeover.

More common are the contemporary villas, with their modish minimalist style, and price tags that range between €5 million and €25 million, depending on how close they are to the sea. But if you’re looking to have your own house designed by an architect, it won’t be easy. In fact, there’s very little land for development, because the authorities are very sparing indeed with their construction permits, in order to avoid the over-urbanisation to which Mallorca has often fallen prey. According to Thibaut Poupard, a plot of land is worth around €700,000. It would take around €500,000 to €1 million to construct a villa. By contrast, a studio in a central location in the little streets of Ibiza can be yours for only €150,000. The market is quite volatile, with properties often changing hands. In general, properties are sold after between three and eight years, unless the owners can regularly rent out their villas in the high season, between 15 July and 15 August. At that time of year, a sublime ultramodern villa with 400 m² living space and outbuildings (accommodation for friends and caretaker) can fetch as much as €40,000 per week in rent. According to Mila Gonzalez, director of the Ibiza Country Villas agency, who has been living on the island for nearly 30 years, Ibiza has undergone huge changes in that time and is no longer merely a queen of the night-time scene. ‘It’s become a luxury island, but there are still some quiet villages full of artists still doing the hippie thing.’

Menorca the Green

As its name suggests, Menorca is the smallest of the Balearic resorts. It has been listed as a biosphere reserve by UNESCO and as a result, 50% of its coastline is protected from all construction. Neither are there national roads along that coastline – to get to the sea, you have to take any number of small paths. The airport – now international – was built relatively late. The beaches are wild and the seafront has not been disfigured by concrete. Cycling is very popular here. The water is clear, warmed by the sun, and ideal for underwater diving. It’s perfect for sailing too, with a permanent breeze, as there are no mountain barriers in Menorca, unlike Mallorca. The highest point – El Toro – is just 350 m above sea level. ‘The locals really want to preserve the island, just like the Corsicans, but they don’t bomb holiday homes! Quite the reverse, they’re very hospitable,’ says Beverly Ward, the negotiator from the agency Bonnin Sanso, not without a certain mischief.

Half of the property market is dedicated to second homes. Buyers can look forward to a fairly complete range, starting with a classic 60 m² apartment on the coast at €150,000. In the centre of the two capitals – the artistic capital in Ciutadella and the administrative capital in Mahon – the prices of typical houses in need of renovation are hardly excessive, at around 1,500 euros/m². A 300 m²house will fetch €400,000 – a little more if it has the ultimate plus point: a view of the port or a neighbouring palace. In the built-up area, a ‘chalet’ (house) near the beach will fetch between €350,000 and €450,000. Nearly all of them have their private pools. The fincas, whose grounds stretch from 30 to 300 or even 500 ha are impressive, and their value varies according to their size and orientation towards the sea. An old property with a certain cachet will start at €6 million, with a view of the water. ‘A similar property would fetch around €30 million in Palma or Ibiza,’ says Laurent Morel-Ruymen, ‘while in Menorca, you can get something quite exceptional for just €2 million’.

The final type of property is a small affair with 5,000 m² grounds, the result of the break-up of a finca, sold for €600,000-€700,000, but without water or electricity and requiring a complete renovation. These places rarely have sea views, but the beach is only five minutes away. It’s a bit like having a Provençal mas in the Alpilles.

But there’s often an old stable as a bonus, because the island – the birthplace of Menorcan black horses – has a long equestrian tradition. Every fiesta, in particular that of St John sees a fine procession, with many horses still pulling carriages, of which there are several on the island.

It’s hardly surprising that this little island, which guards its environmental heritage closely like a treasure is a draw for Parisians. Demand is growing exponentially. It’s mostly families who enjoy the peace and quiet, the natural landscapes, the solidly built houses and the still vibrant local culture. They’re generally young couples aged 30 to 40, with young children. ‘These are not nouveaux riches. They’re old money, but they just love a little barefoot luxury,’ says the manager of Menorca Fincas.

His latest transaction to make a new owner happy was a 180 ha finca, entirely in need of renovation, sold for €3.5 million. Thibaut Poupart retains a certain reserve: ‘Modern constructions are beginning to spread out in Menorca in certain sectors. I’ve been visited by potential owners who’ve come to the island, saw the large ultramodern villas and finally decided in favour of Ibiza.’ That’s just how it goes… But a life like this, with its chance to bask in the water while gazing at idyllic Mediterranean landscapes, could be a lot worse.