Informative property guides for anyone looking to buy property in Ibiza. Plus, find property in Spain.

Located in the Mediterranean Sea, Ibiza is one of Spain's Balearic Islands and has long attracted holidaymakers and overseas property investors looking for second homes.

On the island there are several major conurbations, including Ibiza Town, Santa Eularia des Riu and Sant Antoni de Portmany.

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Since the early 1990s, the island has developed a reputation as a clubber's paradise, with a number of world-famous venues playing host to top-name DJs throughout the summer. Some of the most noted clubs include Space, Pacha, Privilege, Amnesia, DC10, Eden and Es Paradis.

However, the island is not all about all-night partying, and there is much to attract people who never plan to step inside the dark clubs.

Indeed, much of Ibiza is protected as UN World Heritage Sites and so remains beautifully un-developed and pristine.

The island also boasts over 70 beaches within an hour's drive of most places and hundreds of fine restaurants.

As a result, Ibiza has attracted foreigners looking to buy a home for several years. Famously, Jade Jagger opted to purchase a property in the town of Sant Joan de Labritjaon. In an interview, the designer revealed that she was attracted by the sunset views and good English schools.

In fact, Ibiza has proved so popular with 'extranjeros' (people not of Spanish decent) that around a quarter of the island's population were born somewhere other than the country.

Pros of Buying Property in Ibiza

The website ibizaholidays.com suggested that the island is an excellent option for people looking to invest in a new property. It explained: "It is said that on Ibiza property prices never fall. Sometimes prices stabilize for a while, but inexorably they start rising again soon after."

Indeed, figures from Spanish Property Insight indicate that prices in the Balearic islands rose from 1672.8 euros per square metre in the first quarter of 2004 to 2264.5 euros per square metre in the final three months of 2006. At this point, properties in Ibiza cost a similar amount to those in the Cataluna region and slightly less than those in Madrid.

There are several different areas on the island, and each has something different to attract people looking for a new home.

In the south and west of the island, there are luxurious residences and stylish mansions. Figures show that an apartment with views in this area costs around 300,000 euros, while villas can fetch over one million euros. Here investors can add to their returns by renting their property for between 800 and 6,000 euros a week.

Ibiza Town is also a popular area, with villas typically costing 1.6 million euros and apartments around 500,000 euros. Prices in the town have soared in recent years, with some property types seeing inflation rates of 300 per cent between 2001 and 2005.

In other areas, such as San Juan and Santa Eulalia, an investor can pick up a villa for just over 1.6 million euros and apartments for between 250,000 and 500,000 euros.

Cons of Buying Property in Ibiza

However, the Spanish property market is not expected to perform particularly well over the coming few years. Prices have risen at a faster rate in Spain than in any other European country, doubling in many parts of the country.

As a result, the country has become very over-developed in parts - and this surplus in supply is expected to result in an overall market slowdown. Indeed, Kyero.com reported that prices in Spain dropped by 1.2 per cent in the three month period ending September 2007.

Despite this gloomy forecast, many experts are still tipping Ibiza as one of the Mediterranean’s hot spots for 2007.

Website spanishpropertyinsight.co.uk revealed: "For first-time investors the areas of San Carlos and San Juan (north-east and north of the island) should be investigated. Property here is still well priced in comparison to the south and larger plots are still available here in a quiet, rural setting, making this area an attractive buy."

What You Need to Know About Buying in Ibiza

Anyone buying a property in Spain requires a NIE number - a unique taxation identification number needed before you can buy a property or open a bank account.

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Spanish Property Guides by Region:

Buying Property in Spain: Costa Brava Property Guide

Buying Property in Spain: Costa Blanca Property Guide

Buying Property in Spain: Mallorca Property Guide

Buying Property in Spain: Ibiza Property Guide

Property in Spain: Costa Del Sol Property Guide

Buying Property in Spain: Barcelona Property Guide

Property in Spain: Buying Property in Madrid