Knight Frank’s report, Beyond the cities: the European destinations finding favour with today’s globally mobile, highlights how high-net-worth individuals are increasingly prioritising lifestyle over location. No longer tethered to traditional urban hubs, they’re choosing places where they can work seamlessly, raise families, and enjoy a slower yet sophisticated pace of life. Among the European non-urban markets seeing the greatest demand, the Balearic Islands stand out as a top relocation choice.

Mallorca has long been admired for its comprehensive year-round infrastructure: excellent international schools, 47 marinas, world-class healthcare, and efficient transport links make it a practical choice for permanent living. Yet it is Ibiza that continues to capture the global imagination. Beyond its famous nightlife, a new narrative has taken hold—one centred on wellness, sustainability and design. Today’s Ibiza is a hub for creative entrepreneurs, young families, and international buyers who value both serenity and sophistication. From organic farm-to-table dining and yoga retreats to cutting-edge architecture set against rugged Mediterranean landscapes, the island embodies a unique blend of modern luxury and natural charm.

Knight Frank’s Wealth Report reinforces this trend, noting Europe’s enduring appeal to mobile capital thanks to favourable tax regimes, residency programmes such as Golden Visas, excellent healthcare systems and robust connectivity. For buyers seeking a base that offers both escape and opportunity, Ibiza and the wider Balearics provide an exceptional proposition.

At Villa Contact | Knight Frank Ibiza, we have witnessed this shift firsthand. Our international clients are increasingly looking for homes that offer year-round livability, privacy, and strong long-term investment potential. Whether it’s a modern architectural villa in the countryside or a seafront home designed for multigenerational living, the Balearics’ property market continues to deliver on both lifestyle and value.

If you’re ready to explore the unique opportunities these islands offer, our experienced team is here to guide you every step of the way. Discover how your next chapter could begin in Ibiza.

Click here to read the complete Wealth Report.

In the ever-evolving world of wealth and investment, The Knight Frank Wealth Report is a critical barometer for understanding how the global elite are managing and growing their fortunes. The 2025 edition provides invaluable insights into global wealth distribution, luxury real estate trends, and emerging investment opportunities. For those in the high-end property sector, particularly in prime markets like Ibiza, the report offers a roadmap for where affluent individuals are putting their money and how real estate remains a key pillar of wealth preservation and growth.

Global Wealth Trends: The Rise of the Ultra-Wealthy

The number of individuals with a net worth exceeding $10 million grew by 4.4% in 2024, reinforcing a strong upward trajectory despite economic uncertainties. North America remains the dominant hub for ultra-high-net-worth individuals (UHNWIs), but Asia is catchingup quickly, with Africa also emerging as a future wealth growth center. A significant trend in this year’s report is the continued wealth transfer from Baby Boomers to younger generations, with Millennial and Gen-Z investors prioritising sustainability, impact investments, and tech-driven assets.

Luxury Real Estate: Prime Markets Maintain Strength

Globally, luxury property prices increased by 3.6% on average in 2024, with resort destinations outperforming major cities. The Middle East and Latin America saw the most significant gains, while Europe’s growth was more subdued. Some of the fastest-growing luxury markets include Seoul (+18.4%), Manila (+17.9%), and Dubai (+16.9%), reflecting strong regional demand and economic momentum. In contrast, major global hubs like New York (-0.3%), London (-1%), and Hong Kong (-2.2%) saw slight price declines as they adjusted to post-pandemic economic shifts.

Real Estate Investment Trends: Where the Wealthy Are Buying

Real estate remains a cornerstone of wealth preservation, with over 40% of family offices planning to increase their property investments in the next 18 months. Investors are particularly interested in residential living sectors (rental properties, senior living, student housing), logistics and industrial spaces, and ultra-prime trophy homes. While global real estate transactions slowed in recent years due to rising interest rates, private capital is stepping in as institutional investment pulls back, signaling a renewed confidence in the property market.

Economic Outlook: What’s Next for Wealth & Property?

Global GDP is expected to grow steadily in 2025, with the U.S. and select Asian economies driving much of the expansion. Inflation pressures are easing, and central banks are shifting towards interest rate cuts, which could re-energise the real estate sector by making borrowing more affordable. While some risks remain, such as geopolitical tensions and asset price volatility, Knight Frank’s outlook suggests a stable environment for wealth creation and property investment.

Luxury Assets: A Changing Landscape

Beyond real estate, UHNWIs continue to diversify their wealth into alternative assets, though 2024 saw a –3.3% dip in luxury collectibles due to cooling demand in fine art (-18.3%) and rare whisky markets. However, investments in vineyards, classic cars, and high-end watches remain strong, particularly as the ultra-wealthy seek unique, tangible assets with lasting value. Sustainability is also becoming a major factor in luxury investment decisions, with younger investors prioritising eco-friendly developments, ESG-compliant properties, and impact-driven assets.

Mediterranean Market Spotlight: How Is Ibiza Performing?

As a premier luxury destination, Ibiza continues to attract affluent buyers. In 2024, the island’s prime residential prices remained stable, rising by 0.7%, a sign of steady demand even as global markets fluctuate. While growth was modest compared to regions like Portugal’s Algarve (+5.6%) and Lisbon (+5.3%), Ibiza remains a key lifestyle and investment destination. Limited supply in the ultra-prime segment ensures continued demand for seafront villas and luxury estates, particularly among international buyers seeking Mediterranean retreats.

Final Thoughts: The Future of Wealth & Real Estate

The Knight Frank Wealth Report 2025 paints a picture of resilience and adaptability in the world’s wealthiest circles. Real estate remains a preferred asset class, with investment shifting toward lifestyle-driven purchases, sustainable projects, and strategic growth markets. For Ibiza’s luxury property sector, the key takeaway is that demand remains strong, reinforcing the island’s status as a premier destination for high-net-worth individuals. As interest rates stabilise and global wealth continues to expand, expect the next few years to bring new opportunities for both buyers and investors in prime real estate markets.

Compiled by research teams around the world, The Wealth Report is Knight Frank’s flagship thought-leadership publication.

Now in its 18th edition, the report has become a highly anticipated document that is considered vital reading for UHNWIs (ultra-high-net-worth-individuals) across the globe and their advisors.

Highlighting the issues that matter to UHNWIs, The Wealth Report is the ultimate guide to prime property markets, global wealth distribution, the threats and opportunities for wealth, commercial property investment opportunities, philanthropy and luxury spending trends.

In brief:

Private capital is critical for real estate investment, representing a record 49% of all commercial transactions in 2023.

With wealth creation turning positive again, the choices of UHNWIs will have a growing influence on real estate outcomes.

22% of wealthy individuals want to invest in residential property this year, and 19% in commercial property.

The need for private capital to aid the repurposing and upgrading of global property have never been higher.

We invite you to explore the latest insights and download this year’s report here.

Last month Knight Frank released their Global Prime Residential Forecast for 2024.

This research outlines anticipated performance trends in the world’s top luxury housing markets for the upcoming year, with some of the key risks and opportunities that are likely to emerge.

The global property market has recently witnessed some notable trends, as detailed in Knight Frank’s latest Global Prime Residential Forecast.

Key Findings

• Positive Growth Predictions: Knight Frank’s revised forecasts project an average growth of 2.4% in prime residential prices for 2023 and a further 2.5% in 2024. This upward trend underscores the sector’s robustness amidst various economic challenges.

• Outperforming Asset Class: Over the past decade, prime residential properties have consistently outperformed most other asset types, highlighting their reliability as an investment.

• City-Specific Forecasts: Dubai is anticipated to lead in 2023 with a projected 14% growth in prime prices, while Auckland is expected to top the charts in 2024 with a 10% increase.

• Market Resilience: Despite economic uncertainties, a sense of cautious optimism prevails. Buyers are encouraged by the easing economic headwinds and constrained supply in several key cities.

• Global Economic Context: Despite the challenges posed by inflation and interest rate hikes, the global economy has shown resilience. The report notes varying approaches by central banks worldwide to these challenges, with a general trend of rising taxes targeting property and wealth.

• Cash Buyers on the Rise: There’s been an increase in cash purchases in the prime property sector, rising from 46% to 52% in the last six months.

• Election Impact: With 2024 set to be a major election year globally, housing is expected to become a key political issue. This could lead to more policy changes affecting the luxury property market. Conversely, easing tax and property regulations are seen as major opportunities.

• Policy and Tax Changes: Various regions have implemented significant policy and tax changes, impacting the market differently. For instance, Singapore has increased stamp duty for non-residents, while Los Angeles has introduced a new mansion tax.

Knight Frank’s analysis provides a comprehensive look into the global prime residential market, offering valuable insights for investors and market observers.

Read the full report here

If there is one thing property agents have learned during the last year, it’s that nothing is predictable. The heart of the Ibiza property market barely skipped a beat and has still managed to come out stronger than ever. Current data points to a sustained recovery even when compared to the two previous pre-pandemic years.

Detached primary residences and second homes as well as long term rentals are the most sought opportunities. The decrease in holiday rentals due to travel restrictions has been noticeable and has added to the urge for some people to invest in holiday homes as opposed to renting. The average square metre rate across Ibiza and Formentera jumped slightly from 3,728€ in 2020 to 3,972€ in 2021. The upper end of the market registered values between 10,000€ and 20,000€ per square metre showing that the luxury market is still hot. New developments are few and far between, with around 300 dwellings in various stages of development across the island and some areas suspending development entirely until things return to normal.

Ibiza comes in as one of the more expensive Spanish regions but the lifestyle makes up for it without a doubt. Locally, there is still a dearth of available houses which continues to drive prices up, in some cases into the double digits across the Balearics. Wealthy European buyers with cash to hand, have given serious thought to their lifestyles and the trend towards finding a second home that allows for a safe and comfortable retreat has exploded. German buyers are still in the lead followed by British then French and Dutch, with most seeking secondary homes. By the end of the first quarter of 2021, foreign buyers were at 83% of pre-Covid figures. Not bad considering the precariousness of the global economy. Real estate has always been seen as a safe investment during difficult times and that is truer now more than ever.

The Ibiza property market has continued to be very strong in the higher end despite a slow downward turn that started in 2017. The first quarter of 2021 saw 257 sales down by 17% due almost entirely to demand outweighing supply. Obviously, a drop in demand occurred during the deepest days of lockdown due to travel restrictions, although some hardy buyers took the leap and bought homes via virtual tours.

While many sectors across the world are experiencing a slow recovery the Ibiza market still manages to remain one of the most buoyant in Europe. It’s hard to see a time when that ceases to be the case as the island provides what so many people are looking for – an envious lifestyle played out against a backdrop of magnificent weather. There are still few places in the world that consistently delivers on its promise of paradise.

According to the quarterly report by the Land Registry, with international geographic mobility recovering and the level of confidence in the control of the pandemic increasing, foreign demand will continue to grow, helping to boost sales in the residential real estate sector. However, take note, data is in the eye of the beholder and should you be seeking up-to-the-minute stats, get in touch to make an appointment with one of our agents.