Investing in a commercial unit in Ibiza means buying an income: the rent paid by a tenant running a business on an island with heavy tourism, little new land and a resident population that keeps spending outside the season. Chosen well, it is an asset with steady income and simple management. Chosen badly, it is an empty unit from October to May.
1. What yield is reasonable to expect
Gross yield, that is annual rent divided by the purchase price, depends above all on location and tenant. These are the indicative ranges we work with:
| Type of asset | Indicative gross yield |
|---|---|
| Prime unit let to an established operator | 5% – 7% |
| Unit in a secondary area with a good lease | 7% – 9% |
| Warehouse or unit on an industrial estate | 7% – 9% |
| Unit where you run the business yourself | 10%+ (with operating risk) |
The better the location, the lower the yield on price tends to be and the safer the rent. A figure well above these ranges almost always hides something: a lease about to expire, a weak tenant or a licence that doesn't allow what it seems to.
2. Scarce supply and steady demand from operators
Very little new commercial space is built in Ibiza, while demand from hospitality, retail and service operators renews every season, from Spain and abroad: Italy, France, Germany and the UK. We receive 5 to 15 enquiries a day from businesses looking for premises. That combination holds up rents on the good streets and shortens the time a unit stays empty.
3. The areas that hold their rent all year
- Eivissa centre and the Eixample: residents, shops and offices twelve months a year.
- Santa Eulària: steady commercial life thanks to its residents.
- Santa Gertrudis: restaurants and shops with resident and visiting customers all year.
- Sant Jordi and the airport area: warehouses and services with continuous activity.
- The coast and Sant Antoni: high rents in season, but fewer months of trade to budget for.
4. From gross to net yield
The figure that matters is net. Before comparing units, subtract what it really costs to hold the asset:
- IBI property tax, community fees and levies.
- Insurance and maintenance.
- Empty months between one tenant and the next.
- Tax on rental income.
- Purchase costs: transfer taxes, notary and land registry.
5. The lease is worth as much as the unit
In commercial property, buying a let unit means buying a lease: the years left, the rent and how it is indexed, the guarantees and the tenant's solvency. The same unit is worth very different amounts empty, with a two-year-old business or with an established operator on a ten-year lease. Always check the lease, the age of the business and the payment history.
How we help
- We value the unit against the deals we know in its area, not against asking prices.
- We check licences, permitted uses, smoke extraction and terrace.
- We analyse the current lease and the tenant's solvency.
- We calculate the net yield, with real costs and taxes.
- And if you buy, we manage it: rent collection, incidents and renewals.
Disclaimer: the figures in this article are indicative market ranges and are not an official valuation or investment advice.
