The restored property is in the oldest part of the island’s capital, a designated Unesco World Heritage Site
2 min
A historic home in an Unesco World Heritage Site on the Spanish island of Ibiza has come to the market €10.8 million (US$11.7 million).
Dating to the 16th century, Palacio XI is in Dalt Vila—the oldest quarter in Ibiza Town, the island’s capital—which was designated a heritage site in 1999. The fortified enclave is a labyrinth of narrow, cobbled streets, ancient buildings and stunning views.
The four-storey home was acquired by the seller when it was in ruins and they embarked on a thorough restoration between 2014 and 2018, according to a spokesperson for the listing agency Charles Marlow Ibiza.
Mansion Global couldn’t identify the seller, or when or for how much they acquired the property.
Today, the house is a “blend of historic Ibiza charm and contemporary luxury,” said Tim Stacey, head of sales and rentals at Charles Marlow Ibiza. There are details like stone walls, tall beamed ceilings and grand stone arches, alongside features including an integrated sound system, comfort cooling and underfloor heating.
There’s a modern kitchen with a wine cooler, a dining room that opens out to the large main terrace, the pool area and a covered outdoor dining area, ideal for al-fresco entertaining.
There are also multiple living spaces, a roof terrace, a for-vehicle carport with EV charging, six bedrooms and “superb 360-degree views of Ibiza Town, the island, and Formentera [that] are truly breathtaking,” Stacey said.
Ibiza is considered one of the top luxury residential destinations globally, according to Knight Frank’s Prime International Residential Index, released earlier this year, which found prime property prices on the island rose 12% in 2023.
“Ibiza’s strength lies in its ability to provide an escape from metropolitan life,” said Jack Harris, a partner in Knight Frank’s International Residential team . “It’s a place where one can recharge the batteries (yoga is a staple on the island), enjoy world-class cuisine and reconnect with nature—whether on the beach or in the heart of the island’s countryside.”
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Australia’s wealthy class is expanding fast, and Knight Frank says that a surge in billionaires is reshaping the nation’s luxury property market.
3 min
Australia’s luxury property market is being quietly reshaped by one of the most significant wealth expansions in the world.
According to Knight Frank’s latest Wealth Report, the country’s billionaire population is set to grow by 77 per cent over the next five years, rising from 48 to 85 individuals.
That surge sits within a broader wave of wealth creation. Ultra-high-net-worth individuals, those with more than US$30 million, are forecast to increase by nearly 60 per cent to over 26,000 Australians by 2031.
Globally, the pace is accelerating. The report reveals that 89 new ultra-wealthy individuals are created every day, a figure that underscores a structural shift in capital formation rather than a cyclical upswing.
For luxury property markets, this is not just a headline number. It is a demand driver.
Australia’s wealth story is increasingly underpinned by diversification across resources, finance, technology and services, creating a depth of private capital that is both mobile and strategic.
And mobility is key. The ultra-wealthy are no longer tied to a single market. Instead, they are operating across multiple global hubs, maintaining footholds in cities like London, New York and Singapore, while using Australia as a stable base.
In this environment, real estate becomes less about shelter and more about positioning. Trophy assets remain desirable, but capital is increasingly being deployed across the full risk spectrum, from long-term holds to value-add opportunities. For Australia, the implications are clear. As wealth expands, so too does the expectation of product, and the locations that can attract it.
The billionaire effect
While property remains central to wealth preservation, the latest data shows that capital is increasingly spreading across luxury asset classes, albeit with a more disciplined approach.
Knight Frank’s Luxury Investment Index recorded a modest 0.4 per cent decline in 2025, signalling a stabilisation phase after several years of correction.
But beneath that headline number is a more telling shift. Collectors are moving away from speculative buying and toward assets defined by rarity, provenance and cultural significance.
Impressionist art led the market, rising 13.6 per cent, buoyed by landmark sales including a US$236 million Klimt painting. Watches also performed strongly, up 5.1 per cent, driven by continued demand for brands like Patek Philippe and Rolex.
At the same time, more volatile categories have corrected. Whisky values fell 10.9 per cent, while parts of the fine wine market have softened following pandemic-era highs.
Perhaps the most notable trend is behavioural. Younger investors are entering the market through fractional ownership platforms, gaining exposure to high-value assets that were once out of reach.
For property, the parallels are clear. The same focus on scarcity, narrative and long-term value is increasingly shaping buying decisions at the top end of the residential market.
Global wealth
The growth in billionaires is not just increasing demand, it is changing where that demand is directed.
In Australia, Brisbane has emerged as one of a handful of global cities experiencing rapid change in its luxury positioning. The city’s transformation is being driven by infrastructure investment and the 2032 Olympics, with top-end apartment prices rising from around US$6 million to more than US$10 million in just 12 months.
Luxury price growth has remained steady, with Brisbane rising 2.1 per cent in 2025, while the Gold Coast recorded 2.8 per cent.
At the same time, buying power is tightening. US$1 million now buys 5 per cent less in Brisbane than it did five years ago, reflecting the upward pressure on prime markets.
The trend is not confined to capital cities. Regional lifestyle markets are also capturing attention. Geelong’s waterfront has been identified as one of the world’s hottest luxury residential markets, driven by a combination of coastal amenity, infrastructure and relative value.
In these markets, pricing is no longer the sole driver. Lifestyle, accessibility and long-term growth are increasingly shaping buyer decisions, particularly among globally mobile wealth.
Alternative luxury assets
Beyond residential property, high-net-worth individuals are continuing to diversify into alternative assets that combine lifestyle and investment potential.
One of the most compelling examples is vineyard investment. Knight Frank’s Global Vineyard Index highlights the Barossa Valley as one of the best-value wine regions globally, where US$1 million can secure more than 18 hectares of land.
Despite a 10 per cent decline in land values over the past year, the broader outlook remains positive, particularly as the global wine industry shifts toward premiumisation.
This “trading up” trend is seeing consumers favour higher-quality, provenance-driven wines over mass-market products, reinforcing the long-term appeal of established regions like the Barossa and Eden Valleys.
For investors, the appeal lies in the intersection of lifestyle and capital preservation. Vineyard assets offer not only production potential, but also a narrative — something increasingly valued in a market where experience and authenticity carry weight.
