Ibiza’s housing market performance in 2024
For more detail on the Balearic market and the bigger picture see the Mallorca report.
Home sales
Ibiza (including Formentera) recorded 1,648 home sales in 2024, a 3% increase compared to the previous year (Fig. 1-5). However, this figure remains 11% below the ten-year average and 19% lower than a decade ago, highlighting a weaker performance than the Balearic region as a whole, where sales were down just 3% against the ten-year average.
Home sales in Ibiza were already in decline before the pandemic and have yet to recover to the levels seen in the middle of the last decade, when annual volumes regularly exceeded 2,000. The current figures suggest a market that remains subdued relative to its historical norms.
House prices
Against a background of rising prices in the Balearic region (up 14% in 2024) asking prices in Ibiza city – the island’s capital – rose 15% last year to €6,522 per square metre (Fig. 2-3). Over five years, asking prices in the city have increased by 27%, and almost doubled over ten years. It’s fair to say that Ibiza has been a vendor’s market for most of the last decade. As the largest and most active local market on the island, Ibiza city offers a reliable benchmark for house price trends in Ibiza as a whole. Price movements here typically reflect broader dynamics across the island, making it a useful bellwether for market direction.
Housing starts
There were 637 housing starts in Ibiza during the period, based on planning approvals (Fig. 4-1), representing a sharp annual decline of 20%. However, compared to the ten-year average, this figure is still 8% higher, and housing starts have increased by 54% over the past decade.
Despite the significant year-on-year drop, the longer-term trend remains positive. Nevertheless, the pace of construction is still not keeping up with population growth, which continues to contribute to housing shortages and rising prices. Addressing this imbalance will be key to easing pressure on the market in the years ahead.
Conclusion
Overall, the Ibiza property market in 2024 showed signs of resilience in prices but continued weakness in sales. While housing demand remains strong enough to sustain rising prices, particularly in Ibiza city, sluggish sales volumes and insufficient new construction highlight persistent structural challenges. Without a boost in supply, affordability and accessibility are likely to remain pressing concerns and drags on the market.
