Periodic reports on the Ibiza property market (Balearic Islands)
This page offers data-driven reports on Ibiza’s property market, consolidating key data from public sources to highlight the latest trends and developments. Illustrated with charts and infographics, these reports provide critical insights into the residential real estate market of Ibiza, with a focus on flagship municipalities such as Ibiza, Santa Eulalia del Río, San Antonio, and San José, not to mention Formentera. These reports are written for foreign investors, property buyers, vendors, professionals, and journalists looking for insight into Ibiza’s property market to help inform big decisions with important financial consequences.
Ibiza property market overview
Ibiza (Eivissa in Catalan) is a prime destination for international property buyers looking for second homes, holiday properties, or investment opportunities. Renowned for its stunning coastline, Mediterranean lifestyle, and vibrant cultural scene, the island attracts a significant share of Spain’s foreign property transactions. As one of the most dynamic housing markets in the Balearic Islands, a focused report on the Ibiza property market is invaluable for anyone with an interest in this region.
Located in the Balearic Islands, Ibiza offers a diverse range of housing options, from luxurious villas to charming apartments in historic towns. The market presents unique opportunities and challenges worth analysing. Key municipalities like Ibiza, Santa Eulalia del Río, San Antonio, and San José are among the most sought-after areas for buyers and investors. The island of Formentera is one of the most exclusive destinations on earth.
The reports cover a wide range of topics to provide a comprehensive understanding of the market, including:
- Home sales across the Balearic Islands and Ibiza
- Foreign buyers: market share, residency status, and second-home investments.
- New-build properties: sales, pricing trends, and index data.
- House prices: general trends and specific insights into flagship municipalities like Ibiza and Santa Eulalia del Río.
- Mortgage lending: base rates, borrowing costs, and their influence on the market.
- Housing starts and key factors affecting supply and demand.
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Ibiza in the Balearic context
Most publicly available data on the property market in the Balearic Islands covers the region as a whole, making it difficult to extract insights specific to Ibiza, which accounts for just over 10% of the Balearic housing market by sales, meaning its market activity is too small to significantly influence the regional picture. As a result, trends in Ibiza may differ substantially from those observed in the Balearics overall. For instance, while home sales might decline in Ibiza, they could simultaneously increase in the Balearics, underscoring the need to examine Ibiza-specific data for an accurate understanding of its market.
Despite these differences the regional data does provide valuable context. Trends observed at the Balearic level may offer clues about the forces shaping the Ibiza market, although these indicators are not definitive. Furthermore, critical metrics such as foreign demand and mortgage activity are only reported for the Balearic region, limiting the availability of Ibiza-specific insights. Readers seeking a comprehensive overview of the Balearic property market, particularly Mallorca—which represents almost 80% of the market—can refer to the Mallorca property market report, which provides a detailed analysis of regional trends.
This report focuses exclusively on Ibiza, presenting the most relevant data available, including home sales, house prices, and housing starts. By narrowing the lens, the aim is to provide a clearer picture of the unique dynamics shaping the Ibiza housing market.
2024 Full Year
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2024 H1
Ibiza property market report: First half of 2024 (H1 2024)
Home sales in Ibiza
There were 736 home sales in Ibiza during the reporting period (Fig. 1-1), representing a percentage decline of 26% compared to the previous year and 17% below the ten-year average. This makes it the third weakest period of sales in the last decade, surpassed only by the pandemic-affected years of 2020 and 2021.
The downturn in sales can be attributed to a combination of factors, including high property prices, limited supply, and a perception of hostility towards foreign buyers in recent years. Certain local groups and politicians have voiced opposition to international investment, which appears to have dissuaded some potential buyers. This combination of economic and social dynamics has placed further pressure on the market.
House prices in Ibiza
According to data from property portal Idealista, the average asking price for property in Ibiza city was €6,385 per square metre, marking a substantial annual increase of 17% (Fig. 2-1).
However, a ten-year price index shows more significant growth, with asking prices in Ibiza city nearly doubling since 2015 (index value 195). In Santa Eulalia, price growth has been even more pronounced, with a ten-year increase of 131% (index value 231), indicating a more substantial rise than other parts of the island (Fig. 2-2).
While prices in Ibiza have risen significantly over the past decade, this growth has not been evenly distributed across the region. Santa Eulalia has outpaced Ibiza city, suggesting that demand is shifting or diversifying within the island.
Housing starts in Ibiza
Planning approvals indicate 322 housing starts during the period (Fig. 4-1), a decline of 3% compared to the previous year but 21% above the ten-year average. Over the past decade, housing starts have increased by approximately 21%.
While the number of new homes being built is not declining, as seen in Mallorca, the current rate of development is insufficient given Ibiza’s population growth. The shortage of new housing supply is contributing to upward pressure on prices, particularly in sought-after areas like Santa Eulalia. A more robust pipeline of housing starts will be essential to address these imbalances in the future.
Key takeaways
- Sales performance: Ibiza saw 736 home sales, a decline of 26% year-on-year and 17% below the ten-year average, marking the third weakest period in the past decade.
- Price trends: Average asking prices in Ibiza city reached €6,385/m², a modest annual increase of 17%. Over ten years, prices have almost doubled in Ibiza city (+95%) and more than doubled in Santa Eulalia (+131%).
- Housing starts: With 322 housing starts during the period, Ibiza recorded a slight annual decline of 3%, but figures remain 21% above the ten-year average. Despite this, housing starts remain insufficient to match population growth.
Conclusion
The Ibiza property market is facing significant challenges, with weak sales, rising prices, and limited housing supply being the dominant themes. Declining sales are a reflection of high prices, constrained supply, and a cooling of foreign demand due to mixed local sentiment. While house prices have risen steadily over the past decade, growth is uneven across the island, with areas like Santa Eulalia seeing more substantial increases than Ibiza city.
Housing starts have improved over the decade but remain inadequate to meet the demands of a growing population, which continues to place upward pressure on prices. Looking ahead, the market is likely to remain constrained unless policies and development practices evolve to address supply shortages and clarify messaging towards foreign buyers. For now, the Ibiza market appears to be characterised by high demand, limited supply, and price pressures, trends that show little sign of reversing in the near term.
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Disclaimer
These reports are prepared in good faith using publicly available data. While efforts are made to ensure accuracy, no guarantees are provided regarding the completeness, reliability, or suitability of the information for any purpose. Use of this information is at your own risk.
