Ibiza property market skyrockets

Today, housing prices in the Balearic Islands significantly exceed the level that existed before the 2008 crisis. Five locations in Ibiza top the ranking.

Ibiza is a European paradise: well-developed air connections with all of Europe, breathtaking landscapes, mild climate, and international fame make the island a favorite vacation destination for tourists from around the world.

It seems that virtually every celebrity visited here this summer. The largest businesspeople, movie stars, musicians, and athletes chose Ibiza and its beaches for vacation, which immediately impacted the real estate market.

Today, even in the conditions of a post-pandemic market with all its peculiarities, the average transaction price on the island exceeds the records set before the subprime lending crisis. Back then, the peak prices occurred in the third quarter of 2008 and amounted to 2,355 euros per square meter. Finally, after ten years of downward trend, in mid-2018 prices returned to pre-crisis levels and now exceed them.

According to first quarter 2021 data, prices are 10.5% higher than before the previous recession. Currently, the average price per square meter in Ibiza is 2,602 euros. Five areas of the island lead in price growth rates.

1. Santa Agnès de Corona

The Santa Agnès de Corona area, located in northwestern Ibiza, has the highest real estate prices on the entire island: 9,943 euros per square meter.

Properties with 2 bedrooms in the municipality of San Antonio de Portmany cost an average of 976,033 euros. For real estate with 3 bedrooms, they ask 2.37 million euros. Compare this to the island’s average price of 411,604 euros.

If the number of transactions during quarantine in Santa Agnès de Corona amounted to only five sales in 2019 and four in 2020, now 23 apartments and 184 villas are offered here.

2. Sant Josep de sa Talaia

The southwestern part of the island is a vast paradise with the cleanest beaches and the most pristine natural landscapes of the archipelago. Es Cubells is located in the center of this area. Real estate prices here average 7,729 euros per square meter.

271 apartments and 545 houses (villas and townhouses) are available for purchase. The average price of apartments exceeds one million euros, the average cost of houses is 2.34 million euros.

At the same time, only 14% of houses on the market are offered for rent. It is precisely the high demand for purchase that determines price growth.

3. Santa Gertrudis de Fruitera

This town is the only place in the interior of Ibiza that made it into the ranking of areas with the highest price per square meter. The cost of 1 m² here is 6,886 euros.

This is one of the few areas where prices have not grown in recent years. The situation began to change only two years ago, since 2018. Currently, there are no offers for sale of apartments and flats on the market. Among houses put up for sale, individual houses with several bedrooms predominate. There are currently 134 such offers.

4. Sant Francesc de s’Estany

In fourth place in the ranking is Sant Francesc de s’Estany, a village in the south of the island with an excellent location near the main airport and the Salinas salt baths.

Meanwhile, the average price per square meter of real estate here is 6,685 euros.

A villa here can be purchased for 1.66 million euros. The most typical option is a house with three bedrooms and a small plot.

5. Sant Joan de Labritja

Located in the north, Sant Joan de Labritja is the least populated municipality of Ibiza. Here you can enjoy nature and rural life.

Mountains covered with pine forests, rocky bays opening impressive scenic views, and against this backdrop farmers working in their fields - all this sharply contrasts with the glamorous pictures of life on the other side of the island. And yet it is precisely this area that took the honorable fifth place in the ranking.

The average price of one square meter of housing here is 6,517 euros.

The Phenomenon of Ibiza’s Real Estate Market

As can be seen from the ranking, it is precisely the areas that are not promoted and not flooded with tourists that offer real estate in Ibiza at the highest prices.

At the same time, villas with several bedrooms - from 4 and more - are appreciating fastest. This trend began in 2015 and continues to this day. Over the past five years, the average price of properties with 4 bedrooms has grown from half a million euros to 900,000. Demand has also stimulated supply: by the second quarter of 2021, such properties accounted for 24% of market supply.

Another interesting phenomenon of the island is that prices for secondary real estate are 2% higher than for new construction. The difference is small, but this indicates that there are enough buyers in Ibiza who want to purchase and use housing right now.