PROPERTY MARKET IBIZA: REPORT 2025

In 2017, the average price per m² for properties on the market was €4,043. By 2025, it has risen to €7,043/m2. This increase is partly due to rising property values—€1,000,000 buys much less today than it did in 2015. But it’s also influenced by the composition effect. Fewer properties are available below €700,000, which pushes the average price higher. A little note for property valuations; historical price data for Ibiza is limited, so we rely on price trends, news, and urban law updates rather than exact €/m² values.

Since 2019 – the year before corona – the average asking prices have increased by 47%. The biggest jump was in Santa Eularia, with a 75% rise. In Eivissa, prices increased by 23%. San Antonio followed Santa Eularia with a 61% rise, though its reputation still affects demand. Sant Joan sees the highest prices per m2. This doesn’t mean the most expensive houses can be found here, but there are just a few apartments (pushing m2 prices down) available in this area. Still demand has grown massively in this area over the years, so the price trend is up here as well.

Property sales dropped by 10% in 2024 compared to the previous year. After the post-COVID boom, prices rose so fast that many buyers found it hard to believe and were expecting some sort of bubble to burst. This led to a slowdown. Since mid-2024, sales have picked up again as sellers accept offers and buyers realize they can negotiate—something almost impossible in 2021-2022.

For 2025, I expect more sellers to adjust prices by 5-10% or buyers to make offers 15-20% below asking price. Just note that not every sellers elevates the prices, especially when they ar3e really looking to sell instead of testing the market. A good real estate agent can help you assess a property’s value in relation to its price. 

Are property prices going down? No. But some buyers say they’re seeing prices drop on property portals. What’s really happening? Sellers who were testing high prices are now adjusting to reality. Those who truly want to sell are making logical price reductions, the difference between wishful pricing and serious selling.

Who is actually buying property in Ibiza? Tourism is a major driver of the island’s economy. Each year, the number of tourists visiting Ibiza is 20 times greater than the registered population. Among these visitors, a significant portion—technically considered ‘tourists’—own a second home on the island. They frequently return, particularly when convenient direct flights are available. And, those are increasingly available in low season from major cities in Spain, France, the Netherlands, Germany, and the UK. This has encouraged many Ibiza enthusiasts to invest in second homes.

Slowly, the gap between the low season and mid-season is narrowing. In March 2025, direct flights on many routes will begin three weeks earlier than in 2024.

In short, winters in Ibiza are not what they were in 2010. The island now offers a more vibrant culture that attracts people looking for sports, leisure, and social experiences. Think New Year’s in Ibiza, almond walks followed by a BBQ (Calcots), Bingo nights at The Standard, hikes organized by Ibiza Walking, and dinner party nights at Roto Ibiza.

Tip: If you are looking for a property suited for all-year-round living, ensure it provides the necessary comfort. Some homes may be less suitable due to basic heating systems or humidity issues, so it’s essential to choose wisely for all-season trips.

If you plan to finance your future property purchase with a mortgage from a Spanish bank, we can tell you that mortgage rates are still historically low. However, while not as cheap as 3-4 years ago, average loan rates are still about 3,5%. Banks will finance approximately 60-65% of your property purchase if you are financially stable. Banks will not finance the property purchase taxes/costs, which are approximately 9% for a €500.000 apartment and increase to approximately 12-13% for a €5.000.000 villa.

Ibiza’s economy is driven by the tourism industry. As a result, the type of accommodation tells a lot about the type of guest. The graph below depicts the distribution of hotel licenses across various star rating accommodations. Just 15 years ago, there wasn’t much high-end accommodation. High-end partygoers would primarily stay in private accommodations and villas and come here solely for the party. Since 2006, a lot has changed. With the introduction of better restaurants and the branding of Ibiza as a legitimate gourmet and sporting destination (rather than just a party island), we have seen the lower star accomodation change to 5* locations.

Please note: the latest data available on this topic is from 2022. :/ more data on local business can be found on Ibestat.