PROPERTY MARKET IBIZA: REPORT 2024

asking prices in Ibiza have gone up by 84% in the past 6 years. Sant Antonio saw prices rising the most, 108%. The area of Ibiza Town and around saw the least growth, ‘only’ 29%. Owning a second home in Ibiza was popular for a little while, especially property in and around Ibiza Town was in high demand. When demand began booming, people started to look around on other areas of the island. In the end, nothing is more than 30–45-minute drive away. As well, changing lifestyle wants and needs have caused the more rural areas to become highly sought after resorts.

Where the total amount of homes sold in a year went down by 64% in the previous crisis (2007-2013), home sales in Ibiza went down by 35% and regained their pace within 2 years after the crisis. Spain in total is still struggling to reach pre-crisis levels. However, this huge amount of interest in the market comes with a set of struggles for the island as well. Affordable housing for service providers is in the danger zone… Receiving yearly 3-4 million of “guests” on an island with 160.000 takes it toll on utility networks for electricity, water and sewage… Don’t rent your apartment to tourists… If you stick to the rules of the island and, have a contribution mindset, you will be welcomed with open arms. For 2023, we expected a little softening of the market in terms of prices and amount of sales. However, declines were less than expected… “Only” 10% after boom years 2021-2022. For 2024 we expect the market to stay strong.

Who is actually buying property in Ibiza? Tourism is a big driver of the island economy. There are 20 times more tourists coming to the island, than the actual size of the registered population. A part of which are considered ‘tourists’, own a second home in Ibiza. They visit the island on a regular base, especially when there are good direct flight options. Also the increased number of direct flights in the typical low season (November-March) from and to the bigger cities on the mainland, France, The Netherlands, Germany and the UK cause many ibiza-lovers to buy a second home.

Slowly we see the low season and mid season coming closer to each other. In short, winters are not like 2010 anymore. Nowadays, you will find a vibrant culture with people seeking sports and leisure time… New Years in Ibiza… Almond Walks followed by a BBQ… Stylish Bingo Nights at the Standard… Hikes organized by Ibiza Walking and Dinner Party nights at Roto Ibiza.

Tip: When looking for a property that is ready for all-year-round trips, make sure properties offer the comfort for all year-round living. Some properties are less made for it due to basic heating systems or humidity issues.

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%. 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.