The impossible price of housing in Ibiza: second-hand property prices continue to rise

The price of second-hand housing in the islands has risen by 0.1% month-on-month and by 6.6% year-on-year, placing the average asking price for homes in May at 5,359 euros per square metre, according to data from Fotocasa.

This increase is also reflected in some areas of Ibiza included in the study: Ibiza municipality, where prices have risen by 3.5% compared with last year, and Sant Josep, where the increase stands at 1.1%.

Based on these figures, if the latest monthly price is multiplied by the 80 square metres of a standard home, the average value of a property in May comes to 428,725 euros.

“The Balearic Islands remain at the top of the price ranking, at 5,359 euros per square metre. Although their annual increase of 6.6% is one of the lowest in Spain this month, this is because the Balearic market is already starting from very strained price levels, where the capacity to absorb further rises is beginning to be limited by buyers’ purchasing power,” explained Fotocasa’s director of research, María Matos.

The Balearic square metre, the second most expensive in Spain

The archipelago is therefore the second autonomous community in Spain, behind Madrid, with the most expensive price per square metre.

The average price of second-hand housing rose in 13 of the 15 municipalities with year-on-year variation analysed by Fotocasa. These were Inca (35.5%), Son Servera (20.6%), Manacor (19.5%), Ciutadella (17.9%), Calvià (17.6%), Felanitx (13.4%), Andratx (9.5%), Alcúdia (7.5%), Llucmajor (6.4%), Palma (5.4%), Ibiza (3.8%), Sant Josep de sa Talaia (1.1%) and Ses Salines (0.3%).

By contrast, the only towns where prices fell year-on-year were Santa Eulària des Riu (-0.3%) and Campos (-2.8%).