The Ibiza property market demonstrated remarkable resilience through 2024, maintaining its status as one of Spain’s most robust and premium real estate destinations. Property prices on the White Isle reached record highs last year, even as transaction volumes showed a slight cooldown.
This subtle shift has many prospective buyers wondering: is 2025 a favourable time to invest in Ibiza property? In this updated analysis, we review the latest sales trends, price developments, buyer profiles, and expert forecasts to determine if current conditions make 2025 a good time to buy a home in Ibiza..
The General Balearic and Spanish Property Market Over the Past Decade and in 2025
The Balearic Islands and broader Spanish property market have shown impressive resilience and sustained growth over the past decade. After reaching a post crisis peak in 2017, prices and sales remained relatively steady, only dipping slightly in 2019–2020 amid broader global uncertainties. Subsequent to the pandemic, there was a renewed surge in buying activity, with 2021–2022 marking a boom in sales and price acceleration.
In 2024, however, the market began to recalibrate. Sales volumes across the Balearics declined by approximately 2.5%, even as prices continued to rise, with average home prices in the region climbing by 9.4% on an annual basis, the highest increase in all of Spain. This indicates a market in transition: less frenzied than before, but still robust. Experts suggest that this shift allows for a healthier and more sustainable pace moving into 2025.
Although the volume of transactions has softened, demand for property, especially in upscale areas like Ibiza, remains high, driven by low supply, lifestyle appeal, and international investment interest. For buyers and sellers alike, 2025 presents a more balanced environment than recent years, where thoughtful deliberation and market awareness can offer real advantages.
Ibiza’s Luxury Housing Market 2025 with Prestige Properties
Amidst ongoing geopolitical and economic uncertainty, Ibiza’s luxury housing market continues to demonstrate impressive strength. As one of Europe’s most desirable destinations, Ibiza continues to see strong demand from international buyers seeking a lifestyle investment with proven durability.
The market is progressing at a more measured rate, with values continuing to increase and buyer interest remaining strong. The average price per square metre now exceeds €7,000, with prime luxury villas in standout locations commanding well over €10,000 per m². Compared to 2018, this represents an overall price growth of approximately 17%, reflecting both the island’s exclusivity and the enduring appeal of its real estate market.
While transaction volumes dipped slightly in 2024 compared to the recovery upswing of 2021–2022, the market remains stable. Buyers have become more discerning, and many sellers have responded by adjusting their asking prices. The result is a shift towards a more balanced market, with greater room for negotiation and more realistic pricing strategies emerging across the board.
Our Prestige Properties Ibiza’s sales data from 2024 calculated:
Around 18% of buyers in 2024 purchased a first home, reflecting Ibiza’s shift from seasonal retreat to primary residence.
Over 50% of purchases in 2024 were second homes, continuing the island’s tradition as a holiday haven for global buyers.
Buyer enquiries declined by 17% annually, from 2,800 in 2023 to 2,300 in 2024, indicating a normalisation following record demand.
Despite these shifts, the luxury segment is still thriving, especially in exclusive locations where scarcity of supply and strong rental yields support prices. Our specialists report that attractive, competitively priced homes continue to sell quickly, with more than half of their listings closing in under three months in 2024.
Our 2025 Forecast: Is Now a Good Time to Buy a Property in Ibiza?
As we move further into 2025, Ibiza’s real estate market appears more balanced and mature than in recent years. While the strongly seller-focused conditions of 2020 to 2022 have eased, the island remains one of Europe’s most stable and appealing property markets, particularly for lifestyle buyers and enduring investors.
Current trends point towards continued price stability with moderate growth, particularly in the prime segment. Experts anticipate a five to ten percent price increase over the remainder of 2025, supported by sustained international demand, extremely limited supply, and Ibiza’s sustained lifestyle appeal.
Although sales volumes have softened slightly, this recalibration is widely viewed as a healthy correction, allowing both buyers and sellers to reconnect with more clarity and flexibility. Buyers are no longer facing the competitive rush of previous years, and sellers who price their properties realistically are still achieving strong outcomes.
Its consistent performance over time continues to set Ibiza apart. Even during broader economic slowdowns, the island’s property values have steadily rebounded, often surpassing previous peaks. For patient capital investors, this pattern offers reassurance that any temporary market fluctuations are unlikely to undermine Ibiza’s fundamental value.
Whether you are planning for retirement, a second residence, or an investment with strong rental potential, 2025 presents a compelling opportunity. Buyers now benefit from greater negotiating power, a wider selection of properties, and a market environment that has moved away from unsustainable intensity. At the same time, they gain access to one of Europe’s most coveted property destinations.
As always, we recommend keeping up with current market developments, working alongside knowledgeable local experts, and aligning your decisions with your personal goals and prolonged strategic outlook. With the right preparation, 2025 could be the ideal year to secure your place in Ibiza’s thriving property market.
We would be more than happy to talk you through Ibiza’s Real Estate potential.
Do you have any questions or need more info? Send us a message and we will get back as quickly as possible!
Why U.S. Citizens Should Diversify Their Real Estate Portfolio by Investing in Ibiza, Spain
As international real estate continues to attract forward-looking investors, many U.S. buyers are expanding their horizons to include dynamic overseas markets. Destinations like Ibiza offer an appealing balance of financial potential and elevated lifestyle.
Diversifying a property portfolio internationally can be a savvy strategy for preserving and growing wealth, particularly when targeting a stable and desirable destination. European real estate, with Ibiza (Spain) taking the lead, presents a distinctive blend of financial opportunity and lifestyle appeal.
This Balearic Island-jewel, famed for its breathtaking Mediterranean landscapes and refined way of life, has emerged as a strategic safe haven for Americans aiming to hedge against domestic volatility.
Far removed from its former party centric image, Ibiza has matured into an ongoing upscale enclave that resonates with affluent individuals, seasoned buyers, digital nomads,and international retirees alike. In this article, we explore why U.S. citizens should consider broadening their property holdings by investing in this coveted corner of Europe, delving into market insights, investor incentives, and the unmatched allure of Ibiza’s property scene.
International Diversification in Uncertain Times
The United States has experienced a turbulent few years, from deep political division and shifting policies to economic pressures such as inflation and market instability. This climate has underscored the value of diversification beyond a single domestic market. By expanding property portfolios internationally, Americans can reduce exposure to domestic risks and access regions that may offer stronger performance or act as financial sanctuary when conditions in the U.S. become unfavourable.
One compelling destination is the Spanish real estate sector, which has seen a notable uptick in American interest. In fact, the number of Spanish property purchases by Americans has quadrupled over the last five years. Wealthy U.S. buyers are making their presence felt, often paying premium prices for prime properties, often nearly 30% more than other foreign buyers.
Leveraging Currency and Political Trends for Smarter Investment
Several key factors are contributing to the growing appeal of international property among U.S. citizens:
Currency Advantage
As of late 2024, 1 USD equalled approximately €0.94, enhancing Americans’ purchasing power in Europe.
This favourable exchange rate makes property in Ibiza more economical now than in recent years.
For U.S. home seekers, this effectively translates to a relative price advantage on European real estate
Political Uncertainty as a Motivator
Ongoing concerns around U.S. elections and shifting policies have prompted many to explore more stable international investment opportunities.
Spain presents a stable and supportive setting for those seeking to invest, providing:
A democratic government within the European Union
A strong, reliable currency
Robust property ownership rights
As a result, many Americans turn to international markets like Spain to preserve their wealth and reduce exposure to regional market shifts.
Why Ibiza Specifically?
Ibiza’s property market is notably resilient and operates independently of U.S. real estate cycles.
Adding Ibiza property to a portfolio offers:
Diversification benefits
Protection from U.S. market fluctuations
Access to new avenues for growth
Ibiza: A Strategic Entry Point into European Real Estate
The charming streets of Ibiza Town’s old quarter (Dalt Vila) exemplify the island’s blend of history, culture, and uninterrupted lifestyle appeal. Far beyond its past reputation for only nightlife, Ibiza has evolved into an enduring paradise, and one of Europe’s most attractive real estate markets for 2025 in terms of both quality of life and investment potential.
Unlike seasonal resort areas, this coastal enclave now boasts a growing permanent community and the infrastructure to support residents in every season. Enhanced international accessibility, alongside upscale dining, wellness retreats, and international schools, has made the island liveable throughout the year.
In addition to existing transatlantic flights connecting New York and Palma de Mallorca, local authorities are actively pursuing a direct route between Ibiza and the United States, supported by rising numbers of American visitors and ongoing discussions with airlines and US hotel groups. Although the launch may be delayed until 2029 due to aircraft availability, the mutual interest suggests strong, enduring potential for transatlantic connectivity.
With this in mind, now represents a particularly strategic moment for transactions, as property values and associated costs are expected to rise considerably once direct flights are in place.
Global Appeal and Exclusivity
Ibiza’s reputation has evolved into that of an upscale lifestyle hub that attracts a cosmopolitan audience. The island consistently ranks among the leading destinations for individuals of substantial wealth across the globe. According to Knight Frank’s 2024 Wealth Report, Ibiza holds a firm position within the top ten global prime residential markets, with elite housing prices rising by 12 per cent over the most recent year.
In other words, this Balearic destination is on the radar of premier investors globally, a testament to its quality. Part of this allure lies in Ibiza’s exclusivity: it’s a relatively small island with finite land and strict planning laws, which keep development in check. This creates a supply shortage for property, especially top residential villas, that in turn supports sustained price appreciation.
With only a finite number of sea-view plots and historic fincas available, owning property in Ibiza equates to holding a share of an exceptionally scarce asset, one that remains highly sought after by the world’s affluent.
Lifestyle and Environment
When it comes to lifestyle, Ibiza is truly unparalleled. The island enjoys over 300 days of sunshine a year, beautiful turquoise Mediterranean waters, and 210 kilometres of coastline ranging from sandy beaches to dramatic cliffs.
While it still offers legendary nightlife for those inclined, Ibiza also provides tranquillity and natural beauty; hills blanketed in pine trees, organic farms, yoga retreats, and secluded coves. Many visitors are surprised to discover how welcoming to families and peaceful Ibiza can be beyond the renowned clubbing hotspots.
U.S. retirees and families appreciate the Mediterranean pace of life here: long lunches on terraces with stunning views, local markets offering fresh produce, and a strong sense of community. In fact, large sections of the island are protected as UNESCO World Heritage Sites. This balance of vibrant culture and preserved nature makes this white isle an ideal place to enjoy both refined entertainment and tranquil relaxation.
Strong Tourism and Rental Demand
Another reason Ibiza shines is its global appeal as a tourism hotspot. It remains one of Europe’s most popular spots for upscale travellers, attracting international visitors from May through October for music festivals, beach clubs, and wellness retreats. Even during the quieter winter months, a growing number of off-season tourists and remote workers help keep the island vibrant. This consistent flow of guests supports a strong and resilient rental market.
For wealthy Americans entering the European property market, Ibiza’s prime summer returns are especially enticing. Premium villas can command thousands of euros per week from holiday makers. Many owners choose to let their properties for part of the year to generate income, helping to offset expenses or deliver a return, while still reserving time for personal use. With upscale tourism thriving, investors increasingly view Ibiza as a premier destination for exclusive short term lettings, confident that the draw to financially established travellers will endure.
Ultimately, Ibiza’s global renown ensures that owning property on the island presents the potential for strong rental income as well as sustained growth in value over time.
Stable Performance with Promising Growth
For Americans exploring property investment in Ibiza, understanding the market’s core fundamentals is essential. The island’s real estate sector has consistently demonstrated both stability and impressive growth, even amid global uncertainty. Recent figures highlight just how distinctly Ibiza continues to perform:
Post-Pandemic Stability
After a surge in sales post-COVID, activity cooled slightly by 2023, yet prices remained stable and even exceeded 2022 levels, despite fewer transactions.
In 2024, Ibiza’s premium property sector thrived, affirming its role as a refuge for investment amid global uncertainty.
Proven Sustained Performance
Since 2018, prices per square metre have risen 17%, outpacing many mainland markets.
Following downturns (e.g., 2008 and 2020), Ibiza consistently rebounds, reaching new price peaks, signalling strong market resilience.
Temporary dips are often seen as buying opportunities by strategic investors.
Buyer Diversity Driving Stability
Attracts a broad mix of buyers: investors, digital nomads, entrepreneurs, retirees, and families seeking a better quality of life.
Over 75% of recent purchases are for second homes or holiday use, with expanding numbers relocating permanently for quality of life.
In 2024, 20% bought for investment, while 50%+ purchased for personal use, helping maintain demand from multiple segments.
Recognition as a Prime Market
Ibiza consistently ranks among the top global luxury property destinations, attracting sustained interest from high-net-worth buyers.
Foreign demand remains strong and steady, even amid broader economic uncertainty.
Recent tax reform in the Balearics, raising the wealth tax threshold from €700,000 to €3 million, makes ownership more attractive for investors with moderate budgets.
Why It Matters for U.S. Investors
Ibiza offers a stable, appreciating assets in a different cycle from U.S. property.
Combines limited supply with consistent international demand, shielding the market from volatility.
An ideal vehicle for diversification, offering both capital growth and long-term stability.
Key Benefits of Ibiza Property Investment for Americans
Stable Eurozone Investment
Placing capital in Ibiza gives U.S. acquirers access to the stability of the Eurozone, providing a safeguard against domestic economic pressures such as inflation and currency decline.
Why it matters:
Exposure to the euro offers currency diversification.
Spain’s economy is steadily recovering, supported by domestic and international demand.
In 2024, foreign buyers made up nearly 20% of residential sales in Spain, with Ibiza as a direct beneficiary.
Spain has solid legal frameworks for property ownership.
Investors benefit from legal protection under Spanish and EU law.
Ibiza is seen as a safe jurisdiction for capital compared to emerging markets.
High Potential for Returns
Ibiza properties, particularly in the premium segment, have shown strong capital uplift over time:
Prime property prices increased by around 12% in a recent year.
Lasting trends point to continued value appreciation.
Temporary holiday rentals generate significant income, especially during peak season.
Bonus for U.S. investors:
Rental income in euros helps hedge against currency fluctuations.
Ibiza compares favourably with luxury markets in the U.S. and Europe.
A $1 million investment secures approximately 50 square metres of premium space, often with access to exclusive leisure facilities.
Lifestyle Perks & Personal Use
Unlike stocks or bonds, a home in Ibiza is a tangible asset you can enjoy.
For U.S. buyers:
A holiday home and a smart investment in one.
The potential to transition into a retirement base or ongoing residence.
Access to Mediterranean living, wellness culture, and advanced health care provision.
Prestige & Global Network
Owning property in Ibiza places you among a globally connected, influential community:
Ibiza is home to celebrities, creatives, and entrepreneurs.
The island furnishes social and networking opportunities beyond financial returns.
Property ownership here carries global prestige and opens social doors.
Tax & Financial Advantages
Spain offers a favourable tax environment for foreign buyers when compared to other EU countries and many U.S. states, with several financial incentives.
Key benefits:
No wealth tax on properties under €3 million (post-reform).
Modest annual property tax (IBI), often lower than in many U.S. states.
Double tax treaties help avoid being taxed in both countries.
Access to Spanish mortgages up to 60–70% Loan-to-Value (LTV) for non-residents.
Financing tips:
Interest rates in Spain are often lower than in the U.S.
Some buyers pay in cash or use U.S. based equity loans to manage currency risk.
No Restrictions for U.S. Buyers
Spain imposes no restrictions on American buyers, the process is straightforward and transparent:
Secure a Spanish tax number (NIE) and bank account.
Complete standard legal checks with local professionals.
Americans now make up a record number of property transactions in Spain.
Visas and Residency:
While the Golden Visa programme has ended, other extended residence alternatives are available:
Passive Income Visa
Digital Nomad Visa
No visa needed for stays under 90 days in the Schengen Zone.
Ideal for Retirees and Lifestyle Seekers
Ibiza offers a compelling option for American retirees or those planning ahead for a Mediterranean lifestyle enriched by comfort, belonging, and culture.
Outstanding Quality of Life
Spain consistently ranks highly in global standards of living reports, and Ibiza embodies many of its best qualities: a mild climate, Mediterranean cuisine, a relaxed pace of life, and a strong sense of community. With long outdoor meals, vibrant local markets, and a culture that prioritises health and leisure, the island naturally resonates with those seeking a slower, more fulfilling lifestyle.
Healthcare in Ibiza is both excellent and affordable. Residents have access to private clinics and modern medical facilities, and may also benefit from public healthcare through a contributory scheme. This makes Ibiza a reassuringly affordable option for those mindful of medical expenses.
Welcoming International Community
Retirees are greeted by an inclusive, globally minded circle of residents. English is widely spoken, and there are active expatriate networks made up of Americans, British, Germans, Dutch, and others. These communities provide social events, support, and shared cultural activities, making it easy to integrate and feel at home. Whether you prefer a peaceful rural setting or a lively coastal village, Ibiza offers diverse options to suit individual preferences.
Active and Enriching Lifestyle
Far from a passive retirement destination, Ibiza encourages an active and engaging lifestyle. Swimming, hiking, sailing, and yoga are all popular, and the island has developed a reputation as a wellness hub. Spas, organic farms, and holistic retreats provide countless opportunities for physical wellbeing and peace of mind. In addition, Ibiza’s cultural calendar is rich with art exhibitions, music events, and traditional festivities that keep life vibrant throughout the year.
A Haven for Digital Nomads and Remote Workers
Ibiza has become an increasingly attractive base for American remote professionals, offering the perfect blend of daily rhythm, infrastructure, and legal accessibility:
Digital Nomad Visa
Spain introduced the Digital Nomad Visa in 2023, allowing U.S. citizens who work remotely for foreign clients or employers to reside legally in Ibiza. The visa offers an initial one year stay, often extendable, and provides a pathway to longer term residency. With a moderate income threshold, it is accessible to a broad range of freelancers, entrepreneurs, and remote employees.
Practical Infrastructure for Work
While known for its natural beauty, it is also equipped for productivity. The island offers widespread high speed internet, including fibre connections in rural areas, and reaffirming its role as refuge for investment working spaces in hubs like Ibiza Town and Santa Eulària. Even cafés and coastal venues often provide reliable Wi-Fi.
Thanks to the time zone difference between Spain and the United States, living in Ibiza offers a particularly appealing rhythm for those working remotely or managing business across the Atlantic. Depending on which part of the U.S. they’re based in, many Americans find their working day begins in the mid to late afternoon local time, allowing for relaxed, productive mornings, school runs, or time outdoors before starting work.
This natural offset makes the island an ideal base for balancing professional commitments with a Mediterranean lifestyle, and enhances its reputation as a truly liveable location throughout the year.
The Culture of Creation
Ibiza offers more than functionality, it inspires. Surrounded by nature and a diverse international community, many remote workers report increased wellbeing and creative energy. Daily life includes swims in turquoise waters or peaceful walks through pine forests instead of urban commutes, helping spark innovation and self-development.
A Family Friendly Setting
For remote workers with families, Ibiza is notably accommodating. The island hosts respected international schools and safe, welcoming neighbourhoods like Santa Gertrudis and Santa Eulària. Children benefit from an active outdoor lifestyle and clean environment, while parents find a supportive, like minded community.
Practical Considerations for Buying in Ibiza as a U.S. Citizen
If the idea of owning property in Ibiza as an American sounds tempting, it’s helpful to understand the useful steps involved and what to expect from the process:
Prices vary widely by location and property type. As a general guide, flats (apartments) might start from €300,000, with luxury units exceeding €1 million. Villas typically begin at around €1.5 million and can exceed several million euros for premium estates. American buyers are known to pay top euro for luxury properties, a clear signal of their confidence in Ibiza’s value.
The Buying Process
Purchasing property in Spain is relatively straightforward. Key steps include:
NIE Number: You’ll need a Número de Identificación de Extranjero (NIE), which serves as a tax ID for foreign nationals and is essential for any property transaction.
Bank Account: Opening a Spanish bank account is advised to facilitate the transaction and manage ongoing expenses.
Reservation and Contract: Once you’ve chosen a property and agreed on a price, a deposit (typically 10%) is paid to reserve the property. This is followed by a private purchase contract, during which due diligence is carried out.
Legal Checks and Notary: A Spanish solicitor proficient in English should review all documents, ensure no debts or liens are attached to the property, and confirm that licences (such as a tourist rental licence) are in order if applicable. Completion of the sale occurs in front of a notary, where the title deed is signed and the balance paid.
Expect closing costs of approximately 10–13% of the purchase price, including transfer tax (8–10% for resales, or 10% VAT for new builds), notary and registry fees, and legal services.
Financing vs. Cash
Spanish banks do offer mortgages to non-residents, usually covering 60–70% of the property’s value. Borrowers must demonstrate income and creditworthiness. Interest rates fluctuate, but may still be competitive with U.S. lending rates. Some American buyers choose to pay in cash or utilize equity from U.S. assets to avoid exchange rate risk.
The strong dollar in recent years has enhanced American purchasing power, making now an especially favourable time to acquire property in euros.
Rentals and Management
Renting out your Ibiza property can be lucrative, especially during the summer season. However, tourist rentals require a licence, typically granted to detached homes or villas rather than flats (apartments) in shared buildings. It’s important to confirm licence eligibility before purchase if temporary letting is part of your plan.
Many owners enlist local property managers to oversee bookings, guest relations, and maintenance. Management fees are usually 20% of rental income but are often offset by strong yields during peak months.
Tax Obligations
As a non-resident, you’ll pay local property tax (IBI) and tax on any rental income, net of deductible expenses. Additionally, there is a nominal imputed income tax on second homes not let out. Thanks to the U.S.–Spain double taxation treaty, most investors can offset Spanish taxes against their U.S. obligations, minimising exposure.
International tax advice is recommended, especially in the first year. But generally, owners find Spanish property taxes reasonable compared to jurisdictions in the U.S. with higher tax rates.
Buying property in Ibiza as a U.S. citizen is entirely achievable and increasingly common. With expert guidance and sound preparation, the process is smooth and transparent, allowing you to focus on enjoying your Mediterranean home and maximising its potential.
Why Now Is the Time to Invest in Ibiza
In today’s climate of economic and political volatility, expanding into international property is more than a smart decision, it’s a strategic one. Ibiza stands out as a rare market that combines strong financial potential, extended security, and an enviable quality of life.
For U.S. citizens, investing in Ibiza offers more than just ownership abroad. It provides access to the European lifestyle, protection from domestic market volatility, and a stake in one of the world’s most desirable real estate markets.
The island’s premium property segment continues to thrive, fuelled by limited supply, consistent global demand, and a rising international profile. Whether you’re planning for retirement, working remotely, or seeking a family home with income potential, Ibiza stands out as a versatile destination that continues to attract interest thanks to its upscale property landscape.
Favourable tax structures, accessible visa options, and the strong U.S. dollar further enhance the opportunity, making this an ideal time to act.
Before making a purchase, it’s essential to have a clear understanding of your investment goals, timeframe, and risk tolerance. Whether you’re seeking a second home, a pure investment, or a blend of rental income and personal use, defining your objectives will help guide smart decisions.
Partnering with a trusted local real estate agency like Prestige Properties ensures you’re connected to the right network of experts (lawyers, mortgage brokers, and legal advisors) who can guide you through every step. Local professionals will help confirm legal compliance, funding options, and property suitability to match your investment strategy.
Key factors to consider include:
Location and type: Target areas with high demand, good rental potential, or long-term appreciation. Decide between residential and commercial use based on your goals.
Legal compliance: Always ensure the property has the proper licences and follows zoning and planning regulations.
Financing and paperwork: Local mortgage availability, funding strategy, and ensuring all documentation is in order are key to a smooth transaction.
By approaching your property search with a structured plan and the right professional support, you’ll be well positioned to make a confident investment in Ibiza.
With expert guidance, legal clarity, and a strategy tailored to your goals, your purchase can be both financially rewarding and personally fulfilling, whether it’s a lifestyle choice, a lasting asset, or a combination of both.
Do you have any questions or need more info? Send us a message and we will get back as quickly as possible!
Ibiza & Balearic Island Real Estate Market Report 2024 & Forecast 2025
In 2024 Ibiza’s luxury real estate market has once again proven its resilience and an ability to adapt, reinforcing its reputation as one of the world’s most sought-after investment destinations. In line with our predictions in last year’s market forecast, 2024 marked a slight transition towards a buyer’s market —while prices remained high, the supply of available properties increased, and demand showed signs of stabilising.
On the other hand, our prediction of stabilising sales numbers were met with a surprise increase in sales numbers and volume, at least here at Prestige Properties. Despite global economic uncertainties, shifting geopolitical landscapes, and financial market fluctuations, the island, perhaps not surprisingly, continues to attract high-net-worth investors, international buyers, families, and lifestyle-driven homeowners seeking this perfect mix of security, exclusivity, and high-value assets not many places offer.
Balearic Islands’ Housing Market 2024
The Balearic Islands—particularly Ibiza—have consistently demonstrated their strength in overcoming market downturns, emerging stronger with each cycle. A combination of relative market stability, evolving buyer preferences, and sustained demand has shaped the property industry in recent years, making the Balearic Islands, and specifically Ibiza, a prime location for real estate investment.
2024 marked a year of stabilisation for property sales in the Balearic Islands. Graph (I) below, shows that after the post-COVID peak in 2022, 2023 saw a decline in property sales, which then stabilised in 2024, returning to pre-COVID levels.
Who buys property in Ibiza?
The Ibiza market presents exciting opportunities for investors and other types of buyers alike. With a limited yet highly desirable property supply, Ibiza remains a safe haven for both short and long-term investment. As Ibiza further solidifies its global position as a premier real estate destination, new possibilities await those looking to secure a stake in this thriving market. Whether as a second home, a secure long-term asset, or a high-yield investment, Ibiza offers unparalleled opportunities in 2025 and beyond.
As our internal statistics show, in 2024 over half our clients were buyers of "Second homes" ( or holiday homes) to enjoy with their family and friends. A new trend this year was a significant increase in "First Home" buyers, which in this context refers to buyers buying property which they will use as their primary residence and not just a holiday home. This is in line with Ibiza attracting an ever increasing clientele of international families choosing to permanently settle on the island, and seeing their children grow up in nature, sun and beach proximity.
Clients whose sole reason for buying is for "Investment Purposes" keep strong at over 20% of all buyers.
As mentioned above, Ibiza’s property market has consistently showcased exceptional durability and flexibility, elevating its profile as a hotspot investment center. This enduring robustness stems from several elements that collectively uphold the island’s real estate sector.
Luxury and lifestyle properties remain in high demand, attracting affluent buyers from Europe and beyond, drawn to Ibiza’s natural beauty, high-end amenities, and vibrant cultural scene. At the same time, strict urban planning regulations and limited land availability help control excessive growth and prevent market over-saturation.
Some Stats & Figures for 2024 – by Prestige Properties Ibiza
Analysing the properties Prestige Properties sold in 2024, we calculated the following:
Island-wide average price per m² in 2024: €7,333
Price range per m²: €5,000 – €17,000, depending on property type, condition, and location.
A breakdown of average price per m² by property type further highlights how different segments of the market performed in 2024:
Apartments: €6,515 per m², average price: €647,721
Houses: €7,558 per m², average price: €1,556,264
Fincas: €10,100 per m², average price: €5,758,333
Luxury Villas: €10,212 per m², average price: €7,118,750
Below a breakdown of Prestige Properties’ buyer nationalities in 2024:
Internally, we celebrated a record-year with regards to the Sales Volumes achieved in 2024:
We also achieved our goal of reducing the average time to find an ideal buyer for a property, beating the island’s historical average of 9 months:
Average time to sell a property in 2024: 7 months.
More than 50% of our properties were sold in under 3 months
Most of our properties found a buyer within 2 months of entering the market
A Market in Transition: Moving Toward a Buyer’s Market?
Following a sustained period of high demand and restricted property accessibility, Ibiza’s real estate landscape is undergoing a noticeable shift. While it remains a stronghold for luxury property investments, 2025 is shaping up to be a turning point, moving away from an extreme seller’s market towards a more balanced perspective.
Though high prices still define the market, the supply of available properties has increased, and demand has slightly declined. Although not yet fully a buyer’s market, emerging trends indicate that change is on the horizon while the scene is evolving:
Buyer Leads in 2024: 2,300 (compared to 2,800 in 2023), indicating a slight drop in demand.
Increased Listings: More properties entered the market in 2024 compared to 2023, contributing to greater buyer options.
But what does this mean for Ibiza buyers and sellers alike?
For sellers, Ibiza’s housing scene still presents significant advantages. Prices remain historically high, making now an ideal time to sell before further market adjustments take effect. Properties in prime locations and excellent condition continue to attract potential new owners quickly, with many deals closing in under three months. While demand has slightly softened compared to previous years, high-value properties remain desirable, particularly among investors seeking exclusive assets.
For buyers, 2025 introduces new opportunities as increasing inventory brings greater choice. Unlike the highly competitive seller’s market of 2022–2024, enthusiasts now hold more negotiating power, offering them better flexibility in securing favorable deals. With the ongoing increase in availability, investors and homebuyers alike may find more diverse options and improved conditions in the coming year.
Looking ahead, Ibiza’s property industry remains dynamic and full of potential. Whereas sellers can still capitalise on high prices, buyers are gaining leverage, creating a healthier equilibrium between supply and demand. As the real estate sector experiences steady growth, it will be necessary for both parties to stay adaptable as we move through this transition.
Looking Ahead: What to Expect in 2025?
Ibiza has long been recognised as one of Europe’s most desirable real estate industries, attracting those seeking exclusive properties, high-end living, and a vibrant lifestyle.
As we move into 2025, the housing trade is evolving with new trends shaping the future of the market. While uncertainty remains in global economic and political spheres, Ibiza’s reputation as a premium housing sector destination remains steadfast. The aforementioned shifting dynamics will have a significant impact on home seekers, capital investors and real estate agents in the year ahead.
Although predicting the future is never an exact science, current field data provides valuable insights. The key trends from 2024 indicate a stabilising market with a slight turn toward increased stock and more opportunities for prospective clients. However, external factors will play a crucial role in shaping the real estate overview for 2025 and beyond:
Economic and geopolitical influences: Interest rates fluctuations, ongoing global conflicts, and international policies will play a role.
Increased stock availability: More listings mean more options for buyers, potentially softening prices.
Increased recognition of Ibiza as a key player in global real estate, uniquely combining political stability, natural beauty, and expanding infrastructure to attract families and discerning international clients.
What remains certain is that Ibiza’s real estate spectrum has a long history of persistence. Even during economic transitions, property values have demonstrated a strong ability to rebound, often surpassing previous highs. This makes the island a desirable, multicultural, and highly sought-after location for investors looking for long-term stability and expansion.
A Thriving Market with Enduring Opportunities
As 2025 unfolds, the island remains a place where real estate dreams become reality—and with us by your side, those opportunities are closer than ever. With the right strategy and expert guidance, exploring this intricate environment becomes easier and more rewarding.
At Prestige Properties, we understand that navigating Ibiza’s evolving real estate market requires expertise and insight. Whether you are looking to sell at the right moment or to identify the optimal conditions to invest, our dedicated team is here to guide you every step of the way. With a deep understanding of the market and a commitment to personalised service, we help our clients make well-informed decisions that align with their financial and lifestyle goals.
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Reflecting on Ibiza’s Real Estate Market
Ibiza’s real estate market continues to attract global attention. Renowned for its stunning natural landscapes, cosmopolitan lifestyle, and vibrant cultural scene, it has long been a magnet for investors seeking luxury properties. As Ibiza’s property market reflects evolving trends, regulations, and economic shifts in 2025, a reevaluation of its trajectory is compelling.
A Resilient Market Despite Global Challenges
The global economy in 2024 faced ongoing uncertainties, including fluctuating interest rates and lingering supply chain disruptions. Yet, Ibiza’s real estate market has demonstrated remarkable resilience. Demand for high-end properties remains robust, driven by international buyers seeking both investment opportunities and lifestyle enhancements. In particular, northern European buyers and expatriates continue to dominate the market, drawn by Ibiza’s unique blend of natural beauty and exclusivity.
Sustainability Takes Centre Stage
Sustainability has emerged as a defining theme in Ibiza’s real estate development. The Balearic Islands’ government has implemented stricter environmental regulations, encouraging energy-efficient building practices and sustainable architectural designs. Developers are increasingly incorporating renewable energy sources, such as solar panels, and prioritising green certifications for new constructions. Buyers, too, are showing heightened interest in eco-friendly homes, reflecting a broader cultural shift towards responsible living. For a deeper dive into sustainable development in Ibiza’s real estate market, visit Ibiza Prestige’s Sustainability Guide.
Regulatory Landscape: Balancing Growth and Preservation
The Balearic government has introduced measures to preserve the island’s unique character and natural environment. In 2024, regulations surrounding property development have tightened, particularly in rural and coastal areas. To learn more about preservation efforts and green initiatives, including Prestige Properties’ Going Green Debris Campaign. Restrictions on short-term holiday rentals, for example, have been expanded to address over-tourism and its impact on local communities. While these changes may challenge investors focused on rental yields, they also help ensure long-term sustainability and exclusivity in the market.
The Rise of Digital Nomads and Year-Round Living
Ibiza’s appeal as a destination for digital nomads continues to grow. Enhanced broadband infrastructure and flexible work arrangements have enabled more professionals to relocate to the island. This trend is shifting the market towards year-round living rather than seasonal demand. Properties with home offices, reliable internet connectivity, and proximity to amenities are particularly sought after by this demographic. To learn more about why Ibiza is becoming a hub for digital nomads and year-round holidays, visit Ibiza Prestige’s Digital Nomad Guide.
Key Neighbourhoods and Market Trends
Certain areas of Ibiza remain perennial favourites, with Santa Eulalia del Rio and San José de Sa Talaia continuing to attract families and luxury buyers. Meanwhile, up-and-coming neighbourhoods such as Sant Joan de Labritja and Portinatx are experiencing renewed interest, thanks to their tranquil settings and relative affordability compared to the south.
The ultra-luxury segment remains buoyant, with villas boasting panoramic sea views, private pools, and extensive grounds commanding premium prices. However, 2024 also sees an increase in demand for boutique apartments and smaller, well-designed homes, reflecting a shift in buyer priorities towards manageable, energy-efficient properties.
Future Prospects: A Balanced Outlook
Looking ahead, Ibiza’s real estate market is poised to balance growth with preservation. The island’s enduring appeal as a luxury destination ensures continued interest from international buyers. However, developers and investors must navigate an increasingly complex regulatory environment while aligning with global trends in sustainability and digital transformation.
For prospective buyers and investors, 2025 offers opportunities to enter a market that is not only resilient but also forward-looking. Whether seeking a holiday home, a permanent residence, or a sound investment, Ibiza remains a destination where quality of life meets timeless allure.
As the island evolves, so too does its real estate market, promising a dynamic and exciting future for all stakeholders involved. For more information on purchasing property in Ibiza, visit Ibiza Prestige’s Buyer’s Guide.
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Breaking News: Mandatory Agent Registry Introduced to Regulate the Real Estate Sector in the Balearics
As of 9 November 2024, the Balearic Islands have implemented a mandatory registry for estate agents under Law 3/2024. This regulation aims to combat unqualified operators, protect consumers, and enhance professionalism within the property market.
Key Highlights:
Mandatory Registration: All agents must be officially registered with the Official Register of Estate Agents of the Balearic Islands to legally operate in property sales, purchases, and rentals. Consumers are encouraged to verify agents’ credentials by requesting their registration number.
Combating Unregulated Agents: The measure targets unregulated agents who distort the market with unrealistic pricing and lack proper qualifications, addressing a long-standing issue in Ibiza’s high-demand property market.
Consumer Protection: The law ensures safer transactions by guaranteeing that only trained, certified professionals can represent clients in significant financial decisions such as property purchases.
Enforcement and Penalties: The law includes penalties for non-compliance and calls for active enforcement to address unregulated practices. Industry leaders are also advocating for national-level regulations to ensure uniformity across Spain.
This move marks a significant step towards a more transparent, fair, and professional property market. For further insights, visit Diario de Ibiza’s full article here.
At Prestige Properties, we fully comply with these new standards, ensuring all our clients experience secure and professional services. Contact us today for trusted property advice in Ibiza!
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The Go-To Guide for Renovating Property in Ibiza
Renovating a property in Ibiza can be an incredibly rewarding experience. It offers the perfect opportunity to create a unique home full of character and personal style. With careful planning and management, a renovation can also result in significant returns on investment.
However, undertaking a major renovation is not without its challenges. A lack of preparation, analysis, and effective project management can lead to escalating costs and unwanted stress.
At Prestige Properties Ibiza, we believe that, with the right knowledge and team, the benefits far outweigh the risks. Whether you’re refurbishing a traditional finca or remodelling a modern villa, renovating a property in Ibiza is an exciting journey that is well worth the effort.If you’re considering purchasing a property in Ibiza with the intention of renovating it, read on for our comprehensive guide, Renovating a Property in Ibiza – Everything You Need to Know, which covers all the key steps to help you on your way.
What to Consider Before Renovating Property in Ibiza
"When considering any aspect of the property market in Ibiza, it is important to be fully informed. Renovating a home can be a complex process that can lead to unforeseen problems and costs, so being well prepared is key to any successful renovation project." – Robin van Den Driessche, Architect & Founder at Illot Studio
Renovations can be complex, often leading to unforeseen issues and expenses. Being well-prepared from the outset is crucial for a successful project.
Local real estate agencies typically have properties with renovation potential. However, securing a property through a trusted agent is only the first step. Finding one that meets your renovation ambitions and is in the right location is equally important.
If your project involves more than minor upgrades, such as installations or a new coat of paint, our top recommendation is to consult a qualified, local architect. Contrary to popular belief, an architect can help optimise costs, ensure high-quality workmanship, and manage contractors and suppliers efficiently. An architect also serves as the key figure in navigating legal and regulatory aspects, helping avoid costly pitfalls further down the line.
Key Steps for Successful Renovation in Ibiza
Legalities:
Analyse the property’s legal status: Ensure it has the proper original building licence from the Town Hall and that there are no unregistered sections. If there are, consult an expert architect to see what can be done based on their nature and construction year.
Assess the property’s potential within the local urban planning regulations: Determine the degree of intervention allowed, and identify whether and how much the property can be extended.
Effective Planning:
Assess the current state of the property, including its structure and installations.
Define the renovation scope and explore possible improvements.
Secure the necessary permits and licences from the local Town Hall.
Obtain an accurate estimate of total costs and project timelines.
Execution and Control:
Once works begin, ensure they are carried out to a satisfactory technical standard. More extensive renovations require on-site management to coordinate tradespeople and ensure deadlines are met.
Before After
1. Structuring Your Ibiza Home Renovation
Renovation & Construction Works and Construction Surveys
Before any physical work begins, having a clear, long-term vision is essential. Investing time upfront in a detailed and well-thought-out plan will allow you to secure accurate estimates and avoid rushed decisions, ultimately leading to a cohesive, well-executed home renovation.
Renovation & Construction Surveys
In many cases, the full scope of a renovation project cannot be determined until after the property has been purchased and a proper evaluation of its structural integrity has been carried out. A thorough building survey will help you identify both superficial and structural works that may be necessary.
This assessment will then guide architects and contractors as they carry out the work. Bear in mind that structural issues may increase your budget, but identifying them early allows for better planning and decision-making.
In Spain, construction surveys are typically conducted by architects or technical architects.
BeforeAfter
2. Choosing the Ideal Architects and Construction Team
As mentioned earlier, engaging an architect is not a luxury but a necessity. The absence of professional oversight can lead to legal and construction problems, cost overruns, and delays. An architect like Robin van Den Driessche from Illot Studio brings invaluable expertise, not only in design but also in project management and compliance with Spanish building regulations.
When selecting an architect or contractor, always ask for references and view their past projects. Before-and-after images provide a clear insight into their ability to transform spaces and the quality of their work. If they come recommended by someone you trust, all the better!
Extra Tip from Robin:
"Conduct a quantity survey of the work to compare quotes from different builders. Without it, unexpected costs may arise, increasing your final budget unnecessarily."
BeforeAfter
3. Crafting a Well-Structured Timeline
Renovation timelines in Ibiza can vary significantly depending on the project’s complexity and location.
Permits and Licences
Permit approval processes depend on the type of renovation and the land category. For example, simple interior works with a "Previous Communication" can start immediately. In contrast, structural changes or extensions may require an Urbanistic Licence, which could take anywhere from months to years depending on whether the land is urban or rustic.
Securing professional advice early on is crucial to avoid delays.
Design Time
If structural modifications are involved, the Town Hall requires an architect’s technical project before granting the relevant permits. For a comprehensive renovation of a 200-300m² house, it may take about a month for the architect to complete the design.
Execution Time
Execution time will depend on the project’s complexity. A full renovation of a 200-300m² home can take around 6 to 8 months.
4. Financial Considerations for Property Renovation
Renovations can be more costly than anticipated. In most cases, buying a second-hand home requires significant investment in essential areas like the structure, façades, and installations—costs that are often overlooked in favor of aesthetic upgrades.
Accurate Estimates
Getting an accurate cost estimate before work starts is crucial but challenging. Costs can only be fully understood once the project is underway and the property’s structural condition is thoroughly assessed.
Ongoing & Extra Costs
Regardless of your budget, always allow for a margin to cover unforeseen issues that arise once work begins. Consider costs such as site preparation, professional fees, installations, landscaping, and taxes. Clarify whether the quotes are fixed or estimates, as these could increase once the project is underway.
5. Legal Details: Local Legislation and Regulations
Before starting your renovation, it’s essential to understand Ibiza’s complex urbanistic laws and regulations. Small works may require a declaration or permit, and an architect will need to guide you through this process to ensure compliance with local legislation.
For example:
Simple renovations like covering replacements may only require a "Previous Communication."
Structural changes or façade modifications will need an Urbanistic Licence.
Since the COVID-19 pandemic, a "Declaration of Responsibility" (Declaración Responsable) allows renovations on urban land in legal buildings to begin immediately, provided an architect certifies the work complies with regulations.
Extra Tip from Robin:
"Ensure that both your architect and contractors have appropriate insurance coverage before starting the project. In Spain, only approved tradespeople can legally carry out construction work, and having the proper insurance in place is essential for your financial and legal protection."
Prestige Highlights: Ibiza Architect’s at Illot Studio
A special thanks to Robin, founder of Illot Studio, for sharing his expertise with us. Born and raised in Ibiza with Franco-Belgian roots, Robin graduated from the Val de Seine School of Architecture in Paris and founded his studio on the island in 2011. Specialising in renovations, new builds, and landscape design, he has worked on numerous successful projects for both local and international clients. The images featured here highlight some of his impressive work.
Are You Looking to Buy and Renovate a Property in Ibiza?
At Prestige Properties Ibiza, our experienced team is here to guide you through every step of the buying and renovation process. Contact us today to discover your dream home on the island – contact us today
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How to find the Best Real Estate Agency in Ibiza 2025
You can expect a great experience when buying or selling a home in Ibiza if you work with a real estate agency that knows and understands the market. A reputable and experienced agency is more likely to sell or find your property quickly and efficiently, at the best possible price. However, with the growing number of real estate agents on the island, finding the perfect match can be more challenging than expected.
Choosing the Right Real Estate Agency in Ibiza
Begin by asking for recommendations from people who have recently worked with Ibiza real estate agencies. Referrals are still valuable, but in 2025, you should also research online reviews on platforms like Google, Trustpilot, and specialised real estate forums. Personal referrals are still one of the best ways to find a trustworthy agent, but combining them with online research will give you a more comprehensive view of an agency’s reputation and customer satisfaction. Whether or not you have recommendations, follow the advice below to ensure you work with a trusted realtor.
Find a Reliable and Professional Real Estate Agent in Ibiza
Select an agent with a strong local presence. In 2025, many agents may operate online, but the best still have physical offices where you can meet in person. Ensure they are certified by official bodies like COAPI Baleares, which handles certifications, and are members of local professional associations such as PIMEEF or the APIBIZA (which we co-founded).
It’s crucial to work with agents who have a proven track record of successful transactions. Technologies like virtual tours and AI-driven property searches are valuable, since they focus on enhancing the search experience.
Well-Connected Real Estate Agents in Ibiza
The importance of an agent’s network has grown. Top agents in 2025 will not only have a wide portfolio but will also offer a full range of services through partnerships with other professionals like lawyers, architects, and notaries. A well-connected agent ensures that every part of your transaction, from legal matters to architectural assessments, is handled smoothly and efficiently.
Additionally, having a strong local network allows agents to stay informed about new properties, market trends, and opportunities that may not yet be publicly listed, increasing your chances of finding the ideal property or buyer. For more details, read our article on Why sign an exclusive mandate with Prestige.
Ibiza Property Agents with the Best Marketing Efficiency and Online Presence
Check the online visibility of the agency. In 2025 a strong online presence is essential. The best agencies will appear at the top of search results, have a well-designed, user-friendly website, and use professional photography and 3D virtual tours. To ensure your property reaches the widest audience, including international buyers, an agency’s online presence is critical. A well-functioning website, high-quality images, and virtual tours allow potential buyers from anywhere to explore your property, maximising exposure and increasing the chances of attracting serious, high-quality buyers.
In addition to a website, the use of social media and online advertising is vital. Platforms like Instagram, Facebook, and targeted online ads allow agents to reach a broader audience and engage directly with potential buyers. The right online advertising strategy ensures your property is seen by the right people, further increasing the chances of a quick and successful sale. Their offline presence through billboards, magazines, and PR also reflects their market strength. Client testimonials on social media and review platforms are crucial in assessing their reliability.
Transparency in the Ibiza Property Market
Transparency remains key. Ensure all fees, costs, and agreements are clearly stated and acceptable to you. In 2025, with more sophisticated scams and complexities in the market, it’s crucial to work with an agent who is fully transparent and keeps you informed at every step. Working with an honest and transparent agent helps avoid hidden costs and surprises, ensuring you’re fully informed throughout the process. This transparency builds trust and reduces the stress that often accompanies property transactions. Avoid agents who pressure you into decisions or withhold information.
Choose an Ibiza Agent who is Right for You Personally
Buying or selling a home in 2025 can be stressful, but a skilled agent will make the process smoother. After narrowing down your options, visit their offices to gauge their professionalism and see if their values align with yours. An agent who understands your personal needs will ensure a more comfortable experience. Building a strong personal connection helps establish trust, ensuring the agent represents your best interests. This relationship is as important as ever.
Sustainability Considerations
As sustainability becomes increasingly significant, consider agencies that advocate for green practices. Leading agencies not only promote eco-friendly properties but also engage in corporate social responsibility initiatives. If sustainability is important to you, ensure the agency shares your values by promoting energy-efficient homes, eco-friendly renovations, or community-based environmental efforts. Check out our Corporate Social Responsibility initiatives for more information.
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Our Comprehensive Guide to Legalising Rustic Land Constructions in Ibiza: Understanding Decree-Law 3/2024
Investing in real estate in Ibiza, particularly on rustic land, offers a unique opportunity to own a piece of this stunning Mediterranean paradise. However, if you’re considering such an investment, understanding the legal framework surrounding rustic land constructions is crucial. Recent developments, particularly the enactment of Decree-Law 3/2024, have introduced significant changes that could affect your property. This law offers a pathway to legalise buildings and installations constructed on rustic land under certain conditions.
Our guide will walk you through the key aspects of the law, providing a clear understanding of what can and cannot be legalised, the steps required to legalise a property, and the legal nuances you need to be aware of.
An Overview of Decree-Law 3/2024
Decree-Law 3/2024, formally titled the "Law on Urgent Measures for Administrative Simplification and Rationalisation in the Public Administrations of the Balearic Islands," was introduced to address the complexities of legalising certain constructions on rustic land. This decree specifically targets buildings, structures, and installations that predate certain critical years or whose urban infractions have since expired.
The law represents a significant shift in the legal landscape, as it simplifies the administrative procedures needed to bring older or non-compliant properties into legal compliance. For property owners and potential investors, understanding this law is essential to ensuring that their investments are protected and legally sound.
What Cannot Be Legalised?
While Decree-Law 3/2024 provides an avenue for legalising many constructions, it is important to recognise that there are clear limitations and exclusions. The law aims to maintain the integrity of protected areas and public domains, thus excluding certain properties and situations from legalisation.
Expropriation, Cession, or Demolition Zones:
Properties that are located in areas designated for expropriation, cession, or those scheduled for demolition are excluded from legalisation under this law. These areas are often earmarked for public projects or redevelopment and thus are protected from private legal claims.
Public Domain Properties:
Constructions that are situated on public land, which is land owned by the state or local government for public use, cannot be legalised. This includes properties on land designated for parks, public buildings, or other community uses.
Road Protection Zones:
Another critical exclusion involves properties located within road protection zones. These zones are established to maintain safe distances from public roads and highways, and the law excludes strips of 8m, 18m, or 25m, depending on the type of adjacent road, from being legalised. This is in line with the safety and environmental regulations stipulated in Law 5/1990.
Coastal Servitude Zones:
The Balearic Islands, including Ibiza, have stringent coastal area regulations to preserve the coastline’s natural beauty and environmental integrity. Properties located within 100 metres of the inner limit of the coastal riverbank, as defined by Law 22/1988, fall under the coastal servitude zones and are not eligible for legalisation.
Tourism-Related Properties:
If your property is used for tourism-related activities and requires a tourism exploitation licence, it cannot be legalised under this decree while retaining the ability to continue such activities. Legalisation is possible, but it comes with the condition that the property can no longer be used for tourism purposes. This restriction must be formally registered in the Property Registry within three months of legalisation.
Properties Requiring General Interest Declarations:
Certain properties or installations that are used for activities requiring a prior declaration of general interest, as per Law 6/1997, are generally not eligible for legalisation unless they are specifically declared of general interest under special provisions of the law.
What Can Be Legalised
Despite the exclusions, Decree-Law 3/2024 provides a broad scope for legalising many constructions on rustic land, particularly those where urban infractions have expired by a specific date. Understanding what can be legalised under this law is crucial for property owners and potential investors.
Infractions used to become prescribed (i.e., they expired) eight years after it can be definitively proven that the construction was completed. However, since 2018 infractions in rustic land are no longer prescribed. Also, the mere passage of eight years does not always mean that the infraction has been prescribed, as per the following sections.
The decree allows for the legalisation of buildings, constructions, and installations on rustic land, provided their urban infractions have expired by May 29, 2024. The eligibility for legalisation largely depends on the type of land and the date when the infraction occurred.
Natural Spaces Law (LEN) Zones:
For properties located in LEN zones (Natural Spaces Law 1991), the key date is March 10, 1991. If the infraction occurred before this date, the property may be eligible for legalisation. LEN zones are areas of significant environmental importance, and the law carefully controls development in these areas.
Protected Rustic Land:
For properties on protected rustic land, the infraction must have occurred before May 25, 2014, for the property to be eligible for legalisation. Protected rustic land is typically subject to stricter regulations to preserve its environmental and cultural value.
Common Rustic Land:
Properties on common rustic land may be legalised if the infraction occurred before June 28, 2016. Common rustic land is generally used for agricultural purposes, and the regulations here are slightly less stringent compared to protected rustic land.
Cultural Heritage Sites:
For properties classified as Cultural Interest or Cultural Heritage, the infraction must have occurred before November 18, 1990, to be considered for legalisation. These properties are of significant historical or cultural value, and any legalisation process will need to ensure that their character and integrity are preserved.
The Process of Legalising Your Property
If your property qualifies for legalisation under Decree-Law 3/2024, there is a clear process you must follow to achieve legal status. This process involves a series of steps designed to ensure that the property meets all legal and environmental requirements.
Request an Extraordinary Legalisation Licence:
The first step in the legalisation process is to apply for an extraordinary legalisation licence to the relevant town hall. This application formally initiates the legalisation process.
Submit a Technical Legalisation Project:
Along with your application, you will need to submit a detailed technical project that outlines the measures you will take to comply with environmental regulations. This includes plans to reduce light pollution, which is particularly important in rural and rustic areas, and to improve energy or water efficiency. These environmental measures are a key component of the legalisation process and reflect the broader goals of the Balearic Islands to promote sustainable development.
Adhere to Legislation Deadlines:
Time is of the essence in the legalisation process. Decree-Law 3/2024 provides a three-year window from the publication of the decree in the Balearic Official Gazette (BOIB) for property owners to apply for legalisation. It’s important to note that the cost of the application increases each year, so acting promptly can save you money.
Tax Reductions and Financial Considerations:
In addition to the regular licensing and ICIO fees, the process also involves an "economic contribution" equivalent to 10%, 12.5%, or 15% of the material execution cost (calculated at the date of application submission), depending on whether the application is registered during the first, second, or third year of the term, respectively.
The law also provides for tax reductions based on the average taxable income of the property owner over the last four fiscal years. Specifically:
A 50% reduction in legalisation costs is available if the individual’s income is below €33,000 or if joint income is below €52,800.
A 25% reduction is available if the individual’s income is below €52,800 or if joint income is below €84,480.
These financial incentives are designed to make the legalisation process more accessible to a wider range of property owners.
Navigating the Legalisation Process
Investing in rustic land in Ibiza offers a unique opportunity, but it comes with the responsibility of ensuring that any existing structures are legal and compliant with local regulations. Decree-Law 3/2024 provides a valuable framework for property owners to regularise their holdings, but it requires a thorough understanding of the law, adherence to strict deadlines, and a commitment to meeting environmental standards.
By following the steps outlined in this guide, you can navigate the legalisation process with confidence. Whether you’re looking to preserve a piece of Ibiza’s rustic charm or to develop your property further, ensuring legal compliance will protect your investment and contribute to the sustainable development of this beautiful island.
We would like to extend our thanks to Illot Studio for their expertise in breaking down the complexities of Decree-Law 3/2024 and assisting us in creating this comprehensive guide. If you need assistance in legalising any parts of your property, you can contact Illot Studio for professional advice and services.
Do you have any questions or need more info? Send us a message and we will get back as quickly as possible!
The Future of Real Estate in Ibiza: Key Trends and Insights
Ibiza, famed for its stunning landscapes, vibrant nightlife, and idyllic beaches, has long been a coveted destination for luxury real estate. Its market has consistently demonstrated resilience and appeal, attracting investors and homeowners from around the globe. As global trends continue to evolve, Ibiza is not only keeping pace but also leading the way in several innovative aspects of real estate. Here’s a comprehensive look at the key trends and insights shaping the future of Ibiza’s real estate market.
Technological Advancements: Revolutionising the Buying and Selling Experience
The integration of technology in Ibiza’s real estate sector is transforming how properties are bought and sold. Tech innovations, such as virtual tours, 3D property scans, and augmented reality, are making property exploration more immersive and convenient. These technologies allow potential buyers to take virtual tours of homes from the comfort of their living rooms, significantly broadening the market to international buyers who may not be able to visit in person.
Online platforms are streamlining the buying process, offering detailed property information, virtual staging, and direct communication with agents. This digital transformation enhances transparency, reduces the time spent on transactions, and simplifies the entire process, making it more accessible and efficient for both buyers and sellers.
Sustainability and Eco-Friendly Developments: Responding to Global Environmental Concerns
Sustainability has become a cornerstone of modern real estate, and Ibiza is no exception. There is a growing demand for properties that incorporate green technologies and sustainable practices. Buyers are increasingly seeking homes with energy-efficient features such as solar panels, high-performance insulation, rainwater harvesting systems, and sustainable building materials. This shift is driven by a broader global trend towards environmental responsibility, with many buyers prioritising properties that reduce their carbon footprint and promote energy conservation.
Developers in Ibiza are responding by designing homes that not only meet but exceed sustainability standards, integrating renewable energy solutions and green technologies to create environmentally friendly living spaces that are both luxurious and eco-conscious.
Explore more on Sustainability in Real Estate with
Impact of Tourism and Remote Work: Embracing New Lifestyles
Ibiza’s economy has long been bolstered by tourism and its appeal as a vacation destination remains strong, with visitors drawn to its beaches, nightlife, and cultural attractions. However, more recently, the rise of remote work has created a new demand for long-term residential properties that cater to digital nomads and professionals.
Many are now seeking homes that offer a blend of work and leisure, with dedicated office spaces, high-speed internet, and tranquil settings conducive to productivity. This trend is transforming Ibiza from a seasonal hotspot to a year-round destination, attracting a diverse range of residents who value its lifestyle and climate. Developers and real estate agents are increasingly focusing on creating properties that cater to this demographic, offering amenities that support both work and leisure, enhancing the island’s appeal as a year-round destination.
International Investment: Sustaining Market Growth
Ibiza continues to attract significant international investment, particularly from high-net-worth individuals seeking luxury vacation homes or investment properties. This international interest is a crucial factor in maintaining property values and driving market growth. Investors are drawn to Ibiza’s unique blend of natural beauty, cultural richness, and exclusivity.
The island’s real estate market benefits from a steady influx of capital, supporting demand for prime properties and ensuring that the market remains vibrant and resilient. This international investment not only boosts the local economy but also enhances the island’s reputation as a premier destination for luxury real estate.
Navigate Ibiza’s Dynamic Real Estate Landscape With Us
The future of real estate in Ibiza is being shaped by a confluence of technological advancements, sustainability trends, shifting market dynamics, and evolving demographics. As the island continues to attract international investors and adapt to new economic and cultural trends, it remains a prime destination for those looking to invest in luxury real estate.
Whether you are a prospective buyer, an investor, or simply an admirer of Ibiza’s timeless charm, understanding these trends is essential for navigating and capitalising on the opportunities in this vibrant market.
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Ibiza & Balearic Island Real Estate Market Report 2023 & Forecast 2024
As anticipated in our 2022 Market Report and forecast for 2023, the Ibiza real estate market experienced a modest decline in sales over the past year. This decrease can be attributed to various factors, including the global economic slowdown, geopolitical tensions such as the conflicts in Ukraine and the Middle East, and financial uncertainties stemming from inflation and rising interest rates. Despite these challenges, it’s important to note that the market has demonstrated resilience and stability.
Even with a slight dip in demand, the market has maintained a balanced outlook. While asking prices have shown an increase across the Balearics (according to data provided by Idealista), actual sales prices here at Prestige Properties Ibiza have demonstrated a decrease compared to the previous year, as evidenced by municipality prices per square metre where 4 out of 5 municipalities have experienced a decline. This suggests a potential adjustment in asking prices in the upcoming year to align with market trends observed in 2023. However, overall the Ibiza real estate sector remains robust and adaptable. Looking ahead, let’s take a closer look at our 2023 Ibiza real estate market report and predictions for 2024. Please note that this report uses internal and external data to present information on the property market in Ibiza and the Balearic Islands for 2023, along with its projected forecast for 2024.
The analysis covers the following three topics of discussion:
The Balearic Islands’ Housing Market Report for 2023
The Ibiza Luxury Housing Market Report 2023 by Prestige Properties
Predicted Forecast for 2024 by Prestige Properties Ibiza
1) The General Balearic Islands’ Housing Market Summary of 2023
The Balearic Islands have shown impressive resilience over time, as depicted in the graph below. Despite experiencing slight declines in buying / selling and property prices in 2023, the consistent pattern of rebounding after each crisis offers reassurance for long-term investors. This trend underscores the Balearics’ reputation as a secure and enduring investment destination, with the market consistently surpassing pre-crisis levels over the past decade.
2) The Ibiza Luxury Housing Market Report 2023 by Prestige Properties
As anticipated towards the end of 2022, the beginning of 2023 saw a decrease in sales, primarily due to the prevailing global economic sentiment of stagnation and a limited availability of sellers in the market.
As we can see from the graph above, the sales volumes over the past five years seem to mirror broader global economic trends: a decline in the pre-COVID years, followed by a significant surge in the post-COVID years of 2021 and 2022, and now a slight downturn. It remains to be seen whether the 2023 downturn will stabilise or if it will lead to a prolonged downward trend, or whether it is just a short-lived dip. Monitoring the market closely will provide clarity on its trajectory moving forward, but nevertheless, in comparison to 2018, the past year still has a 36% increase in sales volume. Even with a dip in sales volume over 2023, the average asking price per m2 across the whole of Spain, the Balearic Islands and Ibiza has demonstrated a steady increase.
The graph above illustrates an overall significant price increase in Spain, the Balearic Islands, and Ibiza from 2022 to 2023. However, it’s essential to clarify that these prices are based solely on advertised asking prices from the national Idealista property platform, not actual sales prices. For real sales price development in Ibiza, please refer to the graph further down in the report.
The two graphs above illustrate a slight decrease in sales inquiries (demand) alongside a significant increase in the number of properties listed for sale (supply). This indicates a gradual transition from a low supply/high demand market in 2022 to a higher supply/lower demand scenario. Despite this shift, we are still currently in a sellers’ market. The developments in the coming year will determine whether a shift towards a buyers’ market is occurring, if this trend will stabilise, or if it is merely a temporary dip. Although the 2023 data suggests the beginning of a new trend, the next two years will be pivotal in providing more insight and certainty. Monitoring and understanding the market during this period will be crucial in determining whether this shift is permanent or temporary.
Average Price per Square Metre per Municipality in Ibiza in 2023
As mentioned earlier, the change in the balance between supply and demand signals a shift in the market. Furthermore, there has been a decrease in the average price per square metre on the island, indicating a move away from a seller’s market. These figures differ from those presented by Idealista, which primarily focused on asking prices. In essence, property owners may need to reconsider their price expectations. However, this could also present an opportune moment for them to sell their property and capitalise on the evolving market conditions, potentially transitioning towards a buyer’s market.
In general, even with a decrease year-on-year we still can see an overall increase of 17% within a 5 year period (2018-2023). We have noticed a dramatic increase in demand for the municipality of San Antonio, where the average price per square metre has increased over the last few years, although it remains the most affordable municipality on the island, with many rewarding opportunities for buyers.
Eivissa (Ibiza Town) – Average Price & Price per m2 in 2023
Ibiza Town accounted for around 13.4% of our sales volume in 2023. Although the capital’s average price per square metre of 6.268,97 € was slightly lower than in 2021 and 2022, it was still significantly higher than five years ago (20% higher). The most important type of property in the capital was the apartment. In 2023, the average size of an apartment was 73 m2. The houses sold by Prestige Properties in Eivissa in 2023 had an average size of 456 m2 and an average price per m2 of 5,498€.
Sales Volume: 13,41 %
Average Price: 919.700,00 €
Average Price/m2: 6.268,97 €
Average Property Size: 149,75 m2
Typical Property Types: Apartment and House
Municipality
Avg. Sales Price
Avg. PRICE X M2
Eivissa
919.700,00 €
6.268,97 €
Apartment
532.100,00 €
6.526,10 €
House
2.082.500,00 €
5.497,59 €
San José – Average Price & Price per m2 in 2023
As in previous years, San José is the municipality with the greatest interest and volume of sales, high in demand among affluent luxury second-home buyers. It is one of the few municipalities where the average price per square metre is still increasing, even slightly higher than in 2022, with an average of 8023.74 € per square metre. This area accounts for 41.62% of the Prestige Properties’ sales volume in 2023. In addition, it has the greatest mix of properties sold on the island. With apartments, houses and modern villas being the most prominent.
Sales Volume: 41,62%
Average Price: 1.869.230,77 €
Average Price/m2: 8.023,74 €
Average Property Size: 246,62 m2
Typical Property Types: Apartment, Finca, House, Modern Villa, Plot with licence
Municipality
Avg. Sales Price
Avg. PRICE X M2
San Jose
1.869.230,77 €
8.023,74 €
Apartment
466.250,00 €
5.394,53 €
Finca
2.750.000,00 €
13.033,18 €
House
2.227.500,00 €
11.275,61 €
Modern Villa
3.058.333,33 €
6.913,14 €
Plot with licence
1.600.000,00 €
3.855,42 €
Santa Eulalia – Average Price & Price per m2 in 2023
In 2023, the average price per square metre in Santa Eulalia was €6,293 . This price is 23% lower than last year (2022: 8.185 €). However, even with this drop, Santa Eulalia has seen an average of 1.7% increase in its price per square metre since 2018, returning to stable pre-covid and pre-boom levels. Santa Eulalia accounted for almost 30% of our total sales volume in 2023, placing it at second place after San José.
Sales Volume: 29,78%
Average Price: 2.173.350,00 €
Average Price/m2: 6.293, 28 €
Average Property Size: 297,63 m2
Typical Property Types: Apartment, House, Modern Villa
Municipality
Avg. Sales Price
Avg. PRICE X M2
Santa Eulalia
2.173.350,00 €
6.293,28 €
Apartment
824.200,00 €
4.562,94 €
House
995.000,00 €
3.934,89 €
Modern Villa
6.000.000,00 €
9.803,92 €
San Antonio – Average Price & Price per m2 in 2023
At Prestige Properties we have seen the interest in the municipality of San Antonio grow over the years. It is still the most affordable municipality in Ibiza, with many rewarding buyer opportunities. While in 2018, Prestige Properties sold no properties here, in 2023 it represented 9.21% of our sales volume. The average price per square metre is €5,202 which represents a 20% increase from 2019 figures.
Sales Volume: 9,21%
Average Price: 767.928 €
Average Price/m2: 5.202 €
Average Property Size: 137,57 m2
Typical Property Types: Apartment, House
Municipality
Avg. Sales Price
Avg. PRICE X M2
San Antonio
767.928,57 €
5.202,92 €
Apartment
455.100,00 €
4.207,89 €
House
1.550.000,00 €
7.690,48 €
San Juan – Average Price & Price per m2 in 2023
In the municipality of San Juan, the average price per square metre is €10,472, the highest on the island and one of the few municipalities where the price per square metre has been rising steadily over the years. The average price/m2 in San Juan has seen a staggering 42% increase since 2018. It should be noted that properties in the north are scarce. Typical properties in the north are houses with large plots and protected land, with few neighbours, which is one of the reasons for the high prices. The municipality of San Juan accounted for around 6% of our total sales volume in 2023.
Sales Volume: 6%
Average Price: 1.625.000,00 €
Average Price/m2: 10.472 €
Average Property Size: 137,57m2
Typical Property Types: House, Finca
Average Sales Price of each Property Type in Ibiza
Avg. Price
Property Type
2018
2019
2020
2021
2022
2023
Apartment
344.250 €
608.333 €
427.500 €
628.755 €
589.778 €
559.468 €
Finca
1.500.000 €
2.950.000 €
ND
3.153.000 €
2.915.714 €
2.750.000 €
House
1.558.809 €
1.712.647 €
1.650.596 €
2.323.569 €
1.555.384 €
1.784.583 €
Modern Villa
5.400.000 €
2.200.000 €
3.841.666 €
2.970.000 €
4.683.750 €
3.793.750 €
Plot with licence
ND
ND
800.000 €
445.000 €
1.425.000 €
3.850.000 €
Plot without licence
570.000 €
1.100.000 €
ND
871.666 €
ND
ND
Avg. Price
1.342.468€
1.616.956 €
1.793.291 €
1.979.464€
1.474.321 €
1.517.628 €
Deep Dive: Average Sales Prices of Properties that are "as new" vs "to renovate"
In 2023, Prestige Properties sold more new properties than those slated for renovation. Naturally, renovated properties typically command lower average selling prices; however, the difference per square metre between new and renovated properties is modest.
New properties are scarce in Ibiza due to limited space, stringent building regulations, and laws limiting new construction on the island. Consequently, Ibiza is appealing to buyers and investors seeking properties to renovate and resell.
Deep Dive: Reasons for Buying a Property in Ibiza
Ibiza has consistently proven itself as an exceptional investment destination, drawing interest from numerous international investors in recent years. The predominant choice among these investors has been acquiring second homes, either for leisurely holidays or as a respite from the chilly northern winters. In the year of 2023, this trend persisted, with an overwhelming majority—nearly 75%—of our clients opting for properties earmarked as their secondary (holiday) residences.
A noteworthy 14.7% of investors have strategically chosen properties for pure investment purposes, underlining the island’s allure for those seeking financial returns. Equally compelling is the fact that approximately 12% of Prestige’s clientele has chosen to invest in their primary homes, reflecting a genuine commitment to relocating, residing, and engaging in year-round endeavours within the vibrant and captivating landscape of Ibiza. The diverse preferences of our clients continue to underscore the island’s multifaceted appeal and enduring investment potential.
Deep Dive: International Interest and Percentage of Nationalities Buying in Ibiza
Ibiza attracts a diverse mix of cultures, with a significant portion of buyers hailing from European backgrounds. While the United Kingdom has traditionally been a major source, the event of Brexit saw a sharp decline in UK buyers during a period of time, however, in 2023 we see the UK buyers reclaiming their traditionally strong market share in Ibiza’s international clientele, comprising 24.4% of our buyers. However, we have also seen a shift in spending amongst UK buyers, with an increased preference for apartments as opposed to larger properties. This is reflected in the fact that UK buyers represented only 15.05% of our total sales volume.
There has been a notable increase in Spanish and Italian buyers in recent years, signalling a changing dynamic. Spanish nationals emerged as the second-largest group of buyers in 2023, accounting for 19.03% of the annual sales volume across houses, apartments, and plots with licences.
Belgian buyers, constituting 9.8% of our clientele, demonstrated the highest average spending in 2023. This discerning group contributed 18.65% of the total sales volume, showing a preference for larger properties intended as second homes. The evolving demographics of our buyers underscore the broad appeal of Ibiza and the diverse preferences shaping their investment decisions.
Deep Dive: Popular Ibiza Municipalities by Buyer’s Nationalities
In 2023, San José emerged as the top performer in terms of sales volume, accounting for 41.62% of total sales. This area has become a magnet for people of various nationalities. At Prestige, we’ve observed that it’s the most sought-after location on the island, particularly drawing the interest of investors. Meanwhile, San Antonio’s popularity has been steadily increasing over the years. Similar to 2022, in 2023, the majority of buyers were from the UK. San Antonio has become a favoured destination for UK nationals, particularly those who enjoy spending their summer vacations in Ibiza.
Deep Dive: Prestige’s Top-Selling Locations of the Year 2023
Based on the Sales Transaction Volume, the top-selling municipality in 2023 was San José, followed by Santa Eulalia and Eivissa (Ibiza Town). Considering the actual number of properties sold in each municipality, the order changes to San José (31%), Ibiza Town (24%), Santa Eulalia (19%), San Antonio (17%) and San Juan (8%).
Long-Term Rental Interest: an indicator for potential buyers
Amidst limited availability and heightened demand for long-term rental properties, Ibiza persists as a lucrative investment destination for clients pursuing buy-to-let opportunities. Furthermore, for people interested in living here all year round or relocating to Ibiza, buying a property will be more attractive and, with the right budget, easier to find than a suitable long-term rental property.
High Demand vs. increasing supply – is the market changing?
In contrast to previous years, where there was a decline in property supply, Prestige Properties has seen a significant shift in supply dynamics in 2023. The number of new properties listed with Prestige Properties increased notably by 38% compared to 2022. This trend is expected to continue into 2024, indicating a growing trend among sellers to take advantage of favourable market conditions. Amid increasing financial uncertainty and a slight decrease in sales prices, sellers are encouraged to consider selling their property now to capitalise on the current high price levels. At the same time, for prospective buyers, the expanding supply of properties offers a wider range of options to choose from, making the Ibiza real estate market more attractive.
Conclusion: The Luxury Real Estate Market Ibiza 2023
Amidst global challenges, geo-political developments and financial uncertainty, the Ibiza luxury housing market is still flourishing. As one of Europe’s most popular holiday destinations, there is a high level of interest in investing in a property here. It is well known that the Balearic Islands have a very stable real estate market with the tendency to increase prices and rebound even stronger after a global economic crisis.
We can also see that the trend continues, and Ibiza’s average price per square metre is still higher than the overall price per square metre of the Balearic Islands or the Spanish mainland.. Furthermore, the property supply is gradually increasing again, leaving the impression that the market might shift from a buyer’s to a seller’s market in the future.
3) Prestige Properties 2024 Predicted Forecast
As we cast our gaze toward 2024, the landscape of Ibiza’s real estate market points towards a potential shift to a buyer’s market, but a confirmation remains elusive due to incomplete data. The uncertainty is further fueled by geopolitical circumstances and financial insecurities, which may influence property purchases in the coming year.
Sales in the Ibiza real estate market for the year 2024 are anticipated to stabilise, with an observable increase in the number of properties available on the market. This trend may persist, leading to a greater inventory of properties in the following year. Despite this, the current market conditions suggest that it remains a favourable time to sell properties in Ibiza, as prices are currently high. However, the trajectory of future prices is still uncertain, and whether they will stabilise or experience a decline cannot be confirmed yet.
Historically, Ibiza’s real estate market has exhibited resilience, with prices recovering and often surpassing previous levels after experiencing a drop. This characteristic makes the market in Ibiza intriguing for long-term investors who may view potential downturns as opportunities for future gains.
For those considering buying property in Ibiza, the island’s real estate market has demonstrated its ability to bounce back after crises, distinguishing itself from mainland Spain and other real estate markets. Ibiza’s multicultural environment, coupled with a high demand for luxury properties and holiday homes, further enhances its attractiveness for both sellers and buyers.
It is currently a favourable time to sell due to high prices, and potential buyers may find opportunities, given the increase in available property, the historical resilience of the market and the island’s unique appeal.
To navigate this dynamic market successfully, staying informed with real-time updates, seeking guidance from local experts, and considering global economic conditions are essential practices. As the journey into 2024 unfolds, the Ibiza real estate market beckons with both challenges and prospects for those ready to explore its intricacies.
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