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.
If you’re interested in viewing our Ibiza & Balearic Island Real Estate Market Report 2024 & Forecast 2025 or would like to speak with an agent about the current market and investment opportunities, contact us today!
We would be more than happy to talk you through Ibiza’s Real Estate potential.
