2021 Annual Ibiza Property Market Report and 2022 Forecast

Based on both internal and external sources, this report presents information on the property market in Ibiza and the Balearic Islands for the year 2021, as well as its projected forecast for 2022. Based on data and figures received in 2020 and 2021, the analysis covers four main topics of discussion:

  1. The General Balearic Property Price Curve & Sales 
  2. The Ibiza Property Price Curve 2021 Summary
  3. The Ibiza Luxury Housing Market Report 2021 with Prestige Properties
  4. The Forecast for 2022 


1. The General Balearic Property Price Curve and Sales

Over the past decade, as discussed in our year-end property market review for 2020, both sales and house prices have shown continual and stable growth across the Balearic Islands. Here we can see, although the real estate market took an abrupt decline following the Spanish financial Crisis in 2007, the market has since stabilized and experienced a steady recovery, reaching a peak increase for both sales and price by 2017.  


The first marked fall in prices and sales only occurred in late 2019 through until 2020, suggesting that the market as a whole was experiencing minor stagnation.  This minor stagnation was only exacerbated by the fact that the property market industry, like many other sectors, started to experience less movement due to the uncertain status of COVID-19 as well as three months of physical inactivity due to complete closure. 

However, as early as the summer of 2020 and moving through until the end of 2021 we have been very pleased to see buyers’ activity quickly restart, and thriving again with property sales continuing to rise in all sectors of real estate across the Baleares. 


There should be no doubt, however, that this growth has been influenced not just by the characteristics of the local market, but also by global interest in real estate as a whole.  

According to Forbes, 2021, "In the wake of the lockdowns in March, Americans discovered that existing homes were not adequate for the new work, teach, exercise, cook and live at home reality. Based on realtor.com surveys of consumers, we learned that home shoppers are looking for more space, quieter neighborhoods, home offices, newer kitchens, and access to the outdoors, traits which have revived a strong interest in the suburbs and smaller metro areas." 

This is further supported by Savills Global Real Estate Service who claim our changing priorities since Covid-19 are shifting global residential real estate. Here the international agents describe, "tastes shifted during the pandemic as home became the centre of the universe… We have (also) seen a step-change in second home ownership too. In Dubai, 2021 has seen an ‘unprecedented influx’ of international high net worth buyers looking for a second home and as Hugo Thistlethwayte, Head of Global Residential Operations, notes: ‘There has been a realisation that a second home doesn’t need to be an hour from the main city residence, but could be in Aspen, Jackson Hole or Switzerland. This trend could make places like the Algarve, Mallorca and the south of France 52-weeks-a-year locations." (2021)

As we can see from the Balearic year-on-year variation in house prices (below), despite a temporary pause in buying activity, the interest in moving location, and seeking a new property has not only since recovered, but has quickly regained the highest pricing since 2007, supporting the argument that living priorities and significant interest in real estate have increased as a result of the pandemic.


2. The Ibiza Property Price Curve 2021

There is no doubt that the pandemic has altered our notion of home, finally allowing us to dare to create our dream life, working a city position amid a coastal or countryside second-home alternative, and, of course, complemented by the chance to also secure a strong investment.

Here in Ibiza, it is evident that we are experiencing similar "unprecedented influxes" and a small boom in the luxury sector of Ibiza’s real estate market for second-home international buyers, brought on by Covid-19. The pandemic has motivated buyers with means to invest in properties located in safe and more natural surroundings, away from overcrowded so-called ‘hotspots". Ibiza’s high-end and upscale property market, therefore, continues to be a desirable location for second-home buyers particularly from Europe, and naturally, we continue to experience a situation of low supply versus high demand, which means that many villas and properties are seen as rare products, driving price booms, resulting in a strong and an unwavering price curve right here in Ibiza (see section ii price per square metre comparison below). 

While prices and sales lowered during autumn 2019 and early 2020 in the Baleares as a whole (as seen from the graph above), it must be noted that Ibiza’s luxury real estate market has often shown to be more resilient than its neighbouring islands, and set-backs or downturns in the market and price curves never hit quite as strongly.


3. The Ibiza Luxury Housing Market Report 2021 with Prestige Properties

All data discussed below is a representation of our internal data related to the Luxury Housing Market in Ibiza and is solely taken from our internal database.


i) Average Price per Square Meter

Our internal statistics from our sales database with Prestige Properties Ibiza calculated an average increase in price per square metre, from 6.569 to 7.927€, approximately a 21% increase between 2019 and 2021.


ii) Average Price & Price per m2 by Municipality

On the whole, all areas on the island have experienced price-per-square-metre increases between 2019 and 2021.  

N.B The price per square meter, per municipality, may need to be flexible as the figures depend solely on our internal sales, and weighty factors may apply, as noted in our analysis hereafter.

201920202021
Eivissa€6.437€6.076€7.418
Sant Josep€6.755€7.931€7.998
Santa Eularia€6.471€6.715€9.553
Sant Antoni€4.876€5.273€5.442
Sant Joan€9.048€8.644€9.604

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Eivissa – Average Price & Price per m2 by %

The entire city is in high demand and continues to demonstrate a strong market presence. Overall, Eivissa has something for everyone, like most cities in Europe, and has increased in popularity in line with the rest of the island. Eivissa has experienced a 15% increase in price per square metre since 2019.

Average Property Size: 168m2 | Average Property Price in Euros: 1.3M 


Sant Josep – Average Price & Price per m2 by %

San José has always been high in demand among affluent luxury second-home buyers.  In 2021, if we segmented San José, areas such as Es Cubells and Ses Salines would still naturally appear at the very top of the island property portfolio, where many other San José developments and properties would now be on par with some of the properties and prices on offer in Santa Eulalia. Sant Josep has experienced an 18% increase in price per square metre since 2019.

Average Property Size: 256m2 | Average Property Price in Euros: 2M


Santa Eulalia – Average Price & Price per m2 by %

In 2021, a particularly large property sale occurred in Santa Eulalia, leading to an unusual rise in the overall average price per square metre and as previously mentioned, some flexibility is required here. However, if we take the current average as gospel, Santa Eulalia would have experienced a 48% increase in price per square metre since 2019. It is clear that Santa Eulalia (despite margin for slight error) is catching up rapidly to the highly sought-after area of San José. 

Average Property Size: 311m2 | Average Property Price in Euros: 3.5M


Sant Antoni – Average Price & Price per m2 by %

The area of San Antonio de Portmany is slowly making progress, becoming more sought-after than clients may first assume. Although the area is often in less demand than other areas, potential home buyers are often encouraged to look at the abundance of opportunities and great investment prospects here.  San Antonio has seen a 12% increase in price per square metre since 2019.

Average Property Size: 299m2 | Average Property Price in Euros: 1.6M


San Juan – Average Price & Price per m2 by %

In the last couple of years, Sant Joan seems to be where the most prestigious and expensive villas are located, with a price tag that has almost doubled on average over the past few years. The new demand for properties in the municipality is a reflection of the property market’s high-end price valuation. San Juan has seen a 6% increase in price per square metre since 2019.

Average Property Size: 344m2 | Average Property Price in Euros: 3.7M

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According to Tinsa (2021) Living on the Coast Report, the market in Ibiza has exhibited different behavior depending on the segment. However, as per our internal analysis, the demand for detached homes for sale or long-term rental has increased. There have also been price increases, more notable in detached homes than in new developments.  They summarised:  

Standard multi-family homes sit between 3,000 and 4,000 €/m2, with a surface area from 50 m2 to 140 m2, with one to three bedrooms. Single-family homes typically register between 6,000 and 7,000 €/m2 and those larger family homes value between €10,000 and €20,000/m2. These properties were mostly located on the seafront promenade of Ibiza or on the front line of a marina. The most expensive single-family home registered between 12,000 and 15,000 €/m2 for a detached house. This product was mostly located on the west coast of the island of Ibiza in the municipality of Sant Josep and around Ibiza in the neighbouring municipality of Santa Eulalia. 

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iii) Sales per Year

Our internal statistics from our sales database with Prestige Properties Ibiza between 2019 and 2021 calculated a very minor decrease of 4% in sales and only 3.5% in volume, which despite the 3-month closure of offices and ability to partake in property viewings is basically a non-existent comparison.

Properties sold to date in 2021 (up until October 2021) have calculated an increase of 56% more sales than 2019 and a turnover of 95% increase in Euros related to direct sales.

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iv) Enquiries per Year

Even with pandemic news, lockdowns, and restricted movement, we still saw an ongoing and steady flow of users visiting the website and generating inquiries throughout the year 2020. During the year 2021, since restrictions began to ease, an increase of over 36% has been recorded as active inquiries conducted by individuals seeking an Ibiza property whether through sales or rentals.

Conclusion: The Luxury Real Estate Market Ibiza 2021

Even with the pandemic looming during 2020, luxury housing in Ibiza continued to make progress regardless. As we can see from the information and data above, the way we are changing and prioritising our home lifestyle has led to a definite increase in global (and island-wide) interest which has only resulted in a growing buyers market in 2021. As more and more clients seek out their ideal lifestyle in a more relaxed environment, away from the hassles of the big cities, it is evident that international buyers continue to dominate and strengthen the luxury real estate purchasing market.  In fact, "user behavior data shows Ibiza remains the most popular among the three main Balearic islands, achieving 22% more listing views than Mallorca (even though it has half the number of active listings)." – James Edition, October 2021

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4. The Forecast for 2022

It is expected that house prices will continue to rise steadily and consistently in the luxury property market in Ibiza as there are no signs of crisis at present, making for attractive investment opportunities. In general, this speaks of Ibiza’s upscale market, which not only survived but flourished during the pandemic, giving us confidence that the island will continue to be attractive on an international level for the foreseeable future 2022. However, we do not envision a continuation in the number of sales we have witnessed during 2021.  We anticipate the sales boom of 2021 will potentially slow down as the post-pandemic effect fades away, especially as we are increasingly seeing a case of low numbers of sellers in the market as we continue towards the end of 2021.

Long-term rentals for larger properties have become increasingly popular, especially with families. Prestige Properties Ibiza was required to hire more staff by the summer of 2021 in order to deal with the influx of inquiries, especially for long-term rentals. This is also confirmed by Morna International School, which has received a record number of new student applicants, who are also seeking residency (James Edition, 2021), indicating a potential anticipated interest for families in 2022 who may be keen to stay in the rental market until the right property for sale arrives in the future, or on the opposite side of the coin, they may return back to the metropoles once the effects of the pandemic and lockdowns are both a distant memory, (which at the moment, seems like is not likely to happen anytime soon). Either way, it is still undeniably the international buyers and overseas investors who are still the main market for second luxury homes in Ibiza and are expected to be in 2022.

Additionally, the island is exhibiting even greater growth in general, becoming an even more desirable and trendy place to live. Since small, local businesses have struggled to cope with lockdowns and business closures, we have also seen an influx of new, innovative bars and restaurants opening, and signs that continued investment is underway.



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    2020 Annual Ibiza Property Market Report and 2021 Forecast

    This 2020 annual property market report and predicted forecast for 2021 has been provided by Prestige Properties Ibiza, which summarises key trends and patterns in the current Ibiza and Balearic housing market, with statistics and impressions from both internal and external sources as documented.
    The analysis covers four significant points and primarily draws upon data and figures received throughout 2019 and 2020.

    The Ibiza Property Market Report has been broken into four sections as detailed below:

    1. The General Balearic Property Price Curve
    2. The Ibiza Property Price Curve
    3. Prestige Ibiza Luxury Housing Market Report 2020
    4. The Forecast for 2021

    The General Balearic Property Price Curve

    The general real estate market across the Baleares has demonstrated a durable and stable rhythm in both consumers and house prices over the past 10 years. Following the financial crisis in 2007, the real estate market took a steep drop from its peak, which later stabilised and found a steady recovery from 2017 onwards.

    Ibiza Property Market - Evolucion del precio de la vivienda en Islas Baleares

    The year 2020 is the first year to have both a marked price and sales drop since 2017, suggesting the overall market is experiencing slight fatigue.
    According to Tinsa (2021), the average house price throughout the Baleares shows a decline of 1.4% throughout 2020.

    However, given the uncertain circumstances relating to the global economic system, individual employment conditions, lockdown enforcements, and travel restrictions related to COVID-19, these statistics are to be more than expected and are a direct result of less movement within the property market industry over the past year.

    This is data further supported by EpData (2021) who also identify a clear drop in property sales across the Baleares from 2019 to 2020. Published data by the General Notary Council declared the number of sale transactions at a total of 1,124 in January 2020, representing a year-on-year decline of 1.92%. This in turn may also have influenced the beginning of house prices gradually dropping, even before the start of the pandemic, although we cannot be certain.

    The Ibiza Property Price Curve

    However, when discussing the rise in the general property market price curve in the Baleares before 2020, one of the most notable and major contributions to its recovery and growth lies in the luxury real estate market here in Ibiza.

    Here, we find the inflation of luxury housing as a weighty contributor to the upsurge of the overall general property market price curve, and a palpable influence in the continuing momentum from 2017 onwards.

    Ibiza has become, by comparison to anywhere else in Spain, including the leading cities of San Sebastian, Barcelona, and Madrid, an exceptionally valuable island, with average property prices rising above 56% in the past five years with a year on year progress – El Pais, 2019

    These figures over the past five years correlate with the immense interest and pursuit for homes from non-resident and overseas buyers. The demand for luxury properties has gone from strength to strength, and the Ibiza property market has ever since seen a rise in the value of our homes.
    This immense pursuit from international clients has led to the high-end property market in Ibiza finding itself with an occurrence of a low supply versus a high demand, and low supply effectively means that many villas and properties are stamped as a rare product.

    Naturally, where there are demand and rarity, areas become highly sought after, and even those smaller, lower costing properties, terrace housing, and apartments have taken a significant leap in value too, creating an unwavering price curve for the whole of the Baleares.

    The Ibiza 2020 Luxury Property Market Report with Prestige Properties

    The year 2020, although unstable in almost every sense of the word, has surprisingly followed the trend of increase here in Ibiza, with similar patterns starting to emerge in 2021.

    It must be noted this ‘increasing price curve trend’ can only be considered when discussing the luxury housing market, whereby the majority of properties in question are related to international second-home buyers, that are seeking and purchasing housing at the top-end of the Ibiza property market values. Our internal statistics from our sales database with Prestige Properties Ibiza between 2019 and 2020 calculated an average increase in price per square metre, from 6.665 to 7.021€ (approximately 6% increase), with the same number of sales recorded.

    Overall a very minor 1.1% decrease was noted on the total Euro expenditure from purchasing properties over the entire year. Even with global lockdowns, business closure for three months, and multiple travel restrictions, the luxury housing market has remained strong, just like our year-on-year statistics which have remained very firm and very positive.

    Ibiza Property Market - Avg. Price per square meters 2019 2020

    Property investment in Ibiza throughout 2020, specifically in the luxury housing market, has been incredibly safe with values very attractive on a global standard.

    Although the general property market price curve and sales demonstrate a slight dip and fatigue over 2020, the luxury real estate across the island of Ibiza, has demonstrated a noteworthy difference to the overall general statistics, with a continuation of increase that is inevitably supporting the overall market happenings.

    The Luxury Real Estate Market

    Ibiza is clearly distinguished by many exclusive and high-end properties. In each municipality prime housing has always been highly sought after. The luxury second-home real estate sales market has been very active throughout the health crisis and our annual statistics have confirmed our speculation (among our partners and collaborators), the interest in Ibiza has grown during the health crisis, with more and more clients looking to fulfill their dream life, in a more natural environment, away from the inconveniences of the large metropoles.

    From February 2020, just before the first announcement of a global pandemic, we see a consistent and steady flow of users over the year visiting our website with the same usual peak over the summer months where tourism enquiries are more active.

    Ibiza Prestige Properties - 2020 - Monthly Traffic (Num. Users)

    The island of Ibiza is an exceptionally diverse culture attracting many communities predominantly from across Europe with International buyers dominating the luxury real estate purchasing market.

    Our internal data demonstrates the majority of international interest throughout 2020 were the British population (23%), with an almost equal distribution of nationalities from France, Belgium, Germany, the Netherlands, and the United States visiting our website as confirmed users.

    Ibiza Prestige Properties - 2020 - Audience Geography

    Whilst the Spanish and Italian nationals came into second and third place, these statistics are more likely to be reflective of the tourism market rather than the luxury housing market, as these two nationalities are not the most common buyers in Ibiza within the luxury real estate market.
    Undeniably, fewer clients viewed properties due to travel restrictions throughout 2020, but those determined to purchase a home in Ibiza, continued on their buyer’s journey successfully, giving us great confidence to face next year with optimism and positivity.

    Our speculation is strongly supported across the board with reports that "Spain’s luxury real estate market remains patient, contemplative and sound. Almost immune to price indentation in other segments of the sector, luxury housing has been sheltered in a trench of owners who resist lowering their properties, knowing that this market plays in another division." – El Pais Economia, 2020

    Since the beginning of the pandemic, peace, and tranquility, away from risk, quarantined cities and schools, ecological land, fresh air, and less overcrowding are high on the buyer’s agenda.

    Ibiza Property Market Forecast 2021

    House prices in the luxury Ibiza property market are expected to remain stable in 2021 with anticipated growth and continued progress at a steady and stable rate.

    It is still undoubtedly the international buyers and overseas investors who continue to be Ibiza’s leading audience with second luxury homes being the main conclusive factor for this continuation in momentum, setting the scene in the luxury home sector both now and in the future.

    With the consideration that the early months of any new year are relatively quiet for any industry, the current interest in the early part of Q1 2021 has already seen a determined continuation of an increase in both property values and sales. We anticipate a very mature and sustainable market consisting of long-term stability, growth, and strength, which indicates a continuous and positive future market in 2021.

    The anticipated drop of sales and property prices across the Baleares due to the pandemic excludes the luxury housing market here in Ibiza. However, it must be noted there are no signs of crisis in the property economy thus far, and we expect to see a positive continuation of the general Balearic property price curve as we begin to move towards normality in the future.

    Consideration must be given to the potential opportunities available across the general Balearic market. Smaller plots of land and housing investments currently valued at lower rates are likely to have a very short expiry date. Once the pandemic relaxes and we begin to return to normality, these opportunities will likely cease to exist as property prices are likely to get back on the same path of increase as before, especially as the luxury housing market and desirability for Ibiza has not wavered in the slightest over 2020.

    Prestige Properties ‘Fun Facts’ 2020

    With the 2020 Ibiza Property Market Report and 2021 Forecast heading in the right direction for a positive future, we thought it would be fun to add a few additional points to our article. Here are a few of our top viewed properties over the course of the year. We hope you enjoy ‘through the keyhole’ at our most desirable luxe properties below.

    Penthouse Es Pouet – 17,488 views

    Asking Price: 3,295,000 € – Removed from Market for a Long Term Let Agreement

    Penthouse Es Pouet Ibiza
    Penthouse Es Pouet Ibiza
    Penthouse Es Pouet Ibiza

    Villa Calypso Cala Salada – 12,807 views

    Asking Price: 2,350,000 € – SOLD

    Villa Calypso Cala Salada
    Villa Calypso Cala Salada
    Villa Calypso Cala Salada

    Villa Estels San Mateo – 8,532 views

    Asking Price: 5,950,000 € – SOLD

    Villa Estels San Mateo
    Villa Estels San Mateo
    Villa Estels San Mateo

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      Ibiza Property Market Report and Forecast 2020

      This Ibiza Property Market Report has been researched and provided by Prestige Properties Ibiza summarising trends over the past 15 years, utilising statistics and impressions from both external and internal sources.

      The analysis draws upon data and figures of property sales and pricing received between 2004 and 2019, and covers house pricing monitored over the course of 2019.

      Home sales Ibiza and Formentera 2004 - 2019

      Ibiza Property Market Price Curve

      The real estate market in Ibiza has demonstrated a durable and stable rhythm in both consumers and house prices over the past 10 years. Following the 2008 financial crisis, Ibiza by comparison to anywhere else in Spain and much of Europe, has exhibited an impressive recovery and a steady increase of both sales and prices.

      However, over the past two years, Ibiza has observed a slight decline in sales. This decline is reflective of recent developments within the newly established planning permission laws here on the island.

      Regulations are now set to ensure all new properties are built under 320sqm in non-urban areas with new build licenses often proving quite hard to obtain and processes being lengthy. Previously built properties on the market can often present legal issues and similar restrictions. While these developments are very positive for the preservation and beauty of Ibiza, it generally leaves a lack of available products. With the strengthening demand for properties, we inevitably find an occurrence of a low supply versus a high demand.

      Opposed to any real estate crisis emerging, the Ibiza Property Market is seeing the value of existing luxury homes stamped as a rare product and even with a dip in sales, the unwavering price curve continues to rise. Therefore, a more mature and sustainable market with long term stability, growth and strength is notable, which indicates a positive future market to come.

      Sales Average Price M2 Ibiza 2005-2019

      Nationalities in the Ibiza Property Market – 2019

      The island of Ibiza has an exceptionally diverse culture attracting many communities predominantly from across Europe as residents, businesses, tourists and investors. International visitors accounted for almost 80% of the total guests in Ibiza during 2019.

      The continuation of international visitors and buyers is the driving demand in Ibiza real estate, proving to raise property values overtime and inevitably improve the overall infrastructure and stability of the property market both in Ibiza and Spain.

      Although statistics for exact nationalities in the Ibiza Property Market are hard to assess, inevitably the British, French and German are incredibly strong, with a marked increase in Belgium and Dutch nationals investing more in property over the past 10 years.

      Ibiza Nationality of Visitors 2019

      Prestige Properties Market 2019

      Ibiza is distinguished by many exclusive and high-end properties. In 2019 the Ibiza Property Market with Prestige Properties Ibiza calculated an average price per sqm of 6.665€.

      The housing market between each municipality naturally varies depending on the style and size of the property, the facilities, surrounding land, panoramic views and the cultural environment of the area.

      The area of San Jose demonstrates the highest demand with a multitude of modern, contemporary and luxurious villas which fulfils many property requirements from international buyers with an average house price of 2.200.000€.

      Eivissa and San Antonio attracts buyers looking for apartments and terrace style housing which can range between 500.000€ – 1.000.000€, whereas in the north, a largely ecological area with a very specific housing style average a price of 2.900.000€. The family friendly area of Santa Eulalia, would average 1.700.000€ for a 250m2 villa with a pool.

      Ibiza Property Market - Prestige Properties Ibiza - Average price per m2 2019

      Typical Properties Per Municipality

      AreaM2Average PriceType
      San Jose3002.200.000€Villa
      Ibiza Town100500.000€ – 1.000.000€Apartment
      Santa Eulalia2501.700.000€Villa
      San Antonio150660.000€.Town House
      North5002.900.000€Country Home

      Conclusion and forecast

      The observed international interest on the island has resulted in an occurrence of a low ‘supply versus high demand’, rendering the Ibiza property market incredibly safe with extremely attractive values on a global scale.

      Following the recent international outbreak of COVID-19, global markets may adopt a ‘wait and see’ approach in the short term. However, although it is difficult to make predictions for the future at this early stage, demand has remained stable during this unprecedented crisis and clients remain positive.

      Recent studies have predicted a potential drop in the Spanish Real Estate market between 5 and 10%. Some areas in the Spanish property market will inevitably be strongly affected by the current crisis.

      However, exclusive locations like Ibiza, are least likely to be moved and we expect to see a year with increased opportunities, some swift sales, yet stable prices for the market in general.

      During the Covid-19 period, we have noticed an overall increase of enquiries and demand for properties on the island via our adapted digital e-working system and new website.

      Here’s an interview with Victor, Partner & Sales Director of Prestige Properties Ibiza, regarding the impact of Covid-19 on the Ibiza Property Market

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