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Property prices and rents in Ibiza continue their inexorable rise

Home / News / Property prices and rents in Ibiza continue their inexorable rise
Home / News / Property prices and rents in Ibiza continue their inexorable rise
Property prices and rents in Ibiza continue their inexorable rise

IbizaPreservation’s Sustainability Observatory calls for a social contract that protects the right to housing

Ibiza, 20/07/2022 – The price of housing in Ibiza continues to rise year on year, according to IbizaPreservation’s Sustainability Observatory. The finding, which is a cause for concern, was uncovered by the Observatory’s analysis of data as part of its 2021 Sustainability Report, a study financed by the Consell of Ibiza.

From 2006 to 2021, the average cadastral value of residential property – a figure that is generally below market value – doubled, increasing by 100.76% from €47,679.83 in 2006 to €95,723.08 in 2021. In the past year, the increase has slowed, standing at 0.6%, but this is still double the increase of 0.3% for the Balearics and continues to reflect the unstoppable rise in the price of residential property on the island.

According to idealista, the average market value of homes rose from €4,896 per square meter in 2020 to €4,974 in 2021, an increase of 1.6%. This figure is 56% higher than the Balearic average and 175% higher than the national average of €1,808.

During this period, property values rose in all municipalities. The steepest rise was seen in the municipality of San José, at 11.7%, followed by Santa Eulalia at 11.6%, and Ibiza Town, where prices rose 6.3%. The increase in San Antonio and San Juan were less pronounced, at 3.7% and 2.8% respectively.

A review of property prices by municipality during 2021 revealed that San Juan was the most expensive at €6,038 per square meter. This was followed by San José at €5,383 per square meter, Santa Eulalia, where the price per square meter reached €5,232, and Ibiza Town, where the cost was €5,118. At €3,906, San Antonio has the lowest cost per square meter.

According to the data from idealista, rents also continue to rise inexorably. As of 31 December 2021, rents increased year-on-year, rising by 11.3% in Ibiza Town, 6.9% in San Antonio, and 6.8% in San José. Santa Eulalia is the only municipality where rents were unchanged. There was insufficient data to assess the variation in San Juan.

The data also confirms that there are seasonal variations in rental values. Prices increase in the summer season and decrease during the winter period, but the decrease is less than the increase, generating a year-on-year increase. During 2021, rents San Antonio increased by 12.4% from January to June, after which they fell by 4.9%. In San José they increased by 10.8% and then fell by 3.7% by December. The increase in Santa Eulalia from January to June was 10.3%, its subsequent drop being more pronounced than in the rest of the municipalities at 9.3%. In Ibiza, rents increased by 11.9% during the summer and only decreased by a paltry 0.6%, generating the highest cost of rental cost on the island.

Itziar Arratibel, technical coordinator of the Observatory, expressed her regret at the situation, saying, “The trend on the island is far from meeting United Nations Sustainable Development Goal 11 that seeks the generation of inclusive cities by 2030, with a specific goal of achieving access to affordable housing for all citizens. Access to housing, rather than a right, has become a privilege.”

For her part, Inma Saranova, director of IbizaPreservation, focused on the need for a social contract that protects the right to decent and affordable housing, where institutions and citizens explore the best ways to provide housing as one of the fundamental pillars of people’s well-being.