Resilient, Desirable, and Still Growing
As of May 2025, Ibiza’s real estate market remains one of the most stable and appealing destinations for property investment in Europe. The island continues to attract international attention thanks to its unique blend of natural beauty, lifestyle quality, limited development, and consistent property value growth. While the broader European market has seen periods of hesitation, Ibiza has shown itself to be an exception with positive movement across most property categories.
Consistent Growth in Property Values
In 2024, Ibiza recorded a 5.86 percent increase in average asking prices, marking another year of reliable gains. According to Prestige Properties, the average price per square meter now stands at €7,043, up significantly from €4,043 in 2017. This long-term appreciation demonstrates the island’s strength as a secure real estate market.
Luxury remains a key feature of the island’s housing stock. Some high-end villas are now reaching average prices above €10,000 per square meter, particularly in sought-after areas like Es Cubells, Talamanca, and parts of Santa Eulalia. These price points reflect not only the quality of the properties themselves but also the scarcity of new developments.
A Strong and Diverse Buyer Base
International buyers continue to play a major role in the Ibiza market. Clients from Germany, the United Kingdom, the Netherlands, France, and the United States are among the most active, with a growing number of buyers from the Middle East and Switzerland joining the mix.
There is a noticeable shift in the type of purchases being made. More people are buying homes for long-term living rather than holiday use. With improved digital infrastructure, international schools, and access to healthcare, Ibiza is becoming a preferred location for those who want to live and work in a Mediterranean setting all year round.
What Buyers Are Looking For
The market offers a variety of property types to suit different buyers. Here are some current averages, based on verified market data:
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Apartments: Around €6,515 per square meter, with average total prices near €647,000.
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Detached Houses: Around €7,558 per square meter, with average prices exceeding €1.5 million.
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Traditional Fincas: Often exceed €10,000 per square meter, with total property prices over €5 million due to land size and heritage value.
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Luxury Villas: Typically priced at over €7 million in prime locations.
Buyers are increasingly focused on privacy, sea views, outdoor living space, and modern sustainability features. Homes that include solar panels, natural insulation, water recovery systems, and home offices are more in demand than ever.
Supply Limitations Maintain Market Strength
Ibiza's development is tightly controlled, which keeps supply limited. The average time to obtain a major building license is now over 26 months. This bottleneck, while frustrating for some, plays a key role in preserving the island’s character and protecting property values. Many buyers have instead shifted focus to purchasing older properties for refurbishment. In fact, rehabilitation projects doubled in 2024.
This lack of oversupply has helped Ibiza avoid the volatility seen in other Mediterranean markets. Even during global slowdowns, the combination of limited stock and continued demand keeps prices stable or rising.
Area Spotlights
Certain zones continue to outperform others. For example, Talamanca experienced a 7.3 percent rise in asking prices last year, fueled by proximity to Ibiza Town and a blend of modern developments and natural surroundings. San Antonio saw a 5 percent rise as more buyers look for value in up-and-coming areas.
Santa Gertrudis and San José also remain perennial favorites, particularly among families and those seeking large plots with easy access to town and beaches.
Forecast for the Rest of 2025
Looking forward, forecasts predict continued growth between 5 and 10 percent for the remainder of the year. This is based on strong fundamentals, including international demand, lack of new construction, and Ibiza’s growing reputation as a full-time residential destination.
Rental yields are also healthy. While tourist rentals continue to face regulatory tightening, long-term rentals and licensed high-end holiday lets are achieving good returns, especially in well-managed properties.
Conclusion
The Ibiza property market in May 2025 is defined by steady price growth, high demand, and limited supply. It remains a sound and attractive investment opportunity for both short and long-term buyers. Whether purchasing a family home, a holiday villa, or an income-generating property, Ibiza continues to offer exceptional value in one of Europe’s most desirable locations.
