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As we reach mid-2025, Ibiza's residential property market continues its remarkable upward trajectory, with average prices hitting €7,465 per square meter—a staggering 16.53% increase from just one year ago.
The island's transformation from seasonal party destination to year-round luxury haven has created unprecedented demand, particularly from international buyers who now represent 30% of all purchases. With strict development regulations limiting new supply and the European Central Bank's recent rate cuts improving financing conditions, the market shows no signs of cooling down.
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Property prices in Ibiza have surged 74% since 2017, with luxury villas now commanding €7,000-€10,000 per square meter and showing continued growth momentum in 2025.
Foreign buyers drive 52% of luxury villa purchases while new government regulations aim to balance tourism with local housing needs, creating a complex but still bullish market environment.
| Metric | Current Value (June 2025) | Year-over-Year Change |
|---|---|---|
| Average Price per m² | €7,465 | +16.53% |
| Apartment Price per m² | €6,564 | +3.56% |
| Villa Price per m² | €8,441 | +0.82% |
| Luxury Villa Average | €3 million | +7-12% |
| Foreign Buyer Share | 30% | Stable |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
What are the current average property prices per square meter in Ibiza as of June 2025?
Property prices in Ibiza have reached historic highs, with residential real estate averaging €7,465 per square meter as of June 2025.
The market shows clear differentiation between property types. Apartments in Ibiza currently average €6,564 per square meter, while detached houses and villas command significantly higher prices at €8,441 per square meter. In the luxury segment, properties in premium locations like Es Cubells, Talamanca, and Santa Eulalia regularly exceed €10,000 per square meter.
These prices represent a substantial premium over mainland Spain and even other Balearic Islands. While the Balearic Islands average €380,166 per property, this is nearly double the Spanish national average of €198,407. Ibiza's limited land availability, strict development regulations, and international appeal continue to drive these premium valuations.
For comparison, apartments specifically average around €7,200 per square meter, while villas range between €7,000 and €10,000 per square meter depending on location and specifications. The luxury villa segment, which represents 77% of high-end property stock, averages €3 million per property.
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How much have Ibiza property prices increased over the past 12 months?
Ibiza's residential property market has experienced a remarkable 16.53% price increase over the past 12 months, from May 2024 to May 2025.
This exceptional growth varies by property type and location. Apartments have shown a more moderate increase of 3.56% year-over-year, while houses recorded a modest 0.82% rise. However, certain areas have seen explosive growth—Santa Eulalia experienced an astounding 71% price increase in just one year, making it the most expensive area in Spain outside of Madrid.
The overall market recorded a 5.86% increase in average asking prices during 2024, building on the momentum from previous years. When we look at the broader trend, property prices have risen from €4,043 per square meter in 2017 to €7,043 in 2025, representing a 74% increase over eight years.
The year-over-year growth pattern shows interesting dynamics: 2023 saw apartments gain 11.67% and houses 8.47%, while 2024 recorded apartments rising 9.47% and houses 7.97%. The slight moderation in 2025 suggests the market may be entering a consolidation phase after several years of rapid appreciation.
Which areas in Ibiza are experiencing the fastest property price growth in 2025?
Santa Eulalia has emerged as the clear leader in price growth, with properties reaching nearly €9,500 per square meter after a phenomenal 71% increase in the past year.
Several other areas are also experiencing exceptional appreciation:
| Area | Current Price per m² | Annual Growth Rate |
|---|---|---|
| Santa Eulalia | €9,500 | +71% |
| Marina Botafoc | €7,945 | Strong growth |
| Dalt Vila - Figueretes - Playa d'en Bossa | €8,000+ | Above average |
| Sant Antoni | €3,470 | +15% |
| Sant Josep (coastal) | €4,191 | +8.2% |
Santa Eulalia's transformation into Spain's eighth most expensive area reflects its appeal to international buyers seeking year-round living options. The municipality combines excellent infrastructure, international schools, and a more family-oriented atmosphere compared to Ibiza's traditional party zones.
Marina Botafoc and the Dalt Vila area continue to attract luxury buyers with their proximity to Ibiza Town's amenities and harbor facilities. Sant Antoni, traditionally more affordable, is experiencing rapid gentrification with its 15% annual growth rate, while coastal properties in Sant Josep benefit from their proximity to famous beaches and sunset views.
What's driving the price difference between luxury villas and mid-range apartments in 2025?
Luxury villas in Ibiza command significantly higher prices than mid-range apartments, with villas representing 77% of the high-end property stock and averaging €3 million compared to €500,000-€800,000 for mid-range apartments.
The price differential is driven by several key factors. Foreign demand plays a crucial role—52% of luxury villa purchases come from international buyers, compared to 47.5% for apartments. Premium areas like Marina and Dalt Vila see even higher foreign demand at 72.9% for villas, with average prices reaching €2.5 million.
Market analysts predict a 7-12% rise in luxury real estate prices during 2025, significantly outpacing the broader market. This premium segment benefits from limited supply due to strict building regulations, strong international buyer interest from Germany, the UK, Netherlands, France, and increasingly from the Middle East and Switzerland.
The rental yield differential also contributes to price disparities. Luxury villas can achieve exceptional rental yields exceeding 7% annually, making them attractive investment properties. Additionally, luxury buyers seek turnkey properties with high specifications, private pools, sea views, and substantial land parcels—features that command premium prices in Ibiza's constrained development environment.
How do current June 2025 prices compare to five years ago?
Ibiza property prices have experienced dramatic appreciation over the past five years, with values increasing from €4,896 per square meter in 2020 to €7,465 in June 2025—a remarkable 52.5% increase.
The growth trajectory shows interesting patterns across this period. From 2020 to 2021, prices increased modestly by 1.6%, from €4,896 to €4,974 per square meter. However, the market acceleration has been remarkable since then, particularly post-pandemic as international buyers rediscovered Ibiza as a year-round lifestyle destination rather than just a summer party island.
Looking at the longer-term perspective, the cadastral value of residential properties doubled from €47,679 in 2006 to €95,723 in 2021, representing a 100.76% increase over 15 years. Since 2020, the market has experienced unprecedented growth, with some specific areas like Santa Eulalia seeing increases of over 70% in just the past year alone.
The transformation reflects several structural changes: Ibiza's evolution from seasonal destination to permanent residence location, infrastructure improvements including 5G technology deployment, and the arrival of digital nomads and remote workers seeking Mediterranean lifestyle with connectivity.
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What are expert predictions for Ibiza property prices over the next 5-10 years?
Real estate experts provide cautiously optimistic forecasts for Ibiza's property market, expecting price consolidation in the near term followed by continued appreciation driven by structural factors.
For the short term (2025-2027), analysts predict market stabilization following the 2022-2024 peak period. Prestige Properties expects sales to stabilize in 2025 with increased inventory providing more buyer choice, marking a transition from a seller's market to a more balanced environment. Some experts anticipate slight downside pressure over the next 12 months as the market digests recent gains.
Medium-term projections (2027-2035) remain positive, with continued appreciation expected based on several key drivers:
- Ibiza's ongoing evolution from party destination to year-round living location
- Infrastructure improvements including 5G technology and transport upgrades
- Sustainable development initiatives attracting environmentally conscious buyers
- Limited development capacity ensuring scarcity value
- Growing international recognition as a lifestyle destination
Long-term forecasts suggest that while short-term price growth may moderate from the current 16.53% annual rate to single digits, Ibiza's unique position as a luxury lifestyle destination with severely constrained supply will continue supporting property values, with experts projecting average annual appreciation of 5-8% over the coming decade.
How are European Central Bank interest rate changes affecting Ibiza's property market in 2025?
The European Central Bank's monetary policy shift has created significantly more favorable conditions for Ibiza property buyers, with rates dropping from 4% in September 2023 to 2.25% by April 2025.
This dramatic rate reduction has translated into tangible benefits for the property market. Mortgage rates have stabilized at 3.32% in early 2025, down from peaks above 5% in 2023. Banks are now offering fixed-rate mortgages between 2% and 2.5%, making property purchases more accessible despite high absolute prices.
The impact on market activity has been substantial. New mortgage volumes reached €9.9 billion in early 2025, showing significant improvement from 2023 lows. This increased lending activity has supported continued demand, with buyers able to afford higher property prices due to lower monthly payments.
The monetary easing has particularly benefited the luxury segment, where international buyers often finance portions of their purchases. Lower rates have increased borrowing capacity by approximately 15-20%, enabling buyers to consider properties in higher price brackets. This dynamic has contributed to the continued strength in Ibiza's high-end market, where demand remains robust despite elevated valuations.
What new government regulations are impacting property prices as of mid-2025?
The Balearic government has implemented sweeping regulatory changes that are reshaping Ibiza's property market dynamics while attempting to balance tourism with local housing needs.
Housing regulations now require a minimum 5-year residency for affordable housing eligibility, with 30% of affordable homes reserved for people under 35. Crucially, 50% of all new developments must be protected or price-limited housing, with developers required to contribute 15% of land value. These measures aim to ensure local residents aren't priced out of the market.
Tourism restrictions have become particularly stringent:
| Regulation | Impact | Effective Date |
|---|---|---|
| Tourist license moratorium | No new licenses until 2026 | Current |
| VAT on holiday rentals | Increased from 10% to 21% | January 2025 |
| Apartment building rentals | Prohibited for tourism | 2024 |
| Unauthorized rental fines | Up to €400,000 | Current |
| Non-EU buyer tax | Proposed 100% tax | Under discussion |
These regulations are pushing property owners toward long-term residential rentals, with the government offering 80% fine reductions for conversions from tourist to residential use. While these measures may moderate price growth in some segments, they're also reducing supply in the purchase market as owners hold properties for long-term rentals, potentially supporting prices.
How is foreign buyer demand shaping the market in June 2025?
Foreign buyers continue to be a dominant force in Ibiza's property market, representing 30% of all home purchases in the Balearic Islands and driving premium segment growth.
The international buyer profile has evolved significantly. Traditional markets remain strong—Germany, the United Kingdom, Netherlands, and France continue to lead foreign purchases. However, 2025 has seen growing interest from the Middle East and Switzerland, with these buyers particularly focused on ultra-luxury properties above €5 million.
Foreign demand varies significantly by property type and location. In the luxury villa segment, international buyers account for 52% of purchases, while their share in apartments stands at 47.5%. Premium areas see even higher concentrations—Marina and Dalt Vila record 72.9% foreign demand for villas, with average transaction values of €2.5 million.
The proposed 100% tax on purchases by non-EU residents represents a significant potential disruption. While still under discussion, this measure aims to discourage speculation and ensure housing availability for locals. However, EU buyers would remain unaffected, potentially shifting demand dynamics within the international buyer pool rather than reducing it overall.
What's the outlook for second homes and holiday rental investments in 2025?
The second home and holiday rental market in Ibiza faces a complex landscape in 2025, with strong underlying demand meeting increasingly restrictive regulations.
Despite regulatory headwinds, demand for second homes remains robust—75% of property purchases in 2023 were for second or vacation homes. However, the holiday rental market confronts significant challenges with a zero-growth policy for accommodation licenses and automatic expiration of unused licenses after three years.
The regulatory environment has become particularly challenging for short-term rental investors:
- Complete moratorium on new tourist licenses until at least 2026
- 21% VAT on holiday rentals (doubled from 10%)
- Prohibition of holiday rentals in apartment buildings
- Fines exceeding €400,000 for unauthorized tourist lettings
- Automatic license expiration after three years of non-use
These restrictions are fundamentally reshaping investment strategies. Many owners are converting to long-term residential rentals, incentivized by 80% fine reductions for conversions. While this limits income potential compared to peak-season tourist rentals, it provides stable year-round revenue and compliance with regulations. For new investors, purchasing properties with existing tourist licenses has become increasingly valuable, with licensed properties commanding premiums of 15-25% over comparable unlicensed properties.
How does Ibiza's property market compare to other Mediterranean destinations in 2025?
Ibiza commands a significant price premium over most Mediterranean destinations, positioning itself firmly in the luxury segment alongside the French Riviera while surpassing traditional competitors.
Within the Balearic Islands, Ibiza's average prices exceed neighboring islands despite their larger size and development options. Mallorca, offering larger estates and more development land, provides more affordable entry points starting around €4,000 per square meter. Menorca's coastal vacation homes average €4,500 per square meter, while exclusive Formentera, known for barefoot luxury, approaches Ibiza's price levels but with limited inventory.
Compared to the broader Mediterranean:
| Destination | Average Price per m² | Market Characteristics |
|---|---|---|
| Ibiza | €7,465 | Limited supply, luxury focus, lifestyle destination |
| French Riviera | €6,000-€15,000 | Established luxury market, year-round appeal |
| Costa del Sol | €3,000-€5,000 | More accessible, larger development capacity |
| Greek Islands | €2,500-€4,000 | Emerging market, fewer restrictions |
| Turkish Riviera | €1,500-€3,000 | Value market, currency advantages |
Ibiza's premium pricing reflects its unique combination of limited land availability, strict development controls, established luxury infrastructure, and transformation into a year-round lifestyle destination. While Greece and Turkey offer more affordable Mediterranean options, they lack Ibiza's prestige factor and established international community.
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What specific property types are seeing the biggest price increases in 2025?
Luxury villas and premium location apartments are experiencing the most significant price appreciation in Ibiza's 2025 market, with waterfront properties leading all categories.
The luxury villa segment, representing 77% of high-end property stock, continues its strong performance with 7-12% annual price increases predicted for 2025. These properties, averaging €3 million, benefit from exceptional rental yields exceeding 7% annually and strong international demand. Villas with sea views, private pools, and substantial land parcels command the highest premiums.
Specific property categories showing exceptional growth include:
- Waterfront villas: €10,000+ per m², 15-20% annual appreciation
- Renovated fincas: €8,000-€12,000 per m², benefiting from authenticity trends
- New-build eco homes: €7,500-€9,000 per m², driven by sustainability focus
- Penthouses in Ibiza Town: €8,000-€10,000 per m², limited supply driving prices
- Properties with tourist licenses: 15-25% premium over unlicensed equivalents
Traditional apartments in secondary locations have shown more modest growth at 3.56% annually, while houses recorded just 0.82% appreciation. The market clearly favors unique, high-specification properties in prime locations over standard residential units. Properties combining luxury amenities with valid tourist licenses represent the sweet spot for appreciation, as the license moratorium creates scarcity value for income-generating assets.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Yes a lot - Ibiza's property prices continue their strong upward trajectory in 2025, with residential real estate appreciating 16.53% year-over-year and luxury segments growing even faster at 7-12% annually.
While regulatory changes and market maturation may moderate the explosive growth seen in recent years, fundamental drivers including limited supply, international demand, and Ibiza's transformation into a year-round lifestyle destination ensure continued price appreciation. Expert forecasts suggest sustainable growth of 5-8% annually over the coming decade, making Ibiza one of Europe's most dynamic property markets.
Sources
- Home Booker - Ibiza Real Estate Prices 2025
- Indomio - Ibiza Real Estate Market Data
- Engel & Völkers - Ibiza Property Prices
- Ibiza International - Property Market 2025
- La Voz de Ibiza - Santa Eulalia Most Expensive Area
- Diario de Ibiza - Foreign Luxury Demand
- Ibiza Prestige - Market Report and Forecast 2025
- White Island Realty - Market Report April 2025
- Casa Viva Ibiza - New Taxes and Restrictions 2025
- Spanish Property Insight - Balearic Property Analysis
-Ibiza Property Market Forecast
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We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.