Ibiza House Prices Are Growing
Ibiza house prices keep growing. The cost of buying and renting a property will continue to rise also next year.
Several studies point to the island as one of the most expensive areas for buying and renting holiday homes due to their high demand, this causes residents to be left out of the primary housing market, leading to a continuous increase in prices.
Spending the whole summer on the Spanish coast, especially when renting or thinking of buying a holiday house, has become much more expensive than last year. The whole Spanish coast is facing the same problem, not as much as the prices in Ibiza, the ones in Costa Cálidasuch as Murcia.
According to the report Housing in Costa 2017 published by TecniTasa, Ibiza is the most expensive place in Spain if you want to rent a home in front of the beach location.
And if you want to buy it? Be prepared for some crazy prices. Especially on the promenade of Vila, with reference to Joan Carles I Avenue, which has become one of the most exclusive areas in the country, where the square meter is sold for about 7,000 euros.
Another example of prices is for one-bedroom beachfront property in Talamanca, another one of the locations with the highest prices in Spain, with average values that stand around 15,000 euros per square meter, according to Tinsa.
The property market in the Pitiusas is in “a clear recovery”, which for a long time already has been obvious to the residents, it has become one of the main issues on the island. The houses that should be available in the primary home market pass to the second or convert as holiday homes when they are free. This is causing a shortage and the rise of prices for residential houses, a tendency that will continue next year too.
The Investment of Buying to Rent
The rent on beach houses follows the same level of recovery of that the sale of holiday homes, which means that they are becoming more expensive.
And the economic recovery of the country has also reactivated demand, not only to rent during holidays, but it has become one of the safest investments and quick repayment: to buy a house in Ibiza to then rent it during the summer season. This situation and the rise of online platforms dedicated exclusively to holiday rentals have helped to boost prices.
According to the TecniTasa report, the prices on the Spanish coast differentiate widely from north to south: while on the coast of Burela you can rent a flat of 60 meters for 200 euros a week, in Cala Martina (Santa Eulària), the price of a 100 meters holiday home is 3,400 euros for the same time.
This area was one of the most expensive in the last year, as the price to rent on the beachfront increased by 68.3%. More expensive than last year is an apartment of 80 square meters on the promenade of Sant Antoni, which has gone from 1,800 to 2,400 euros.
In Platja d’en Bossa, for 70 square meters, you have to pay 2,300 euros, while two years ago the prices did not reach 1,700 euros.
In the Balearic Islands, according to the report, prices have skyrocketed, with Ibiza being the most expensive place to rent with apartments in Sant Antoni, Santa Eulària, Sant Josep, or the port of Ibiza with rents ranging between 1,500 and 3,400 euros.
The conclusion of all this data is that the sale and rental prices of a holiday home are the leaders of the real estate market in Ibiza, and is generating a lot of wealth. A wealth that, on the other hand, is expelling residents from the first property market.
