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 from the primary home 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, it becomes much more expensive than last year. But not the whole Spanish coast is facing the same problem, as the prices in Ibiza have nothing to do with, for example, the ones in Costa Cálida (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.
And if you want to buy? 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.
Concerning the prices of one-bedroom beachfront properties, Talamanca is 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”, declares the property valuation company, which has detected what is already obvious among the residents, because 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 of beach houses follow the same level of recovery 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.
In fact, this area was one of the most expensive in the last year, as the price of rent on the beach front increased by 68.3%. Also 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 rent of the holiday home leads the real estate market of Ibiza and is generating a lot of wealth. A wealth that, on the other hand, is expelling residents from the first property market.