Ibiza, the alluring “White Isle” of the Mediterranean has a unique blend of natural beauty, vibrant music and arts culture and exclusivity that continues to captivate investors and buyers from around the world.
As we move into 2025, the island’s property market presents an attractive and ever-evolving landscape, as historic prices have been reached. Strong international demand and limited supply continue to drive its value as a secure and enduring property market.
Ibiza’s real estate market in 2025 is characterised by several key trends which we discuss here:
Sustained price growth, but at a slower pace
Following a price boom after the 2020 pandemic, prices continue their upward trajectory in 2025, albeit at a more moderate pace. Luxury villas, in particular, command higher prices, often exceeding 10,000 euros per square metre in prime locations and with sea views.Strong luxury segment
The high-end market remains exceptionally strong, with demand especially for properties offering privacy, pleasant outdoor areas and obviously sea views.Modern villas with every detail of design and comfort are in high demand, but there are still lovers of Ibizan architecture who are looking for authentic fincas that incorporate smart technology and sustainable elements, while maintaining their essence.
Increase in remote work and wellness
Digital nomads who can work remotely and wellness professionals see Ibiza as a highly desirable destination to settle in, due to its good climate and cosmopolitan atmosphere. This has driven demand for properties with dedicated home office spaces, strong internet connectivity and wellness areas such as yoga rooms, private gyms and meditation spaces.Booming tourist rental market
Ibiza’s status as a top tourist destination ensures a high demand for short-term rentals.Villas with valid tourist rental licenses are particularly attractive for investors. On the one hand, because due to the current moratorium they are no longer granted as new properties and above all because they generate a high yield of between 5 and 8% per annum. In the luxury sector, weekly rates in high season can range from 10,000 to 50,000 euros.
It is important to remember that the regulation on tourist licensing is very strict to control the fragile balance between tourism and the needs of residents, and therefore non-compliance results in high fines.
