The real estate market in Ibiza continues to show strength and stability as we move through 2025. With its established reputation as a luxury destination and an evolving appeal as a year-round residence, Ibiza remains one of the most sought-after locations for international property buyers.
Whether you’re searching for a holiday villa, a finca to renovate, or an investment property with rental income, the Ibiza property market offers a mix of lifestyle and long-term value.
Consistent Growth in Property Prices
In the past year, property prices in Ibiza have increased by nearly 6%. The island-wide average is now around €7,000 per square metre, while prime areas like Es Cubells, Santa Eulalia, and Talamanca often exceed €10,000/m². This steady, controlled growth reflects strong demand, high build quality, and limited supply—rather than overinflation.
- Apartments average: €6,500/m²
- Detached houses: €7,500/m²+
- Coastal luxury villas: €7M+
- Traditional fincas with land remain highly desirable
Who’s Buying in Ibiza?
Buyers from Germany, the Netherlands, France, and the UK continue to dominate the market. However, there’s rising demand from the United States, Switzerland, and the Middle East, particularly among individuals seeking permanent relocation or extended stays. Ibiza’s growing infrastructure, international schools, and remote work-friendly homes support this trend.
What Features Are Most in Demand?
Today’s buyers prioritize:
- Sea views and private outdoor space
- Energy-efficient and eco-friendly design
- Solar panels, rainwater systems, and smart home features
- Dedicated home office areas
- Turnkey homes or renovation projects with character
Sustainability and functionality are now essential for modern buyers, especially those looking for year-round living in Ibiza.
Limited Supply Drives Long-Term Value
Due to strict planning laws and slow permitting, new developments are limited. This protects the island’s charm but also increases competition for quality listings. As a result, renovation opportunities in Ibiza are in high demand, with buyers embracing restoration as a way to personalise properties while preserving traditional architecture.
Hotspots to Watch in 2025
- Talamanca: Strongest price growth at 7%+ year-on-year
- San Antonio: Emerging as a value zone for long-term investors
- Forecasted price growth: 5–10% through late 2025
Rental Yields Remain Attractive
Both holiday rentals and long-term leases continue to generate strong returns, especially for properties with rental licenses and up-to-date sustainability standards. Demand is particularly high in central and coastal zones, where licensed rentals consistently outperform.
Looking to Buy Property in Ibiza?
At Ibiza Hills Homes, we offer expert guidance tailored to today’s market. Whether you’re investing in a second home, purchasing a luxury villa for seasonal use, or targeting a high-return rental opportunity, we’ll help you navigate the legal, financial, and lifestyle factors involved in buying real estate in Ibiza.
Contact us today to explore the best properties for sale in Ibiza and secure your place in one of the Mediterranean’s most dynamic property markets.