This sounds rather resolute and strange from a real estate broker, but it has a grain of truth. If no more houses were sold in Ibiza, the problem of the ever-increasing prices could, in principle, be solved.
Because for the local population who work in restaurants and hotels, an apartment in Ibiza is becoming increasingly unaffordable. The available apartments are bought by rich tourists who then rent them out for the main price to other rich tourists.
The government is trying to slow down growth and motivation by no longer issuing rental licenses. A finca or villa with a rental license is therefore becoming increasingly valuable.
Restaurants and hotels are trying to retain their staff by contributing to the living costs so that they can continue to work. These costs are passed on to the price of sunbeds, food, and other services. And as long as a group of tourists continue to pay these higher prices, there will be no real solution to the local housing problem.
The housing market and prices in Ibiza are under pressure due to the ever-increasing tourism. No longer buying real estate is impossible, as there is always supply and demand. But maybe the government can allocate properties only for locals who actually live (and work) on the island.
In 2023, the combined spending of tourists in Formentera and Ibiza reached 4.29 billion, a 20.8% increase from the previous year. Despite global economic concerns, the destination’s appeal continued to grow. The most prominent spenders were British and German tourists.
Ibiza expensive? Is stopping buying property the solution?
We can’t close our eyes to the fact that the housing situation in Ibiza has been significantly impacted by the tourism boom, leading to a severe affordability crisis for locals. Rising rental prices, driven by demand from tourists and seasonal workers, have made it increasingly difficult for long-term residents to find affordable accommodations. Essential workers such as nurses, teachers, and police officers are among the most affected, with some even forced to live in cars or caravans due to exorbitant housing costs.
Tourism has led to a surge in short-term rental platforms like Airbnb, which offer lucrative returns to property owners, exacerbating the housing shortage for locals. In turn, this has resulted in a squeeze on the availability of housing for permanent residents, pushing prices far beyond what many can afford. For instance, a local teacher reportedly flies in and out of Ibiza daily because living on the island is financially unfeasible.
Prou Ibiza
This crisis has sparked protests from groups such as “Prou Ibiza,” who argue that the government must impose stricter regulations on tourism and housing. They advocate for measures like limiting the number of tourists and creating policies to ensure affordable housing for residents. This growing frustration among locals reflects a wider European trend of overtourism impacting housing markets, particularly in popular destinations like Ibiza.
In addition, speculative investment in the property market has further driven up prices, as many homes are purchased as vacation rentals rather than residences for locals. The pressure to balance tourism with sustainable living conditions has become one of the most pressing issues facing Ibiza today. But Ibiza is creative and positive, so we’re confident all parties (locals, tourists and government) will find a suitable solution.
//
