Ibiza Housing ‘Crisis’: Leap of Faith Required

As we approach March, the month that direct international flights start in earnest, the Ibiza housing ‘crisis’ shows no sign of easing. I have seen this first hand in my own office as we have at least 4 walk-ins per day asking about rentals, not to mention all the email enquiries.

A temporary ban on construction plus an increase in demand has seen rental prices rocket over the last few years meaning it’s difficult to find summer or anual accommodation at reasonable rates.

A search on social media sites will see that 1 bedroom apartments are now fetching around 800-1000 euros per month all year round and up to double that for summer only. Renting a property in Ibiza now accounts for a massive 82% of salary even though the the EU recommends a maximum of 40%.

Although rental prices have increased, wages have remained stagnant widening the gap of affordability. A recent study revealed that in the modern Ibiza it can take up to 20 years to purchase a property with an average salary when financial guidelines recommend 4 years.

The good news is that not all landlords are rip-off merchants so it’s still possible to find decent lodgings especially when sharing. Ibiza prices have now become like all major cities of the world but as the government crack down on holiday rentals in communal blocks it’s hoped that more beds become available at affordable rates.

The even better news is that the main reason for the housing crisis is the high demand due in no small part to Ibiza’s incredible quality of living. So if you own property on the island or have a reasonably priced rental then you might consider yourself ‘lucky’ as others look for a way in.

If you are thinking of relocating to Ibiza for short or long term then don’t be too disheartened as it’s still possible to do so without breaking the bank although you may have to spend more in the short term to get your foot in the door until you have built up enough contacts to source more reasonable rates.

Living on a small island can be challenging and is not for everyone but the rewards are numerous, it just requires a small leap of faith.

Published by

Martin Makepeace

Englishman living and working in Ibiza since 1991. Entrepreneur with a passion for villas, boats, sunsets and San Antonio. Owner of Ibiza Property Shop and Ibiza Speedboats.

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