Over our usual Friday drinks a big debate rumbled. A studio apartment in San Antonio bay had just rented for 900 euros PCM on 12 month contract. A couple of our crowd shouted the usual ‘greed’ and ‘scandalous’ adjectives but I completely disagreed, I think it’s a fair price in the current market.
It’s no a secret that there’s a rental crisis on the island due to the most simple of economics: high demand and very low to almost non existent supply.
To cut a long story short, there used to be plenty of apartments to rent but now there’s very few because of varying factors however the overriding reason (in my humble opinion) is that Ibiza is such a great place to live that all those summer apartments have been taken up by the new wave of residents in search of a better life. Why else has the Ibiza population doubled in the last 25 years?
Anyway I digress, back to the accommodation crisis and a reasonable price to pay for a studio in San Antonio bay. I am of the opinion that 900 euros per calendar month is a decent price in 2024. Now before all the ‘Ibiza winter residents’ start screaming at their screens you have to understand that the market decides on the price then the landlord decides if they want to do a deal by lowering it for friends or family or raising the price to maximise their earning potential.
This is where our debate became heated. It’s easy to shout ‘greed’ but since when did maximising on your investments become a crime punishable by ostracisation? The blame can’t be laid at the doormat of the private landlord (although the so-called ‘agents’ have a lot to answer for) they are simply following market forces. Their apartment that rented for 240 euros per month for 6 months in 1994 is now worth 1500 euros per month on a 12 month contract in 2024. You might not like it but that’s how it is.
Regardless of market forces the situation has become very serious for nurses, doctors, police and teachers who are finding it nigh on impossible to source reasonably priced accommodation that is in line with their salary. Given the upward trajectory of White Isle real estate we’ve known for the best part of a decade that this moment has been coming and finding a solution lies squarely with the local and Balearic government who’s job it is to fill these public sector spaces.
Many moons ago when I worked in London I was paid a ‘large town allowance’ to compensate for the high cost of living and I also lived in subsidised accommodation provided by my employer.
This is over 35 years ago and it’s not rocket science to apply the same thinking to Ibiza in 2024. The local governments need to stop shrugging their shoulders and find a solution because it ain’t getting any better anytime soon. Yes there’s lots of building going on in Ibiza at the moment but have you seen the price of new apartments? Eye watering!
Time to think outside of the box. Disused public buildings need to be converted into low cost accommodation and land needs to be procured to build housing specifically for public sector workers. It’s the only way the island will continue to function unless they can magic up 200 cheap apartments from private owners which won’t happen and why should owners lower the prices because the government can’t get organised.
We are almost at the tipping point and big problems need radical solutions. It’s time to stop berating private owners on social media and put pressure on the respective governments who continue to stick their heads in the sand refusing to acknowledge the severity of the problem.
If a realistic solution isn’t found then public services will dwindle away on an island with an ever growing population. That’s the real story here, 900 euros PCM for a studio just emphasises the urgency.
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"MAN IN SAN AN" by Martin Makepeace 