Balearic Islands, the clampdown on nightlife does not stop house prices

So much for the idea of a Spain where buying a house suits small wallets. On the contrary, the Iberian Peninsula is actually the second country in the world to attract the capital of multi-millionaires. According to the Wealth Report 2024 by Knight Frank, it is in fact the destination, after France, that catalyses the most international investments in the luxury residences sector, defined as prime residences. Where exactly? Certainly in the capital, Madrid, but even more so in the Balearic Islands.

According to data from the Consejo General del Notariado, house prices sold in the Balearic Islands shot up again, with an astonishing 18.4 per cent increase in January alone. According to the Wealth Report , a million dollars can make you quite comfortable in Madrid, where you could buy a spacious 96-square-metre flat, larger than many of the all-inclusive resort suites in the Balearic Islands. But only 50 square metres in Ibiza. If you are looking for more space, consider Marbella, where a million dollars can be enough to buy 101 luxurious square metres. That becomes 110 if you want to immerse yourself in the cosmopolitan hustle and bustle of Barcelona.

The location on the island with the highest average real estate prices, after Formentera, is Santa Eulàlia des Riu, the municipality in the northeast of Ibiza. Taking the prices recorded by the Idealista portal as a reference, in April the average price was 6,892 euros per square metre, an increase of 2.3% in one month, 4% compared to January and 9.9% compared to a year earlier. But what is on the market? Always consulting the portal of Idealista, those with a good wallet can buy a beautiful villa with four bedrooms and three bathrooms, swimming pool and a plot of 11 thousand square metres with 2.9 million euros, and a discount of 10 per cent. With 850 thousand euros he can buy a two-bedroom flat, with a total of 132 square metres, in Roca Llisa, also in the Santa Eulàlia area. Over the last ten years, there has been a steady increase in buying and selling in Ibiza by international buyers. In 2022, out of the total number of exchanges, 44% was accounted for by foreigners looking for high-end homes (villas and renovated fincas). Houses in Ibiza in the prime nowadays cost an average of 950 thousand euros, while villas have an average price of 4 million euros.

With less than one million euros it is practically impossible to buy a villa in Formentera, and for flats it starts at 8 thousand euros per square metre. The average price recorded by Idealista in April 2024 is 8,271 euro per square metre, down 7.3% compared to a year earlier, partly due to the scarcity of supply which is reducing transactions on the market. On Idealista's site there is a purely local style property for sale in Cap de Barbaria with five rooms, 325 square metres of total surface area and a swimming pool for €4.9 million. And if you want to spend less? The least expensive flat is a one-bedroom solution in Es Pujols, 33 square metres with a small terrace for 242 thousand euros.