Lucas Fox Spanish Real Estate Market Analysis Q1-Q3 2019: Ibiza & Menorca

Property prices increase by over 10% in the Balearic Islands, with Menorcan towns seeing some notable rises.

Real Estate Market Analysis Q3 2019 - Balearic Islands

It has been a fairly turbulent few months politically for Spain and the recent elections were once again inconclusive with no overall majority for Pedro Sánchez and his socialist party (PSOE). However they have reached a preliminary coalition deal with the anti-austerity Podemos party to try to form a government. This should bring greater stability to the country, which is good news for the country’s property market.

Read our full analysis of Spain’s property market here

Balearic Islands

Volume of Sales – Balearic Islands

Compared to the second quarter of 2014 the number of transactions in the Balearic Islands in the second quarter of 2019 has risen from 2,548 to 4,496, an increase of 59%. However, the number of sales is still 36% below the second quarter of 2007 (6,317 sales), around the peak of Spanish sales transactions. (Ministry of Development, Spain)

Year-on-year the number of sales transactions decreased by 21% in the second quarter of 2019. However, when compared to the first quarter of 2019 sales have risen by nearly 6%. (Ministry of Development, Spain)

Volume of Sales – Balearic Islands

New Homes Sales – Balearic Islands

Sales of new homes in the Balearic Islands represented 8% of the total number of sales in the second quarter of 2019, a higher proportion than in the second quarter of 2018 (5%). The proportion has reduced significantly since the second quarter of 2007 when 37% of the total sales were for new homes. (Ministry of Development, Spain).

Prime Sales – Balearic Islands

Latest official data shows that the number of prime market sales transactions (over €900,000) in the Balearic Islands in the first quarter of 2019 increased by 2% compared to the prime sales in the first quarter of 2018, from 88 to 90 sales. The number of prime sales in the whole of 2018 (388 sales) has increased by 16% when compared to the number of prime sales in the whole of 2014 (335 sales). (Ministry of Development, Spain)

Value of Sales – Balearic Islands

The total value of sales transactions in the Balearic Islands in the second quarter of 2019 decreased by 14% over the amount of trading in the same period in 2018, but when compared to the first quarter of 2019 it rose by 11%. Compared to the second quarter of 2014 the total value of sales transactions has increased by 84% but it is still 29% below that of the same quarter of 2007. (Ministry of Development, Spain)

Ibiza

Volume of Sales – Ibiza

Bucking the national trend, the number of sales transactions in Ibiza Town in the second quarter of 2019 (133 sales) increased by 2% compared to the same quarter in 2018 (131 sales). Compared to the second quarter of 2014 (183 sales) the number of transactions is down by 27% and it is still 47% below the second quarter of 2007 (253 sales). (Ministry of Development, Spain)

The number of sales transactions was also up in Santa Eulària des Riu in the second quarter of 2019 (126 sales), increasing by 5% compared to the same quarter in 2018 (120 sales) and by 10% when compared to the first quarter of 2019 (115 sales). Compared to the second quarter of 2014 (80 sales) the number of transactions has risen by 58% but it is still 58% below the second quarter of 2007 (283 sales). (Ministry of Development, Spain)

The number of sales transactions in Sant Josep de sa Talaia in the second quarter of 2019 (105 sales) decreased by 27% compared to the same quarter in 2018 (143 sales). However, sales increased by 13% when compared to the first quarter of 2019 (93 sales). Compared to the second quarter of 2014 (109 sales) the number of transactions has decreased by 4% and it is still 43% below the second quarter of 2007 (184 sales). (Ministry of Development, Spain)

Volume of Sales – Balearic Islands - Ibiza

New Homes Sales – Ibiza

Sales of new homes in Ibiza Town represented 9% of the total number of sales in the second quarter of 2019, a smaller proportion than in the second quarter of 2018 (12%). The proportion is still notably less than in the second quarter of 2007 when 51% of the total sales were for new homes. (Ministry of Development, Spain)

Sales of new homes in Santa Eulària des Riu represented 16% of the total number of sales in the second quarter of 2019, a higher proportion than in the second quarter of 2018 (5%). The proportion is still notably less than in the second quarter of 2007 when 53% of the total sales were for new homes. (Ministry of Development, Spain)

Sales of new homes in Sant Josep de sa Talaia represented 4% of the total number of sales in the second quarter of 2019, a smaller proportion than in the second quarter of 2018 (10%). The proportion is still notably less than in the second quarter of 2007 when 39% of the total sales were for new homes. (Ministry of Development, Spain)

Average Sales Prices – Ibiza

Average property prices across the Balearic Islands showed an annual increase of 10.6% in September 2019, ending the month on €3,064 per square metre. Average prices in Ibiza Town and Sant Josep de sa Talaia showed slight increases, ending the month on €5,169 per square metre (0.8% increase) and €5,108 per square metre (0.3% increase) respectively. Prices in Santa Eulària des Riu, however, showed a decrease, averaging €4,818 per square metre (1.3% decrease) in September 2019. Ibiza’s most sought-after areas have all seen significant price increases since September 2014. In Sant Josep de sa Talaia they have increased by more than 81%, in Ibiza Town by almost 70% and in Santa Eulària des Riu by almost 67%. The Balearic Islands as a whole have registered price increases of nearly 60% in the five years to September 2019. (Idealista, resale property prices)

Average Sales Prices – Balearic Islands - Ibiza

Average Rental Prices – Ibiza

Average rental prices in Ibiza Town showed an annual decrease of 7.3% in September 2019, ending the month on €18.4 per square metre. However, average rental prices in Sant Josep de sa Talaia and Santa Eulària des Riu both registered an annual increase, ending the month €17.2 per square metre. (1.6% increase) and €17.3 per square metre (6.8% increase) respectively. (Idealista)

Menorca

Volume of Sales – Menorca

The number of sales transactions in Ciutadella de Menorca in the second quarter of 2019 (123 sales) decreased by 26% compared to the same quarter in 2018 (166 sales). Compared to the second quarter of 2014 (58 sales) the number of transactions has risen by 35% but it is still 58% below the second quarter of 2007 (295 sales). (Ministry of Development, Spain)

The number of sales transactions in the Menorcan capital Mahón in the second quarter of 2019 (113 sales) decreased by 5% compared to the same quarter in 2018 (119 sales). However, they increased in the second quarter by 18% when compared to the first quarter of the year (96 sales). Compared to the second quarter of 2014 (62 sales) the number of transactions has risen by 82% but it is still 39% below the second quarter of 2007 (184 sales). (Ministry of Development, Spain)

New Homes Sales – Menorca

Sales of new homes in Ciutadella de Menorca represented 8% of the total number of sales in the second quarter of 2019, a smaller proportion than in the second quarter of 2018 (11%). The proportion is still notably less than in the second quarter of 2007 when 63% of the total sales were for new homes. (Ministry of Development, Spain)

Sales of new homes in Mahón represented 2% of the total number of sales in the second quarter of 2019, a smaller proportion than in the second quarter of 2018 (6%). The proportion is still notably less than in the second quarter of 2007 when 54% of the total sales were for new homes. (Ministry of Development, Spain)

Average Sales Prices – Menorca

Average property prices across the Balearic Islands showed an annual increase of 10.6% in September 2019, ending the month on €3,064 per square metre. Average prices in Ciutadella de Menorca, Es Mercadal and Mahón also increased, ending the month on €2,194 per square metre (2.5% increase), €2,270 per square metre (6.9% increase) and €1,974 per square metre (4.8% increase) respectively. Since September 2014 property prices in Mahón have gone up by over 32%, in Es Mercadal by more than 24% and in  Ciutadella de Menorca by 20%. (Idealista, resale property prices)

Average Sales Prices – Balearic Islands: Menorca

Average Rental Prices – Menorca

Average rental prices in Ciutadella de Menorca showed an annual increase of 2.1% in September 2019, ending the month on €8.8 per square metre (2.1% increase) (Idealista)

Tourism & Foreign Buyers, Balearic Islands

The number of passengers arriving at Ibiza airport in the first nine months of 2019 was just over 7 million, a slight increase of just under 1% over passenger arrivals in the same period in 2018. (Aena)

The number of passengers arriving at Menorca airport in the first nine months of 2019 was just over 3 million, a increase of just under 2% over passenger arrivals in the same period in 2018. (Aena)

International tourism in the Balearic Islands in the first eight months of 2019 decreased very slightly, by 0.2%, over the same period in 2018. The region hosted just over 10.1 million international tourists in this period. (INE)

Foreign buyers in the Balearic Islands accounted for 27% of the total sales in the second quarter of 2019, a slightly smaller proportion than in the second quarter of 2018 (29%), and slightly higher than the proportion in 2012 when they accounted for 25% of all buyers. (Spanish Land Registry)

Lucas Fox Ibiza Buyer Profile

Lucas Fox Ibiza Buyer Profile - Balearic Islands

Lucas Fox Menorca Buyer Profile

Note the following figures are provisional:

  • INE (Tourism) (from January 2019)
  • Ministry of Development, Spain (from Q2 2019)

View Lucas Fox Spanish Real Estate Market Analysis Q1-Q3 2019: Spain

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