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

Property prices in the Balearics, which include Ibiza and Menorca, were up by more than 6% in the year to December 2019.

Market Analysis: Ibiza & Menorca 2019

After two general elections in nine months, Spain now has its first ever coalition Government, made up of the Socialist Party (PSOE), headed up by Pedro Sánchez, and Unidas Podemos with its leader Pablo Iglesias. The new coalition will hopefully bring some level of stability after a fairly turbulent year politically and will be addressing political, territorial and social dimensions, which could be challenging but could see some positive outcomes.

Read our full analysis of Spain’s property market here

Ibiza

Average Sales Prices – Ibiza

Average property prices across the Balearic Islands showed an annual increase of 6.6% in December 2019, ending the year on €3,060 per square metre. In Ibiza, however, average prices in Ibiza Town showed a very slight annual decrease, of 0.2%, ending the year on €5,115 per square metre. Prices in Santa Eulària des Riu also showed a decrease, averaging €4,818 per square metre (1.9% decrease) in December 2019, whilst prices in Sant Josep de sa Talaia registered a small increase, of 0.2%, ending the year on €5,011 per square metre. Ibiza’s most sought-after areas have all seen significant price increases since December 2014. In Sant Josep de sa Talaia they have increased by almost 75%, in Ibiza Town by almost 66% and in Santa Eulària des Riu by almost 68%. The Balearic Islands as a whole have registered price increases of just over 56% in the five years to December 2019. (Idealista, resale property prices)

Average Rental Prices – Ibiza

Average rental prices in Ibiza Town showed an annual increase of 3.7% in December 2019, ending the year on €17.4 per square metre. Average rental prices in Santa Eulària des Riu and Sant Josep de sa Talaia also both registered an annual increase, ending the year on €16.4 per square metre. (12.6% increase) and €16.1 per square metre (1.3% increase) respectively. (Idealista)

Volume of Sales – Ibiza

Bucking the national trend, the number of sales transactions in Ibiza Town in the first nine months of 2019 (365 sales) increased by 7.7% compared to the same period in 2018 (339 sales). Again, against national trends, the number of sales is down compared to the first nine months of 2014 (460 sales), by almost 21%. It is still almost 47% below the same period in 2007 (683 sales). (Ministry of Development, Spain)

The number of sales transactions in Santa Eulària des Riu in the first nine months of 2019 (315 sales) decreased by 7.1% compared to the same period in 2018 (339 sales). Compared to the first nine months of 2014 (308 sales) the number of transactions has risen by 2.3% but it is still almost 46% below the same period in 2007 (579 sales). (Ministry of Development, Spain)

The number of sales transactions in Sant Josep de sa Talaia in the first nine months of 2019 (313 sales) decreased by almost 24% compared to the same period in 2018 (410 sales). Compared to the first nine months of 2014 (272 sales) the number of transactions has increased by 15.1% but it is still almost 52% below the number of sales in the same period in 2007 (649 sales). (Ministry of Development, Spain)

New Homes Sales – Ibiza

Sales of new homes in Ibiza Town represented 12.1% of the total number of sales in the first nine months of 2019, a larger proportion than in the same period in 2018 (10%). The proportion is still notably less than in the first nine months of 2007 when just over 47% of the total sales were for new homes. (Ministry of Development, Spain)

Sales of new homes in Santa Eulària des Riu represented 11.4% of the total number of sales in the first nine months of 2019, a larger proportion than in the same period in 2018 (6.2%). The proportion is still notably less than in the first nine months of 2007 when almost 41% of the total sales were for new homes. (Ministry of Development, Spain)

Sales of new homes in Sant Josep de sa Talaia represented 5.4% of the total number of sales in the first nine months of 2019, a smaller proportion than in the same period in 2018 (14.1%). The proportion is also notably less than in the first nine months of 2007 when almost 32% of the total sales were for new homes. (Ministry of Development, Spain)

Menorca

Average Sales Prices – Menorca

Average property prices across the Balearic Islands showed an annual increase of 6.6% in December 2019, ending the year on €3,060 per square metre. Average prices in Ciutadella de Menorca, Es Mercadal and Mahón also increased, ending the year on €2,200 per square metre (2.3% increase), €2,313 per square metre (5.2% increase) and €1,991 per square metre (4.4% increase) respectively. Since December 2014 property prices in Mahón have gone up by 28%, in Es Mercadal by just over 24% and in Ciutadella de Menorca by almost 17%. (Idealista, resale property prices)

Average Rental Prices – Menorca

Average rental prices in Ciutadella de Menorca showed an annual increase of 4.8% in December 2019, ending the year on €9 per square metre. However average rental prices in Mahón registered an annual decrease of 4.1%, ending the year on €7.3 per square metre. (Idealista)

Volume of Sales – Menorca

The number of sales transactions in Ciutadella de Menorca in the first nine months of 2019 (330 sales) decreased by almost 28% compared to the same period in 2018 (458 sales). Compared to the first nine months of 2014 (243 sales) the number of transactions has risen by almost 36% but it is still just over 50% below the same period in 2007 (663 sales). (Ministry of Development, Spain)

The number of sales transactions in the Menorcan capital Mahón in the first nine months of 2019 (318 sales) decreased by 6.5% compared to the same period in 2018 (340 sales). Compared to the first nine months of 2014 (186 sales) the number of transactions has risen by 71% but it is still just over 30% below the same period in 2007 (456 sales). (Ministry of Development, Spain)

New Homes Sales – Menorca

Sales of new homes in Ciutadella de Menorca represented 10% of the total number of sales in the first nine months of 2019, a similar proportion to the same period of 2018 (10.3%). The proportion is significantly less than in the first nine months of 2007 when almost 62% of the total sales were for new homes. (Ministry of Development, Spain)

Sales of new homes in Mahón represented 7.5% of the total number of sales in the first nine months of 2019, a larger proportion than in the same period in 2018 (5.3%). The proportion is notably less than in the first nine months of 2007 when 48% of the total sales were for new homes. (Ministry of Development, Spain)

Balearic Islands

Volume of Sales – Balearic Islands

Compared to the first nine months of 2014 the number of transactions in the Balearic Islands in the same period in 2019 has risen from 7,497 to 11,153, an increase of almost 50%. However, year-on-year the number of sales transactions in the first nine months of 2019 registered a decrease of 14% and it is still 34% below the number of sales in the same period in 2007 (16,909 sales). (Ministry of Development, Spain)

New Homes Sales – Balearic Islands

Sales of new homes in the Balearic Islands represented 8% of the total number of sales in the first nine months of 2019, a larger proportion than in the same period in 2018 (6.1%). The proportion has reduced significantly since the first nine months of 2007 when almost 33% 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 six months of 2019 (for which data is available) was the same is in the first six months of 2018 (197 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 first nine months of 2019 registered a decrease of 8.8% when compared to amount of trading in the same period in 2018. Compared to the first nine months of 2014 the total value of sales transactions has increased by just over 75% but it is still almost 27% below the total value in the same period in 2007. (Ministry of Development, Spain)

Tourism & Foreign Buyers, Balearic Islands

The number of passengers arriving at Ibiza airport in 2019 was just over 8.1 million, an increase of 0.6% over passenger arrivals in 2018. (Aena)

The number of passengers arriving at Menorca airport in 2019 was just under 3.5 million, an increase of 1.5% over passenger arrivals in 2018. (Aena)

International tourism in the Balearic Islands in the first eleven months of 2019 decreased slightly, by 0.8%, over the same period in 2018. The region hosted over 13.5 million international tourists in the first eleven months of 2019. (INE)

Foreign buyers in the Balearic Islands accounted for 28.2% of the total sales in the third quarter of 2019, a slightly larger proportion than in the third quarter of 2018 (27.9%), and larger than the proportion in the whole of 2012 when they accounted for almost 25% of all buyers. (Spanish Land Registry)

Lucas Fox Ibiza Buyer Profile

Lucas Fox Menorca Buyer Profile

Note the following figures are provisional:

INE (Tourism) (from January 2019)
Ministry of Development, Spain (from Q3 2019)

View Lucas Fox Spanish Real Estate Market Analysis 2019: Spain

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