Ibiza marks the highest rent increase in the Balearic Islands with a rise of 22.8%.

Rental prices continue to rise in the Balearic Islands and are once again at record highs. According to the Fotocasa real estate index for the month of October, the archipelago recorded an average increase of 9.7% year-on-year, while compared to September rents rose by 2.6%, standing at 19.04 euros per square meter.

October thus becomes the fifth consecutive month of increases in the Balearic market, with an increase of 1.69 euros per square meter over the same month last year. This growth means that a typical 80 square meter home is 135 euros more expensive today than in October 2023.

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Ibiza, the municipality where housing prices are the highest in the world

Among the five municipalities analyzed by Fotocasa, Ibiza is the one with the highest increase in the price of rent, with an annual increase of 22.8%. This is the highest variation in the Balearic Islands, well above the regional average and the rest of the towns studied.

After Ibiza, the most notable year-on-year increases were observed in:

• Palma, with 8.9%.

• Calvià, with 6.4%.

• Santa Eulària des Riu, with 4.3%.

• Llucmajor, with 1.7%.

All municipalities exceed the barrier of 15 euros/m² per month, but Ibiza once again stands out as one of the most stressed areas of the archipelago.

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Highest prices, in Calvià and Ibiza

In terms of price per square meter, Calvià tops the list with 22.87 euros/m², followed by Ibiza, with 21.90 euros/m². After them are:

• Santa Eulària des Riu, 19,99 €/m².

• Palma, 19,29 €/m², 19,29 €/m².

• Llucmajor, 16,06 €/m², 16,06 €/m².

The figures confirm that Ibiza and Calvià remain among the most expensive enclaves in the rental market not only in the Balearic Islands, but also in the country as a whole.

Balearic Islands, among the communities with the most expensive rents in Spain

The archipelago is again among the regions with the highest rental prices. Only Madrid ( 21.38 €/m²) and Catalonia (20.12 €/m²) exceed the Balearic Islands, which in turn is ahead of the Basque Country (17.43 €/m²).

The director of studies and spokesperson for Fotocasa, María Matos, warns of the magnitude of the current moment: “Never before have tenants faced such high levels“. According to the expert, the market has accumulated three consecutive years of record increases, although a change in the dynamics is beginning to be seen.

First signs of moderation

While the large capitals, traditionally more stressed, are beginning to moderate their growth to below 10%, it is now the rural areas and less populated municipalities that are registering double-digit increases, a phenomenon that Fotocasa interprets as a possible symptom of territorial rebalancing of the market.

In the absence of knowing the evolution of the coming months, Ibiza continues to be the hottest spot in the Balearic rental market, both in terms of price and growth rate.

Continue reading:

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• Families in the Balearic Islands already spend half of their income on rent, twice the national average