The average price of new housing in the Balearic Islands has closed 2025 with a year-on-year increase of 10.1%, to 3,084 euros per square meter, the highest level in the entire historical series, according to the latest report on Trends in the Real Estate Sector prepared by Sociedad de Tasación. Ibiza and the rest of the islands remain among the areas with the highest real estate tension in Spain, both in terms of prices and the economic effort required to buy a home.
The increase in the price of new construction has a direct impact on Ibiza, where the scarcity of available land, the pressure of demand and the weight of the tourist market continue to condition access to permanent housing. The report underlines that the Balearic Islands stands out for having one of the highest Real Estate Effort Indexes in the country, well above the national average.
Almost 20 years of salary to buy a home in the Balearic Islands
The study points out that, despite a slight year-on-year decrease of 3.7%, in the Balearic Islands 19.4 years of full salary are needed to buy a home by the end of 2025. This figure contrasts with the national average, which stands at 7.6 years of salary, which shows the structural difficulty of access to housing on islands such as Ibiza, where salaries do not grow at the same rate as real estate prices.
The situation in Ibiza is part of a context of strong residential pressure, which has already been addressed on several occasions by the island and regional administrations in view of the impact on essential workers and permanent residents, a recurring problem on the island.
Domestic market also sets record highs
At the national level, the price of new housing has risen by 8.9% year-on-year and 4.7% half-yearly, reaching 3,298 euros per square meter, a new all-time high. The report attributes this performance to sustained demand, favorable financing conditions and limited supply, especially in stressed markets such as the Balearic Islands.
A typical 100-square-meter home now averages 329,800 euros in Spain, a reference that in areas such as Ibiza is easily surpassed due to the particularities of the island market.
Balearic Islands, among the communities with the highest price increases
By autonomous communities, the Balearic Islands is among the regions with the highest price increases in 2025, behind only the Community of Madrid. The archipelago shares this scenario with Catalonia and the Valencian Community, all of them with increases of over 8%.
In addition, Palma de Mallorca is among the provincial capitals where new housing is already at record highs, a trend that also extends to the rest of the Islands and which reinforces the pressure on tourist municipalities such as Ibiza, where new housing development is still limited.
Rising construction costs and supply pressure
Sociedad de Tasación’s report highlights that the cost of new construction has risen by 3.3% year-on-year, to 1,360 euros per square meter, a factor that makes residential development in the Balearic Islands and Ibiza even more expensive. This rise is attributed to the lack of skilled labor and the structural limitations of the sector, in addition to the new technical and regulatory requirements set out in the Technical Building Code.
These cost pressures make it difficult to expand the supply of housing, especially in island territories where there is little room for urban growth.
More efficient housing, but not more affordable
Despite the increase in prices, the report reflects an advance in sustainability: 76% of the homes started in 2025 have an A energy rating in terms of emissions, and 71% achieve maximum efficiency in energy consumption. This is positive from an environmental point of view, but it does not compensate for the problem of housing accessibility in Ibiza and the Balearic Islands, where prices continue to be out of line with the purchasing power of the local population.
