Buying Property in Ibiza

my post is more about the incredulity of people living on a small island about travel to work methods and times rather than the housing market, environmental issues or airport waiting rooms. though i should add that passing through ibiza airport outside the spanish school holidays is an absolute doddle.
 
Guernsey Channel Islands aswell, bank of mum and dad is needed here now, house prices are insane. £700k my three bed is worth, bought for £250k in 2004. I could just about afford to get on the ladder at that time, now I would not be able to dream of it. Surely a global problem in sought after destinations. Something will have to give eventually
 
cunninghamali said:
Yep only the rich or people with money can afford to buy now and everyone else has to rent for some ridiculous prices
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You might've noticed prices rocket in Madrid too.. this is partly because the comunidad of Madrid is effectively a tax haven under the partido popular regional government and so anyone with cash elsewhere in Spain is buying property in the capital and cheekily registering their padrón there
 
The Sun God said:
You might've noticed prices rocket in Madrid too.. this is partly because the comunidad of Madrid is effectively a tax haven under the partido popular regional government and so anyone with cash elsewhere in Spain is buying property in the capital and cheekily registering their padrón there
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There is an affordability crisis, globally. Central banks goosed the 1st world economies following the crisis in 2008 and again in 2020. They printed money and kept interest rates suppressed. The money eventually flowed into the stock market and real estate via the well-to-do (they didn't need to eat their stimulus, so they invested it), also caused inflation.

We are having the same problems here in the USA. Most people who don't already own a home can't participate in the market.

There are still cheap homes and rents in rural areas, but people need to be where the jobs are.

I come from a finance and banking background, and now work for a nonprofit financing developers of affordable multifamily housing for low/ moderate income people. The math is damn near impossible. There is no easy way out. I would speak more about it, but don't want to depress the forum.

Edit: FYI - this inflation was predictable and was the initial subject of the sustainable tread I started in January 2021.
 
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CasaNegron said:
We are having the same problems here in the USA. Most people who don't already own a home can't participate in the market.

There are still cheap homes and rents in rural areas, but people need to be where the jobs are.
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Due to supply and demand, it's a LOT worse in Ibiza than in most other places, even in other popular cities and islands worldwide.

I moved here from Brighton, UK (another extremely popular tourist destination, which has seen rental prices and house prices surge over the last few years, in particular post Covid) and it's significantly worse in Ibiza. The "summer rental" factor means that even a fairly basic 2 bedroom apartment, without any view and nowhere that desirable, can go for well over 2500 EUR per month (I've seen plenty at 3000 EUR+, let alone for nice family houses - have a look at Idealista) which means that the average worker here - and I don't mean the rather offensive and patronising 'peasant farmers' stereotype as alluded to on this forum - are struggling to be able to afford to live in Ibiza now. This also includes people who work in shops, offices, bars, restaurants and more importantly, in schools and hospitals. The lack of workers here is real and it is going to result in a very interesting summer for tourists...

Plus add in the lack of availability with places being snapped up super quick by those with large savings or on much higher salaries, plus places expecting 6 months up front, plus "agency fees", it cannot continue.

When we moved just over 18 months ago, prices were still high but not as crazy. It has increased around 50% in many places since then which is not sustainable.
 
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I agree the effects are exaggerating on islands. I lived on a couple for the last 15 years before moving back to the USA. The smaller, the island the worse it is. Part of the reason I left was cost of living.

Prices here in my new area (Florida), basically 3x between 2017 and 2022. In my county, a house that was $100k is now $300k, in just 5 years. Same with rents. I am sure salary levels didn't go up 3x. Industrial production didn't go up 3x either.

The house/ flat is not worth more, your money is just worth less. This is going to take decades to sort out.
 
Interestingly, the price to buy in Ibiza appears to have come down over the last 12 months, whilst rental prices go through the roof.

Still ridiculously high and prohibitively so for many people.
 
Ibiza has to do something or indeed like you say will be difficult for tourists. It's ridiculous they need workers, but the workers can't afford rental prices, they have to do something about it! Especially each year ibiza will get busier and busier
 
cunninghamali said:
Ibiza has to do something or indeed like you say will be difficult for tourists. It's ridiculous they need workers, but the workers can't afford rental prices, they have to do something about it! Especially each year ibiza will get busier and busier
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That totally baffles me. Ibiza has LOTS of empty land (just look at satellite photos) except directly on the coast. The demand for cheap rentals is high. What's preventing the construction of cheap housing? Are construction costs on the island very high, do speculative land owners withhold land, or are government regulations making cheap construction impossible?

With the current rental prices, you can probably just install some living containers and rent them out for more money than a modest apartment would cost elsewhere...
 
All I can say, with my little knowledge of the island:
Why do the locals moan about the over-tourism.?
Who am I to say what is right or wrong for a place I visit just a few weeks a year?
Is it good to see the tourism business growing that fast in an ended territory?
Same population density of a country with towns like Berlin, Munich, Frankfurt, does it sound like ibiza?(with much more water)
You, and all the people who are looking at ibiza just like an hedonistic place, the capital of the techno world, you, are killing the place and the vibe.
Let the people who are living there all year round decide or not what is good or not for them and for them land.
 
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