Buy-to-let in Ibiza: a profitable long-term strategy?

Ibiza is much more than just a vibrant holiday destination – the Balearic island captivates visitors with its incomparable island flair, combining culture, history and a modern urban lifestyle. The charming old town of Dalt Vila and the lively streets of Eivissa town exude a unique atmosphere that appeals to tourists and investors alike.

As a potential property investor in Ibiza, are you looking for a long-term rental and want to benefit from the return on your holiday property? With the support of our estate agents, your property investment will be completely hassle-free.

A snapshot of the property market in Ibiza

The latest market report from Engel & Völkers Ibiza highlights the outstanding investment opportunities in Ibiza. The analysis differentiates between different types of properties, starting with houses in exclusive, very good, good and average locations:

• Exclusive top locations: Here, houses consistently achieve sales values of up to €5,500,500 and above
• Very good locations: In 2024, average prices ranged between approximately €3,500,000 and €5,000,000, representing a significant increase compared to 2023, when values ranged between €3,000,000 and €5,000,000.
• Good locations: In 2024, houses in good locations sold for an average of €2,000,000 to €3,500,000, whereas previously the maximum price achieved was €3,000,000.
• Average locations: Here, too, there was a positive trend, with prices in 2024 ranging from €1,200,000 to €2,000,000, compared with a range of €900,000 to €1,900,000 in 2023.

If the price structure outlined above confirms reliable stability and positive development for the house segment in Ibiza, our real estate agents can also point to a positive trend for apartments:

• Exclusive locations: Apartments here have a minimum value of approximately €1,600,000
• Very good locations: In 2024, prices averaged between €800,000 and €1,200,000, which represents a noticeable increase compared to the average values of €750,000 to €800,000 in the previous year.
• Good locations: Here, prices remained stable, ranging between €500,000 and €800,000.
• Average locations: Here, too, an upward trend can be observed, with prices in 2024 ranging from around €400,000 to €500,000, while the minimum value in 2023 was still estimated at €350,000.

In addition, the future security of the Ibiza property market is confirmed by transaction figures, with 1,584 residential property sales recorded in 2024 – representing an increase of 73% over a five-year period. At the same time, average sales prices rose by 33% over this period, clearly underlining the market's continued profitability.

Properties in Ibiza offer impressive rental potential all year round

If the positive development of the property market in Ibiza provides convincing reasons for buying a house or apartment, the addition of extensive rental options makes the property project even more attractive.

In our market report, we highlight the excellent rental potential, with weekly rents in Ibiza reaching up to €150,000 in the high season and weekly income of up to €8,000 in the low season. The lucrative combination of top rents during the high season and steady income during the low season ensures a continuous return on investment. In addition, the purchase of real estate is favoured by the sustained increase in value, so that, in the opinion of our experienced real estate agents, the long-term rental of real estate in Ibiza continues to prove particularly profitable.

As a prospective investor, would you like to make the most of the promising opportunities on the Ibiza property market? Contact us today and gain direct access to the most promising properties with rental options.

Engel & Völkers Ibiza: We look forward to hearing from you!