Robert Firth
HOUSE prices in Mallorca have stood still while prices in neighbouring Ibiza have skyrocketed.
While the cost per square metre in Palma in 2019 sits at €2,682, in Ibiza Town it is now €3,709, making it the most expensive city to buy a house in Spain.
The White Isle’s third largest town, Santa Eularia des Riu, is the third most expensive city to buy a house in Spain.
During the 2000s property bubble, house prices in Ibiza Town were relatively modest.
The Balearic town was the 45th most expensive city to buy a house in early 2008.
After the bubble burst later that year, Ibiza began to witness a surge in house prices.
The value of property in Ibiza has risen 56.5% in the past five years.
House prices in Mallorca have also increased substantially.
Last year, Mallorca saw an 11.4% surge in house prices.
Only in Madrid did house prices rise more, by 17.8%.
Of the top five most expensive Spanish cities to buy, house prices are only higher than their pre-crash levels in Ibiza Town and Santa Eularia des Riu.
Apartments in Ibiza Town are 27% more expensive than they were before the 2008 crisis, while those in Santa Eularia des Riu set buyers back 19% more.
Home ownership remains out of reach for many people living in the Balearic Islands.
Residents of the islands must allocate 10.8 years of their annual salary to get on the property ladder, compared to 6.4 years on average in the rest of Spain.
