The Balearic Islands have an estimated cumulative housing shortfall of around 17,000 homes when population growth and the increase in the housing stock are compared over the past 25 years, according to the newly launched Balearic Housing Observatory.
The Observatory, known as OHIB, was presented by the Balearic Government on September 17 with more than 20 indicators covering housing supply, prices, population, construction, tourist rentals and public housing.
The Government estimates that the islands' population grew by 46.3% between 2000 and 2025, while the number of homes increased by 31.5%.
The resulting gap is used to estimate around 17,000 homes that would have been needed to match population growth. However, the Government has specifically cautioned that this estimate does not necessarily correspond to the islands' actual current housing demand.
Population Grew Faster Than Housing
The Observatory's figures show a significant difference between demographic growth and the expansion of the housing stock.
Between 2000 and 2025, the Balearic population increased by 46.3%.
Over the same period, the number of homes increased by 31.5%.
The Government calculates that the difference represents an estimated 14.8% deficit in additional housing relative to population growth.
Applied across the islands, this produces the estimate of approximately 17,000 homes.
The figure should therefore be understood as an indicator derived from population and housing-stock growth rather than a count of people currently looking for a home.
Ibiza Has One of the Largest Gaps
The figures are particularly striking in Ibiza.
The Observatory estimates a 43.2% housing deficit associated with population growth on the island between 2000 and 2025.
Formentera's estimated gap is even higher at 54.3%.
By comparison, the corresponding figures are 11.4% for Mallorca and around 8.4% for Menorca.
These percentages do not mean that 43.2% of Ibiza's homes are missing.
They represent the difference between the growth rate of the population and the growth rate of the housing stock over the period analysed.
Ibiza Had 75,519 Homes in 2025
The Observatory records 75,519 homes in Ibiza in 2025.
Formentera had 5,089.
Across the entire Balearic Islands, the residential housing stock reached 618,908 homes.
Mallorca accounted for 479,516 and Menorca for 58,784.
Apartments make up approximately 66% of the total Balearic housing stock.
The average size of apartments is 128 square metres, while detached or single-family homes average 263 square metres.
The overall average size across the housing stock is 164 square metres.
The Government Warns About What the 17,000 Figure Means
The Housing Observatory's director-general, José Francisco Reynés, stressed that the estimated deficit should not automatically be interpreted as the number of homes currently required by the market.
Population growth and housing construction are not directly interchangeable measures of housing demand.
For example, one household can contain several people, while some homes may be second residences, vacant properties or otherwise unavailable for permanent occupation.
For that reason, the Government describes the 17,000 figure as an estimate derived from demographic and housing-stock trends rather than a precise measurement of today's housing shortage.
Advertised Prices Are Also Higher Than Actual Sale Prices
Another significant finding from the new Observatory concerns property prices.
The Government says asking prices published on property portals were, on average, around 38% higher than the actual average transaction price in the Balearics in 2025.
The comparison uses Observatory data based on actual transactions and information from the Balearic Tax Agency.
The Government therefore warned against treating advertised prices as equivalent to the prices at which properties are actually sold.
Ibiza and Formentera Show Large Asking-Price Differences
The distinction is particularly relevant in the Pitiusas.
The Observatory data indicate that advertised prices in Ibiza were more than 31% above the reference prices for completed transactions.
In Formentera, the difference was approximately 49%.
The figures compare different measurements of the market and should not be interpreted as saying that every property advertised on the islands is overpriced by those percentages.
Foreign Buyers Paid More on Average
The Observatory also highlights a substantial difference between the average prices paid by Spanish and foreign buyers across the Balearics.
In 2025, the average home purchased by a Spanish citizen cost €304,120.
For foreign buyers, the average was €548,662.
That was approximately 80% higher.
The overall average transaction price, combining both groups, was €396,165.
These are averages for completed purchases and do not mean that every foreign buyer paid more than every Spanish buyer.
The figures also do not establish that foreign purchases alone caused the difference in prices.
More Than 10,000 Affordable Homes in Planning
The Balearic Government says more than 10,000 affordable homes are currently being planned through its housing programmes.
The latest figure is 10,006 homes.
The programme includes protected housing and limited-price housing, with eligibility rules requiring at least five years of residence in the Balearic Islands for the measures described by the Government.
The Government says the programme is intended to increase the supply of homes at prices accessible to residents.
Construction Is Also Picking Up
The Observatory's figures show signs of renewed residential construction.
In 2025, 2,452 apartments in multi-family buildings were included in approved building projects.
That was an 18.62% increase compared with 2024 and the highest number recorded since 2008.
The Government says the increase reflects, among other factors, measures introduced from 2024 aimed at increasing housing supply and speeding up planning and licensing processes.
Tourist Rentals Represent 4.2% of the Housing Stock
The Observatory also provides data on tourist accommodation.
There were 26,143 licensed tourist rental homes in the Balearics in 2025.
That represented 4.2% of the total housing stock.
The number increased substantially between 2015 and 2022, when licensed tourist homes rose from 11,403 to 26,492.
Between 2022 and 2025, however, the number fell by 349 homes, or approximately 1.3%.
The figures concern licensed tourist rental properties and therefore do not measure unlicensed tourist accommodation.
Nearly Half of Public Housing Applicants Want to Buy
Another indicator from the Observatory concerns demand for protected housing.
According to the data, 48.7% of people registered as applicants for protected housing selected purchase as an option.
Of that total, 22.8% chose purchase exclusively, while 25.9% selected rent with an option to buy.
Another 36.8% selected rental housing, while 14.5% expressed no preference.
What the Figures Mean for Ibiza
For Ibiza, the new Observatory provides several indicators showing why housing has become such a prominent issue.
The island experienced strong population growth over the 25-year period, while its housing stock grew considerably more slowly.
The resulting 43.2% demographic-housing gap is among the highest in the Balearics.
At the same time, advertised property prices are substantially higher than completed transaction prices, and the average purchase price paid by foreign buyers across the Balearics was considerably higher than that paid by Spanish buyers.
None of these individual figures provides a complete explanation for Ibiza's housing situation, but together they illustrate the pressures facing the residential market.
A New Data Tool for the Islands
The Housing Observatory has been created to provide a central source of housing indicators for the Balearics.
It currently contains more than 20 indicators drawn from official sources, including the Balearic Statistics Institute and tax data.
The Government says the aim is to provide a more consistent picture of the housing market and to improve the basis for future housing policy.
For Ibiza and Formentera, the Observatory's first set of figures places the islands among the parts of the Balearics where the gap between population growth and housing-stock growth has been particularly pronounced.
But the Government's own warning remains important: the estimated 17,000-home deficit is a demographic calculation, not a precise count of homes currently missing from the market.