“The Housing Being Built in Ibiza Is Not What the Island Needs”: Experts Call for a Change in the Island’s Housing Strategy

November 13, 2026

Ibiza's housing crisis is not simply a question of building more homes. It is also about what is being built, where it is being developed and whether the resulting properties will be affordable and accessible to the people who live and work on the island.

That was one of the central messages of a housing conference organised by the Consell Insular d'Eivissa on Thursday, 12 November, where architects, economists, property developers and political representatives examined the balance between public regulation and the property market.

The discussion brought together three different perspectives on one of Ibiza's most pressing challenges. Architects called for a more realistic approach to urban planning and greater development of multi-family housing. Economists argued that the island needs to increase residential supply while addressing the financial and administrative barriers that make housing so expensive. The property development sector, meanwhile, defended limited-price housing as an important part of the solution, while highlighting the difficulties of making these projects financially viable.

The message from Lluís Oliva, president of the Official College of Architects of the Balearic Islands (COAIB), was particularly direct: Ibiza has land available for residential development, but it is not being used effectively, and the type of housing currently being constructed does not correspond to the island's greatest needs.

Ibiza Has a Housing Deficit of 43% Over 25 Years

Presenting figures at the conference, Oliva described a substantial imbalance between population growth and residential construction.

According to his calculations, Ibiza has accumulated a housing deficit of 43% over the past 25 years. One of the consequences is the extraordinary cost of purchasing a home, with prices increasingly beyond the reach of many residents.

The average flat on the island costs €538,479, according to the figures he presented, while the average house reaches approximately €2.55 million.

Oliva also highlighted the influence of international purchasing power on the local property market. According to the data he presented, foreign buyers pay approximately 65% more than domestic buyers.

This difference adds another dimension to the affordability problem. Local residents and workers are competing in a market where some buyers have considerably greater purchasing power, contributing to the difficulty of accessing homes at prices compatible with local incomes.

The architect argued that the shortage is particularly evident in multi-family housing, which he identified as one of the island's most important residential needs.

His figures showed that construction of this type of housing remains extremely limited. Sant Antoni was the only municipality presenting slightly more notable figures, while Sant Josep had just two multi-family projects approved in the data he discussed.

For an island with high housing costs and limited available land, the lack of apartment-style residential development is an important part of the wider problem.

Architects Call for More Intensive Use of Urban Land

One of Oliva's main proposals was to make better use of existing urban areas and reconsider how land around established settlements can be developed.

He pointed specifically to transitional areas, known in Spanish as áreas de transición, which can provide opportunities to expand residential development around existing urban centres.

In Ibiza Town, he identified three areas with potential:

  • Sa Joveria, with approximately 15 hectares.

  • Sa Punta, with approximately five hectares.

  • Can Serres, with approximately 3.2 hectares.

However, the situation differs considerably across the island's municipalities. Oliva said Sant Josep and Sant Antoni do not have these areas, Santa Eulària has only some, and Sant Joan is excluded because of its population characteristics.

He criticised the application of regional measures without sufficiently considering the particular circumstances of each municipality and the island as a whole.

Oliva also called for greater urban density where appropriate, arguing that the island needs to make better use of land that is already urbanised rather than relying exclusively on new development areas.

He made an important distinction between legalising existing properties and actually increasing the supply of homes. In his words, legalisation does not automatically mean producing new housing.

His broader argument was that planning policy must respond to the real residential needs of Ibiza, particularly the demand for multi-family homes.

Five Priorities Proposed by the Architects' Association

To address the situation, Oliva outlined five main areas of action.

A long-term territorial agreement

He called for a 50-year territorial pact that would be cross-party and independent of short-term political considerations. The objective would be to establish a consistent long-term framework for planning and residential development.

More intensive urban planning

Existing urban areas should be used more effectively, with appropriate increases in residential density and a greater focus on the types of housing the island needs.

Real incentives

Oliva argued that the sector needs meaningful incentives to encourage the development of homes that respond to local demand.

Mobilising vacant properties

The existing housing stock should be used more effectively, including finding ways to bring empty properties back into residential use.

Direct public investment

He also called for greater direct investment by public administrations to help address the shortage of affordable housing.

Together, these proposals reflect the architects' view that Ibiza's housing crisis requires more than isolated construction projects. It needs coordinated planning, a long-term territorial strategy and measures that make the development of appropriate housing possible.

Concerns Over the Viability of Limited-Price Housing

Oliva also questioned whether limited-price housing, known as vivienda de precio limitado (VPL), is economically viable under the current conditions.

The system is intended to create homes with a maximum sale price established by the administration, helping to make properties more affordable than those sold on the open market.

However, the architect highlighted a considerable difference between construction costs and the maximum permitted sale price.

According to the figures he presented, construction costs are approximately €2,000 per square metre, while the maximum sale price is €2,796 per square metre.

That leaves a difference of around €796 per square metre. From this amount, developers must still cover the cost of land, licences, professional fees and other expenses.

Oliva questioned whether a private developer could realistically undertake such a project without incurring losses.

His criticism was not directed at the objective of limited-price housing itself, but at the financial conditions under which it is currently expected to be delivered.

The argument highlights a central difficulty in Ibiza's housing policy: creating affordable homes requires controlling the final price, but the cost of land, construction and administration can make those projects unattractive or financially unworkable for developers.

Consell President Says Ibiza Needs 9,000 More Homes

The conference was opened by Consell d'Eivissa president Vicent Marí, who highlighted the scale of the housing shortage across the Balearic Islands and its consequences for residents.

Marí said the population of the Balearic Islands had increased by 80% over 25 years and that the archipelago faced a shortage of approximately 17,000 homes, with around 9,000 of those needed in Ibiza.

He warned that demographic growth was placing pressure on essential infrastructure, healthcare and education, while making it increasingly difficult for young people to establish independent lives on the island.

The housing shortage also affects the ability to attract and retain professionals in essential sectors, including healthcare and education.

Marí argued that increasing construction alone would not be sufficient. New housing developments should primarily benefit people who have established their lives in Ibiza, pointing to the minimum five-year residency requirement included in Balearic housing legislation.

He also defended a more active role for public administrations, while acknowledging that the private sector must be part of the solution.

The president's position was that new housing supply needs to respond to the needs of the resident population rather than simply increasing the number of properties available for purchase.

Govern Conseller Raises Questions Over Restrictions on Second Homes

José Luis Mateo, the Balearic Government's Minister for Housing, Territory and Mobility, also took part in the conference.

Among the subjects raised was the possibility of restricting purchases of second homes, an issue that has generated considerable debate in the Balearic Islands.

Mateo warned that any restriction would need to be considered carefully, particularly in relation to European Union law and the principle of equal treatment.

He argued that if restrictions were introduced, they would have to apply equally to the population rather than targeting specific nationalities.

His comments highlighted the legal and political complexity of measures intended to limit external demand in a property market where international buyers play a significant role.

The debate reflects the challenge facing administrations attempting to protect residential access for local populations while respecting the legal framework governing property ownership and the European single market.

Economist Fernando Pinto: A Flat Costs 14.5 Years of Salary

Economist Fernando Pinto, a professor of Applied Economics at Rey Juan Carlos University and co-author of the book Un país sin casas, presented another perspective on the affordability crisis.

He calculated that purchasing an average flat in Ibiza represents the equivalent of 14.5 years of salary.

He described the situation on the island as a particularly extreme example of housing scarcity, arguing that even relatively high incomes are insufficient to keep pace with property prices.

According to Pinto, the problem affects the whole island rather than being concentrated in a handful of neighbourhoods or municipalities.

He also pointed to Ibiza's ability to attract people from outside the island as an additional source of pressure. According to the figures he cited, 27.8% of Ibiza's residents have foreign nationality.

Pinto argued that the relationship between wages and housing prices must be considered alongside the shortage of homes. He said that income levels and productivity have not developed sufficiently to keep pace with the cost of living and property.

He also challenged the idea that market prices alone explain the problem.

In his view, public administration contributes to the final cost of new housing through taxation and other charges. He estimated that one in every four euros in the price of new housing corresponds to fiscal costs.

He also referred to Spain's wider housing shortage, estimating a national deficit of 750,000 homes, which he believes could reach one million by 2028.

However, he stressed that the same measures cannot simply be applied everywhere. Ibiza has specific geographical, demographic and economic conditions that require a tailored response.

Six Measures Proposed to Address Ibiza's Housing Crisis

Pinto presented six measures that he believes could help improve access to housing on the island.

1. Build where the city already exists

He called for greater use of already urbanised land, making better use of existing settlements rather than relying solely on the expansion of urban areas.

2. Return properties to residential use

Homes that are not currently being used as permanent residences should be encouraged back into the residential market.

3. Provide greater security for landlords

Pinto argued that property owners need sufficient guarantees and legal certainty to encourage them to offer homes for rent.

4. Reserve housing for essential workers

He highlighted the importance of ensuring that people working in essential services can find accommodation on the island. This is particularly relevant to healthcare, education and other services on which the resident population depends.

5. Adapt taxation to Ibiza's circumstances

He called for a fiscal approach that recognises the specific characteristics of the island and the effect that taxation has on the cost of new residential development.

6. Make limited-price housing economically viable

He argued that affordable housing schemes must be financially sustainable if they are to attract developers and produce homes at the scale required.

Pinto also called for a national housing pact, while stressing that restrictions should not simply distribute an existing shortage more evenly. The ultimate objective, in his view, must be to eliminate the shortage itself.

Property Developers Defend Limited-Price Housing

Representing the property development sector, Alejandra Marqués, vice-president of communications at the Balearic Association of Property Developers (PROINBA), defended limited-price housing as a way to provide more affordable homes without consuming additional land.

However, she acknowledged that progress towards the 17,000 homes considered necessary across the Balearic Islands has been extremely slow.

Marqués highlighted the long timescales involved in residential development, explaining that at least six years can pass between the granting of a building licence and the delivery of completed homes.

She also pointed to the increase in construction costs during the period between obtaining a licence and actually beginning the work, which can take approximately two years.

The island's geographical position creates another disadvantage. According to Marqués, construction in the Balearic Islands is around 30% more expensive than on mainland Spain, while salaries are not 30% higher.

She also called for more consistent application of planning and development regulations across the municipalities, arguing that differences in how rules are interpreted can create uncertainty and slow down projects.

Her contribution reflected the developers' position that limited-price housing can help address affordability, but only if the financial and administrative conditions make construction viable.

Finding a Balance Between Regulation and the Property Market

The conference, titled Vivienda entre regulación y mercado: ¿qué equilibrio necesitamos?, formed part of the Consell d'Eivissa's wider series Eivissa: vivienda, territorio y futuro.

Its purpose was to examine the housing crisis from different professional and institutional perspectives, bringing together the public sector, architects, economists and property developers.

Although the participants approached the problem from different angles, several common themes emerged.

There was broad recognition that Ibiza needs more homes, that the current supply is insufficient and that the housing shortage is affecting the ability of residents and essential workers to remain on the island.

There was also agreement that simply increasing construction will not automatically solve the problem. The type of housing, the location of new developments, the financial viability of affordable schemes and the ability to return existing properties to residential use are all important considerations.

The disagreement lies largely in how these objectives should be achieved, the role of public intervention and the extent to which the private market can deliver homes at prices residents can afford.

Ibiza Needs Homes That Respond to the Reality of Island Life

The conference reinforced an increasingly important point in the debate over Ibiza's future: the island needs housing that responds to the people who actually live and work here.

The shortage is not only affecting young people trying to leave the family home. It also creates difficulties for businesses attempting to recruit staff, public services trying to attract professionals and families seeking to establish long-term roots on the island.

The figures presented by the architects, economists and public representatives show different aspects of the same challenge: a mismatch between population, housing supply, property prices and the needs of the local workforce.

For the architects, the priority is to build the right type of housing and make better use of urban land. For the economist, the answer requires a combination of increased supply, fiscal reform, greater rental security and measures for essential workers. For the property development sector, affordable housing must also be financially viable if projects are to move beyond the planning stage.

The discussion leaves Ibiza with a difficult but essential question: how can the island increase the availability of homes without losing sight of its limited territory, the needs of its residents and the economic realities of construction?

The challenge is no longer simply to build more. It is to ensure that what gets built is housing that Ibiza actually needs.

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