San Sebastián had been the city with the highest property prices in Spain for the last 12 years. Although that has now changed as Ibiza Town, situated on the Balearic Island of Ibiza, has now overtaken taken San Sebastián, with prices reaching €3,709 per square meter in this second quarter of the year, based to the latest statistics from the Public Works Ministry.
Clearly, tourism is the main factor driving up the cost of the properties which is supported by the views of estate agents on the Island.
The rise in prices of Ibiza Town’s has been unexpected. During the property boom in the early 2000s, prices in Ibiza remained relatively reasonable but that’s now changed as Ibiza Town leaps ahead with the title of the highest property prices in Spain.
In the last 5 years, property prices have risen a whopping 56.5% in Ibiza Town.
Elena López, a local councillor for the Socialist Party said ” a combination of a number of factors, have lead to the spike in prices, The city covers 11 square kilometres,10 times smaller than Barcelona and 60 times smaller than Madrid. Forty percent of that is rural land and the rest is consolidated urban land. It’s practically all taken.