After a relative slowdown in 2023 and 2024 due to rising interest rates, demand for mortgages in Ibiza and Formentera has surged this year, driven by improved financial conditions and more favourable economic expectations. According to data published by Ibestat in the middle of last week, up to October —the latest month for which data are available— home mortgages granted in the Pitiusas amounted to a total value of €572.94 million. This represents an increase of €190.6 million compared to the same period last year, equivalent to growth of 49.84%.
This rise is linked to another significant increase: the number of mortgages taken out on flats and houses. This comes at a time when many new developments have been activated and demand is growing both for first homes —which, despite their high prices, are still seen as a cheaper option than paying today’s astronomical rents— and for housing aimed at workers.
In the latter case, companies are increasingly stepping in to secure accommodation for their staff in order to retain employees. Many employers are willing to pay substantial sums to provide housing, as workers are becoming less willing to relocate to the islands only to live in precarious conditions or pay excessive prices for a single room. Up to October, a total of 1,316 mortgage operations were registered in Ibiza and Formentera, 449 more than a year earlier, representing an increase of 51.78%.
Levels not seen since 2007
To find higher figures, both in terms of total value and number of transactions, one has to go back to 2007, at the height of the real estate boom, when mortgages reached €733 million and the number of transactions climbed to 3,892.
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