In Ibiza, the discrepancy between theoretical rental prices, as suggested by the Spanish Ministry of Housing‘s State Housing Rental Price Reference System, and the actual market rates is stark. A one-bedroom apartment on Bisbe Azara de Vila street, theoretically priced at around 715 euros per month, commands a rent of 1,836 euros in the low season, skyrocketing to 4,995 euros during August. Similarly, a three-bedroom property on Pere Matutes Noguera Avenue, estimated at about 1,045 euros, is actually rented out for 3,700 euros per month. Nine rental advertisements across Fotocasa and Idealista reveals that rents are more than double or even triple the government’s reference index. Even the least expensive rental listed is 95% above the recommended price, with the greatest discrepancy reaching 254%. This situation renders housing affordability a significant challenge for locals, including families and individuals with average incomes, highlighting a market in stark contrast to the government’s affordability benchmarks. Despite the Housing Law of 2023, which suggests applying the reference index to large-scale landlords, the Balearic Islands, led by President Marga Prohens, have no plans to implement such measures, deeming them too interventionist.
For the full article, please visit Diario de Ibiza website here.