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Wednesday, December 11, 2024

Pandemic lowers rental prices on Ibiza and Formentera for the first time since 2012

Despite the decline in rental prices, the Balearic Islands recorded the highest cumulative increase since 2015

After years of rising prices, rental prices fell in all the municipalities of the Pitiusas Islands with more than 10,000 inhabitants during 2020, with the arrival of covid. A generalised situation in the archipelago, which was the only autonomous community where prices were reduced, albiet minimally: the Balearic Islands experienced a reduction of 0.2% compared to the state increase of 0.9%. Even so, the islands recorded the highest accumulated increase since 2015.

The National Statistics Institute (INE) has published, for the first time, the Rental Housing Price Index (IPVA), and of the Pitiusas, Formentera recorded the largest drop in rental prices with -2.1%, followed by Ibiza (-1.5%), Sant Josep (-1.2%), Sant Antoni (-0.8%) and Santa Eulària (-0.7%).

As for the smaller Pitiusa, only 14 municipalities, of a total of 750 with more than 10,000 inhabitants, have experienced a greater drop in rental prices; most are in the Canary Islands, Adeje (-5.6%), Mogán or Yaiza (-4.1%), although there are also municipalities of the Balearic Islands, such as Alcúdia (-2.6%), Santa Margalida (-2.4%) and Son Servera (-2.2%).

Likewise, four territories of Andalusia have registered a drop in prices greater than that of Formentera: El Visor del Alcor, Villamartín, Arahal and Huétor Tájar.

For their part, Vila, Sant Josep, Sant Antoni and Santa Eulària are among the 50 municipalities in Spain where the price of rent has fallen the most in 2020.

Statistics published by the INE reflect that, since 2012 (the first year in which data began to be recorded in reference to rent), in 2020 is the first time that the Pitiusas have recorded a sharp drop, after eight years of increases, although there are exceptions.

For example, on Formentera rents fell in 2012 (-0.9%), 2013 (-1.6%) and 2019 (-0.1%), although the most notable decrease occurred in 2020 (-2.1%). In 2016 and 2018 prices rose by as much as 4.5% on the island.

As for the municipality of Vila, the year in which the pandemic occured was the only one in which prices fell. Since 2012, every year they have increased by an average of 2% until soaring above 4.6% in 2018. The same happened in Sant Josep, where after years of rises, in 2020 it recorded the biggest drop; previous years saw increases of 3.5%. Prices also fell for the first time in Santa Eulària, after years of notable rises, with increases of 3% in 2016 and 2017 and 4.4% in 2018.

Sant Antoni, with the exception of 2012 when it recorded a decrease of -1.2%, has even had increases in rental prices of up to 5.5%, as happened in 2018.

By type of property, although the data is global for all the islands, the drop during the first year of the pandemic was more significant in larger homes. Specifically, the reduction was 0.6% in those of more than 150 square meters and 0.4% in those of 120 to 150 meters.

For the full article, please visit Diario de Ibiza website here.

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