Ibiza’s ‘Rich-Friendly’ Culture Under Attack

Ibiza, once known for its vibrant culture and natural beauty, is now undergoing a transformation that is altering its social fabric. The island is becoming increasingly “rich-friendly,” a shift that has led to the displacement of its long-standing residents. Despite numerous legislative efforts over the years, the housing crisis in Ibiza persists, with a severe shortage of affordable housing and skyrocketing rental and property prices. In response to the lack of affordable options, luxury housing construction has surged, with properties often fetching prices exceeding one million euros.

Luxury housing construction is booming across the island. Properties, often boasting exquisite views and lavish amenities, have become highly sought-after by the wealthy elite and prominent developers are actively competing for a share of this lucrative market. Currently, there are approximately 40 new housing projects advertised on the most popular real estate websites in Ibiza, and many of them are priced in the 1-3 million euro bracket for a two to three-bedroom residence. This surge in luxury housing has resulted in economic segregation, as many residents and workers are being priced out of the market.

Surprisingly, none of the island’s municipalities have allocated land for the construction of protected-price housing (Vivienda de Precio Limitado or VPL), despite this being an option under the regional housing decree. The lack of available public land for such developments has left the responsibility squarely in the hands of private developers, exacerbating the housing crisis.

Solving Ibiza’s housing crisis is a well overdue issue, comment local planning authorities. "Municipalities should allocate land for VPL housing and developers need to start offering affordable options for a diverse, sustainable community."