Ibiza surpasses San Sebastián as the city with the most expensive apartments | Economy


The rise of Ibiza in the classification has been vertiginous. And, somehow, also unexpected. During the housing bubble of the beginning of the century, housing prices had behaved there reasonably. Among the municipalities with more than 25,000 inhabitants, which are broken down by official statistics, in the second quarter of 2008 Ibiza was ranked 45th. Locations like Cádiz, Getafe (Madrid) or El Prat de Llobregat (Barcelona) were ahead.

But the outbreak of the bubble And everything changed. Already in the second quarter of 2009, Ibiza was the 26th most expensive city in Spain. And, five years ago, he was in eighth position, only surpassed by San Sebastián (traditionally the most prohibitive, although punctually in 2007 he surpassed the capital), Madrid, Barcelona and some localities of the most affluent residential areas of the two major metropolises.

In the last five years, the value of the appraised house in Ibiza has grown by 56.5%. Only L'Hospitalet de Llobregat (Barcelona) exceeds that mark with an increase of 58%. But the Catalan town started from very low figures because in the years of the decline prices sank, while Ibiza fell less and began much earlier recovery.

In fact, of the six most expensive municipalities currently - by order: Ibiza, San Sebastián, Santa Eulària des Riu, Sant Cugat del Vallés, Barcelona and Madrid - only in Ibiza and Santa Eulària (also on the island) the floors are worth Now more than before the crisis. And not a little, but much more: 27% and 19%, respectively.

Ibiza beats San Sebastian as
the city with the most expensive floors



In the Balearic city, what happened looks like the perfect storm. "I think it is the combination of many factors," summarizes Elena López, councilor of the PSOE in the City of Ibiza who in the previous term was responsible for the Housing area and currently runs Urban Planning. “The city has 11 square kilometers (almost 10 times smaller than Barcelona and 60 times than Madrid): 40% is rustic land and the rest consolidated urban land. It is practically full, ”he explains.

Ibiza beats San Sebastian as
the city with the most expensive floors



To that is added insularity. "We have limited land and we do not have the option of moving to other nearby municipalities if we do not find the option we want," says Jeffrey Fernández de Bobadilla, delegate for Ibiza of the Official College of Real Estate Agents of the Balearic Islands. “The island is very small and there is a lot of demand and little supply,” agrees Sergio Carrasco, lawyer for the Ibiza platform, Affected by Rentals.

Although the Promotion statistics refers to appraisal values, tourist leases are indicated as an important cause of the price escalation by all the sources consulted. "If there are 50,000 registered, in August there are up to 400,000 people and there are 150,000 tourist places, where is the rest?”, Asks Aitor Morrás, current Councilor for Housing for United We. He himself replies: "In homes that are used tourism."

And although the classic crossing of political accusations about who has done less is not lacking, even José Vicente Marí, councilor of the opposition, agrees that “the tourism market has a lot of influence”. For the mayoral candidate for the PP in the last elections, there was “a positive process” that consisted of “getting out of the previous crisis with the renovation of the tourist infrastructure and adding the luxury”. But that "had a counterpart that is the price of the housing market."

Except for the need for more inspection to monitor illegal tourist accommodation (in Ibiza they are prohibited in all multi-family blocks), the solutions to adopt are those that find less consensus. Marí cites the paralysis of the General Urban Planning Plan since 2015 and believes that it is necessary to approve the new one as soon as possible “to put soil in promotion”.

In the current municipal corporation they disagree with that approach. The Councilor for Housing notes that the municipality has 23,715 homes according to the cadastre for 50,000 inhabitants. "Housing is there for a tube, but we suspect that too many are for tourist use and must be detected," he says. Its intention is to elaborate a “door to door” census because “the macro data is not worth it, you have to go to the microscale”.

Outside of politics, Fernández de Bobadilla claims to return to the professionalization of the sector, deregulated since 2000, to avoid speculation "that local people pay." And Carrasco goes to the origin: “It's not that it's difficult to buy, it's that it's impossible because wages have not grown at the same level as prices"

Tourist rentals are the most determining factor of the price in the islands

The concentration of tourist housing is the most determining factor when determining the price of houses in island markets. That is one of the conclusions reached by the first edition of the Tourism Housing Impact Observatory (OIVT), presented last Friday in Madrid. The main lesson of the study is that the proliferation of rentals for tourists in residential buildings is driving housing prices up, although there is a time when excessive concentration saturates the market.

However, the observation for the Balearic and Canary Islands as a whole (the study determines four zones of homogeneous behavior: Mediterranean coast, archipelagos, Madrid and Seville) is the opposite: as the volume of tourist rentals increases in one area, the price increases of the houses. "We understand that this saturation occurs from the initial point probably due to the high level of concentration of housing for tourist use that these markets present," said Iñigo Amiano, CEO of Krata, the appraiser responsible for the study.

Although the results must be taken with caution because it is a first edition, the analysis confirms an intuition (if the floors can be made profitable in tourism, the prices of an area go up) on which until now studies have hardly been carried out. For now, the authors do not venture the causes of saturation. Two hypotheses are that the excess of tourists will drive away neighbors who buy to live or that excessive competition discourages investors who buy for short-term rentals.

The OIVT has analyzed the evolution of the price of 20 million properties during a year (according to an estimate made by statistical methods) and has related it to the distribution of more than 342,000 tourist homes that are advertised on the AirBnB and HomeAway portals. For this, it took the census sections as a reference and divided them into four types: those that do not have tourist dwellings, those that have up to 1%, those that have between 1% and 7%, and those that have more than 7%. In the latter, except in Madrid, the price always grew less than in the previous tranche.

. (tagsToTranslate) ibiza (t) overcome (t) san sebastián (t) city (t) flat (t) expensive (t) second (t) quarter (t) year (t) price (t) meter (t) square (t) municipality (t) insular (t) rozar (t) 3,709 euros



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