A little girl’s pink-and-blue bike sits amidst the crude wooden shelters in a slum area, located far from where vacationers enjoy the resorts of Ibiza.
As a Ferrari speeds past, everyday life continues seamlessly for both tourists and residents, yet within this campground at the outskirts of Ibiza Town, nothing but sorrow prevails.
Canvas tents and hastily constructed wooden shacks blanket the whole area. This is merely one of numerous encampments that have emerged across the island over the past few years due to the escalating housing crisis in Ibiza.
Still, on this very island renowned for wild parties and extravagant nightclubs, you can find luxurious multimillion-pound villas. A short distance from these humble settlements, visitors enjoy meals at seaside taverns, indulging in cocktails and dance sessions.
Formerly a haven for hippies, the White Isle has transformed into a place marked by stark differences between extravagant wealth and severe poverty.
A surge in tourism, primarily driven by British vacationers, has placed immense strain on the local real estate market. As a result, numerous individuals now find themselves struggling to live outside the main city area and various sections of the Spanish island.
Luxurious mansions versus slum areas
On the opposite end of the spectrum, a nine-bedroom home is presently up for sale.
for €10m
($11.3 million) and the owners of another luxurious villa are requesting €22 million ($18.7 million).
For individuals residing in caravans, tents, and shacks, these grand estates stand as distant dreams compared to their everyday lives.
Frustration about disparities in the real estate market is anticipated to propel thousands into taking to the streets of Ibiza this Sunday. This protest is part of continent-wide demonstrations opposing the “commercialization” of urban areas and vacation destinations across Europe.
Demonstrations will take place throughout Spain, France, Portugal, and Italy, marking the initial synchronized protests across Europe aimed at addressing the impacts of large-scale tourism.
Mohammed Salem, a 26-year-old man from Algeria who has resided in Spain for half a decade, stands amidst the temporary shelters within the Sa Rovira slum area on the outskirts of Ibiza Town.
One of the shacks has a sign promoting “happy hour” beverages, possibly aiming to bring a touch of joy to this desolate spot.
“It’s extremely challenging. Finding employment is tough, yet once you secure a job, you can’t manage to pay for housing. This is why I’m here,” he explains.
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I’m considering moving to Madrid. The tourism industry drives up all the costs around here.
In yet another slum located roughly half a mile distant, the dwellings are blanketed with tarps and refuse litters the ground. Nonetheless,
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Many of those I visited were at work in hotels or on construction sites.
A sizable black Range Rover parked in the driveway indicates that this is home to working-class individuals.
Illegal rentals are booming
The severe housing shortage, especially pronounced in certain vacation spots like the Balearic Islands, Madrid, or Barcelona, has resulted in increasing hostility towards short-term rental properties.
In Ibiza, numerous tales tell of locals renting their houses to visitors as a means to earn extra income and relocating to caravan parks instead.
Periodico de Ibiza
A local newspaper highlighted this week how officials discovered a €120,000 yacht situated amongst the caravans, demonstrating that a prosperous resident of the island chose to capitalize on the tourism surge by leasing their property rather than residing in their own home.
Ana Cuesta Meyer, aged 35, who works as a yoga instructor, vacated the rented room at a communal residence in San Antonio after the property owner increased the monthly cost from €600 to €900.
“The rent became too much and I liked caravans when I was a kid. So, I got a caravan and I live here now. It has become the only thing people can do,” she said.
Tourism contributes to increasing rental costs; however, individuals often lease their properties to vacationers rather than locals. This situation involves much speculation. If put in the same position, I would likely make the same choice.
The local government of Ibiza is contemplating imposing penalties as high as €10,000 (£8,538) on caravan owners who choose to park in unauthorized zones. This move aims to prevent these temporary settlements from turning into long-term residences.
Ms. Meyer stated that this approach would adversely affect individuals like herself without addressing the root issue of insufficient housing supply.
The increase in caravan parks and shantytowns highlights how split this vacation haven has become.
‘Nobody wants to live like this’
Francesca, preferring not to share her complete name, resides in one of the trailer parks on the edge of Ibiza Town.
“No one wants to live like this but we are forced to because there is not enough housing. It all goes go the tourists. I work like a lot of people and they [the council] want to force us out,” she said.
“Ibiza is an island of extremes and sharp contrasts in a small space, which is very shocking,” said Cristina Martin Vega, editor of
Diario de Ibiza,
another local newspaper.
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“The lack of affordable housing for residents and holiday workers has led to an unstoppable proliferation of substandard housing settlements.”
She added that the housing crisis has worsened in recent years because of speculation in the property market related to the tourism industry.
Many residents have left the island because rents have soared, or properties have become too scarce. Stories abound of teachers, and other workers, commuting every day by air from neighbouring Mallorca. Residents of the Balearic Islands receive discounts to fly between the islands and the Spanish mainland.
Teachers flying in to work
“One educator was forced to go on medical leave due to the strain caused by her daily commute. Although she couldn’t afford to reside in Ibiza, she had to travel from Mallorca each day for work. Ultimately, this led her to decide to quit her position,” stated Maria Cardona, a representative of the advocacy organization Canviem El Rumb (Let’s Alter Our Path).
Last year, 3.6 million tourists visited Ibiza and Formentera. Britons were the largest group by nationality, followed by the French. However, the number of British holidaymakers who went to Ibiza in 2024 fell by 7.6 per cent, to 822,000 compared with the year before.
Despite the slight drop, tourism still dwarfs the islands’ combined population of around 160,000, placing immense strain on local infrastructure, housing and essential services – particularly in Ibiza Town, the administrative and economic heart of the island.
The Spanish government says the rise of Airbnb and other short-term holiday companies, and soaring rents and housing costs, are related.
“Obviously, there is a correlation between these two facts,” Spain’s consumer rights minister Pablo Bustinduy told Associated Press last week.
“It’s not the only factor affecting it, there are many others, but it is one of the elements that is contributing.”
A recent Bank of Spain report found that the country has a shortfall of 450,000 homes. In tourist hotspots like the Balearic Islands and the Canary Islands, half the housing stock is tourist accommodation or properties owned by non-residents, the report said.
The Spanish government last month ordered Airbnb to remove almost 66,000 properties from its site, claiming they contravene the law. Airbnb is to appeal and said no holiday rentals will be removed in the meantime.
Last year, Spain welcomed 94 million tourists, with approximately 18 million coming from Britain. It is anticipated that this year, the country will attract roughly 100 million travelers, potentially dethroning France as the world’s top tourist destination.
Mark Stucklin, a UK-based real estate specialist who edits
Spanish Property Insight,
An independent website covering the real estate industry stated, “Tourism consumes available lodging space, thus increasing both demand and supply. Consequently, these factors dictate pricing.”
Nonetheless, tourism generates employment and economic prosperity for the local area, thus it involves a compromise. Each region and municipality must strive to strike the appropriate equilibrium.
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