Knight Frank Global House Price Index – Q3 2025
The latest Knight Frank Global House Price Index (Q3 2025) has just been released, tracking residential price movements across 55 countries worldwide. The report points to a modest acceleration in global house price growth, supported by improving financial conditions and renewed buyer confidence.
As Ibiza’s official Knight Frank Associate, we are pleased to share the key insights — and what they mean for our local market.
Global Highlights
Annual price growth rose to 2.4% in Q3 2025, up from 2.2% in Q2.
Central banks delivered several net interest rate cuts, helping to stimulate demand.
In real terms (after inflation), price growth remains slightly negative at –0.1% year-on-year, highlighting continued affordability pressures in some markets.
According to Knight Frank’s Global Head of Research, the shift toward easing monetary policy is beginning to support housing markets, although sustained recovery will depend on further inflation moderation into 2026.
Ibiza & The Balearics: A Resilient Lifestyle Market
While the index measures mainstream residential markets globally, Ibiza continues to operate within its own distinctive framework — shaped by limited supply, strong international demand, and its enduring lifestyle appeal.
Key local dynamics:
- Stable international demand, particularly from Northern Europe
- Restricted land availability, supporting long-term value
- Strong interest in prime areas such as San Jose, Santa Gertrudis, the north of the island and select countryside and coastal locations like Santa Eulalia del Río
- Continued demand for high-quality, turnkey properties and traditional fincas with charm in the countryside
Ibiza’s market remains fundamentally supply-constrained, which provides resilience even during periods of moderate global growth.
What This Means for You
For Buyers:
Easing financial conditions globally may present opportunities, particularly before any renewed upward pricing momentum takes hold in lifestyle destinations like Ibiza.
For Sellers:
Well-positioned and realistically priced properties continue to attract serious, qualified buyers. In markets with limited supply, quality remains the key differentiator.
At Villa Contact – Ibiza, we combine local heritage (since 1983) with global reach through our partnership with Knight Frank. If you would like to discuss how current market conditions may affect your buying or selling plans, we would be delighted to advise you personally.