Sant Antoni de Portmany, on the west coast of Ibiza, is caught between two contrasting tourism models. The municipality, home to just over 29,000 people, is seeking to reduce its association with alcohol-fuelled holidays while attracting a more affluent clientele. For many residents, however, the most pressing issue is the cost of housing.
The municipality’s strategy includes renovating its hotel stock, diversifying its tourism offer and promoting the area’s landscapes, culture and gastronomy. Mayor Marcos Serra has highlighted the opening of five-star hotels, with three already operating and two more under development, as well as the growing importance of four-star accommodation.
The changes are also visible in the town centre. West End, a pedestrian area known for its nightlife and pubs, received a large mural by artist Okuda San Miguel in 2025. The local government said the project was intended to make the area more welcoming and encourage coexistence between residents and visitors. That same year, the council offered assistance to businesses in the Special Acoustic Protection Zone to encourage the conversion of nightlife venues into shops and restaurants. A new boulevard was also opened to create a larger pedestrian area in the centre.
The hotel sector has undergone a similar transformation. One example is the five-star OKU resort, which opened before the 2021 summer season with almost 190 rooms and a large swimming pool. The increase in premium accommodation is partly linked to regional measures introduced in 2020 to encourage hotel modernisation. Across Ibiza, 38% of hotel supply is rated above four stars, according to the information provided.
Whether these measures are actually reducing party tourism remains disputed. What is clear is that Sant Antoni is facing a sharp rise in housing costs. Data from Pisos.com places the municipality among Spain’s 25 most expensive locations, with an average purchase price of 7,110 euros per square metre.
Rental returns are also attractive to property owners. The profitability of standard residential rentals is around 5.63% in Sant Antoni, rising to 7.57% for newly signed contracts. The average monthly rent is about 1,009 euros, while recently agreed leases reach approximately 1,317 euros.
The sales market has also continued to rise. Fotocasa recorded a year-on-year increase of 16.9% in October, with prices climbing from 6,465 to 7,470 euros per square metre. Idealista reported a smaller increase but pointed to the same upward trend.
The pressure affects not only permanent residents but also workers who support the local tourism industry. The housing shortage has forced some employees, including people working in restaurants and hotels, to live in caravan parks. For Sant Antoni, the challenge is therefore not limited to changing its tourist image: it must also manage the residential consequences of becoming a more desirable and expensive destination.
Sources: Xataka.