Through the mid-2000’s Andorra’s property market was booming, with a claimed 50% price jump over 5 years.

Then the GFC hit, with average prices dropping 25%.

In this article we’ll run you through some key considerations before renting or buying in Andorra’s property market and where the market sits in 2024, including prices per square metre.

Please note this is the unofficial, unbiased findings of market research. Andorra Guides are not a real estate agent or involved with the government.

Consider Liquidity

If you’ve wanted to sell property in a major, developed English speaking country over the last few years, it wasn’t uncommon to list it on Friday and sell it by Monday.

Real estate in Andorra is a little different. Unless you’re willing to take a big hit, property can take a long time to sell, especially during a downturn.

So while average property prices in Andorra may have dropped by 25%, it’s not hard to imagine a scenario where a few sellers of high value chalets, townhouses and apartments took a massive haircut.

Tip: If you’re looking at property that is on the market here, check it out on Google Street View before making an offer. There’s a good chance it’s been on the market for at least 1-2 years – sometimes longer. Check out the example below (complete with for sale sign), the image was taken in October 2014!

Using Google Street View to research Andorran properties

Keep in mind however, due to ridiculously low interest rates in Europe, these sellers may not even care if the house hasn’t sold after years on the market.

There are a lot of other factors that can affect the liquidity of a property in Andorra, as covered in this real estate guide. A good example of one however, is sunlight – you may not value sunlight, which is a great opportunity to grab a cheap place, but when it comes time to sell don’t expect it to be quick!

Repositioning the Country

Andorra has changed a lot over the past few years. Professional athletes, entrepreneurs and retirees from all over the world are taking advantage of Andorra’s tax system, affordable cost of living and great quality of life.

Some Andorrans say the country is reluctant to this change, but simultaneously knows it needs to happen.

Getting residency in Andorra isn’t necessarily easy, but it’s not particularly hard either. There are 3 main options;

  1. you need to be a professional athlete or a public figure of some sort,
  2. be willing to invest €600,000 in the country (most commonly invested in property), or
  3. form a company in Andorra, and operate it day-to-day which requires you to pay into the social security and healthcare system, and so on.

The take away from this is people relocating to Andorra have either a healthy income or asset base. This means they come to the country and spend money, support the economy, and yep, drive up the property prices.

Property Is in Demand

In 2016 there weren’t a lot of rental options on the Andorran property market. Compared to today, there was a huge amount of choice. Residential rental prices increased around 15% in 2017 and during 2018, at least another 15%.

Mid-way through 2017 there was plenty of “old stock” on the market. Since then, a lot of these bargains have sold off. Inevitably, this is due to the increased demand both in buyers and renters.

From 2019 onwards, a lot of stock came onto the market, at prices that felt high at the time. One could assume these are owners who wanted to sell years ago, but weren’t willing to take the haircut. Once this round of old stock was sold off, the impact was huge.

Throughout Covid, demand for the country skyrocketed. Residency applications are at all time highs, and demand for property went with that. While rents were somewhat protected during this time, many leases have now expired, and for some, rents have doubled or even tripled.

This encouraged many new constructions. Vacant apartment blocks which were seemingly abandoned around 2010 have finally seen progress, and many are nearing completion.

Assuming the Eurozone stays economically healthy and Andorra’s immigration policy allows more people to come into the country, it’s not hard to expect that demand will balance out the new stock in the market, so prices should remain stable.

Residential street in Sispony, La Massana, Andorra
Increased property demand=increased developments? How long will lush fields in residential areas like this go undeveloped?

Andorra’s Property Prices

The following is from our own market research. These are the numbers we use to decide if a property is a good deal or overvalued, but please do your own due diligence.

Below are the median advertised property prices (per square meter) at time of writing:

  • Chalets: €4,368.12 m²
  • Duplex & Townhouses: €4,821.29 m²
  • Apartments: €4,557.41 m²
  • Land: €824.48 m²

It can appear that chalets are the best value deals, but keep in mind garages and laundries are often included in the square meterage of detached houses. Though many are tiled, with the size of some garages in Andorra, it can see sellers trying to justify very high prices. Expect to pay €1.5 million or more for an average house in our little country.

What you don’t see here are the wide ranges. There are some stunning properties available at €4,000m² or more, and you can be sure if you’re buying somewhere for €2,000m² or less it will need some work.

Opportunity Pricing

As a general rule, we consider the following Andorran property prices to be worthy of researching as a potential opportunity:

  • Chalets: €3,500 m² or less
  • Duplex & Townhouses: €3,500 m² or less
  • Apartments: €3,750 m² or less
  • Land: €750 m² or less

This doesn’t mean a property that falls under these prices is a good deal, there’s still a lot to consider on a case-by-case basis.

Private and Public Markets

Newcomers may not be aware that Andorra has a public and a private property market.

Some sellers choose not to advertise their property publicly, and in some cases the properties are so highly sought after there is no need.

For the longest time, there’s been a lot of “quiet money” in Andorra, undisclosed (historically) to Spanish and French governments. As Andorra becomes more open to the world, these property owners have been quietly selling their property and getting assets out of their name.

Without public sale records it’s not really possible to say what they are selling for, but of course few sellers are going to take a price that is significantly lower than fair market value.

A Summary of Andorra’s Property Market

Increased immigration and a healthy European economy bring increased demand both for rental properties and by buyers looking to live in Andorra. Combined with a current lack of supply, Andorra’s property market seems to only be trending upwards.

Have questions? I’d love to hear your thoughts. Please know you can contact me at any time.