Andorran property market: 2025 trends and prices

The property market in Andorra in 2025: trends, prices and investment advice

The Andorran property market has experienced exceptional momentum since the end of the health crisis. With a price increase of 30 to 40% since 2020, demand structurally exceeding supply and a constant influx of new international residents, property in Andorra has established itself as one of the most attractive and resilient markets in Europe. This comprehensive guide presents the state of the market in 2025, parish by parish, with the key steps for a successful investment.

A market in full effervescence

Andorra is undergoing an unprecedented demographic and economic transformation. The Principality, with approximately 85,000 inhabitants over a surface area of just 468 km², attracts several thousand new residents each year. This demographic growth, combined with a geographically constrained territory (only 8% of the surface is buildable due to the mountainous terrain), creates natural tension in the property market.

Since 2020, property prices in Andorra have seen a spectacular increase of 30 to 40% depending on the parish and type of property. This appreciation is explained by several converging factors: the growing tax attractiveness of the Principality, the post-Covid awareness of the quality of life offered by a safe and preserved mountain environment, the development of remote working which allows professionals to settle in Andorra whilst working for foreign companies, and the progressive opening of the Andorran economy to foreign investors since 2012.

The seven parishes: overview and prices

Andorra is divided into seven parishes, each with its own character and positioning in the property market.

Andorra la Vella is the capital and economic centre of the Principality. It is the most urbanised parish, concentrating government offices, shops, banks and a large proportion of economic activity. Property prices here are among the highest: expect between 4,000 and 7,000 euros per square metre for a flat, with peaks above 8,000 euros for premium properties in the most sought-after areas. Demand is constant, driven by active residents and professionals wishing to be at the heart of activity.

Escaldes-Engordany, the parish bordering the capital, is renowned for its luxury offering and its Caldea thermal baths. This is where high-end property developments and prestigious residences are concentrated. Prices range from 4,500 to 8,000 euros per square metre, with exceptional properties exceeding 10,000 euros. Escaldes-Engordany attracts a wealthy and international clientele, drawn to comfort and proximity to luxury shops.

Encamp is a residential parish offering a good balance between accessibility and quality of life. Gateway to the Pas de la Casa ski resort via the Funicamp, Encamp appeals to families and winter sports enthusiasts. Prices range from 3,000 to 5,500 euros per square metre, making it a more affordable option than the capital whilst remaining very well connected.

La Massana is the largest parish in Andorra and home to the Vallnord-Pal Arinsal ski resort. The natural setting is exceptional, with preserved valleys and panoramic views. Prices range from 3,000 to 5,000 euros per square metre for flats, and individual chalets can reach significantly higher prices. La Massana attracts nature lovers and families seeking a quieter environment.

Ordino is considered the most exclusive and best-preserved parish in Andorra. Its exceptional natural heritage, low building density and village atmosphere make it a highly sought-after place of residence for affluent individuals seeking tranquillity. Prices are high, between 4,000 and 7,000 euros per square metre, reflecting the scarcity of land and the exclusivity of the setting. Ordino is often the choice of HNWIs with passive residence.

Sant Julia de Loria is the southernmost parish, on the Spanish border. It offers quick access to Spain and benefits from generous sunshine. Prices are more accessible, between 2,500 and 4,500 euros per square metre, making it an attractive option for first-time buyers and investors seeking good value for money.

Canillo is the northernmost and largest parish by surface area. It is home to the Grandvalira ski resort (Canillo-Soldeu-El Tarter sector), one of the largest in southern Europe. Prices vary considerably depending on proximity to the slopes: from 3,000 euros per square metre in residential areas to over 6,000 euros for ski-in/ski-out properties. Canillo is the preferred choice of winter sports enthusiasts and seasonal rental investors.

Post-Covid trends: a structural increase

The 30 to 40% increase observed since 2020 is not a passing speculative phenomenon. Several structural factors support this trend.

Firstly, the supply of new housing remains insufficient. Geographical constraints (mountainous terrain, protected areas) and regulatory constraints (strict planning permission, height limitations) hinder the construction of new developments. The stock of available housing is therefore structurally limited.

Secondly, demand continues to grow. Andorra attracts a constant flow of new residents: digital entrepreneurs, professional sportspeople, European investors, affluent retirees, binational Franco-Spanish families. The Principality's demographic growth is among the most dynamic in Europe.

Thirdly, prices remain competitive by European standards. Despite the recent increase, prices per square metre in Andorra remain below those in cities such as Paris, Monaco, Geneva, Zurich or even Barcelona for equivalent properties. The value for money remains excellent.

The purchasing process in 5 steps

Buying a property in Andorra follows a structured process in five main steps.

Step one: search and selection of the property. It is recommended to work with a local estate agent with thorough knowledge of the market, parish by parish. Aurea Gestoria Group has a network of trusted property partners and supports its clients in selecting properties that match their criteria and wealth strategy.

Step two: legal and technical verification. Before any commitment, it is essential to verify the title deed at the Cadastre, the absence of charges or mortgages, the planning compliance of the property, and its technical condition (surveys). An Andorran lawyer specialising in property law should be consulted at this stage.

Step three: signing the preliminary sale agreement (contracte d'arres). This document commits both parties and sets out the conditions of the sale (price, timeframes, conditions precedent). A deposit of 10% of the price is generally paid at this stage.

Step four: obtaining foreign investment authorisation. Any purchaser of foreign nationality must obtain prior authorisation from the Andorran government to acquire a property. This administrative procedure takes approximately 4 to 6 weeks.

Step five: signing the notarial deed (escriptura publica) before a notary and payment of the balance. The transfer of ownership is registered at the Cadastre and the transaction is finalised.

Foreign investment tax

Since 2012, foreigners can freely acquire property in Andorra, subject to prior authorisation and payment of a specific foreign investment tax.

This tax is progressive according to the amount of the investment. It amounts to 3% for an investment below 450,001 euros, 5% between 450,001 and 750,000 euros, 8% between 750,001 and 1,500,000 euros, and 10% above 1,500,000 euros. These rates are applied in bands, similar to a progressive tax scale.

This tax is borne by the foreign purchaser and is in addition to notary and registration fees. It represents a significant cost that must be factored into the overall acquisition budget. However, it is important to note that Andorran residents (whether passive or active) are exempt from this foreign investment tax for the acquisition of their principal residence.

Emphyteutic leases

A distinctive feature of Andorran property law is the existence of emphyteutic leases (censos). This real property right, of medieval origin, allows a third party to enjoy a property for a very long duration (often 50 to 99 years) in exchange for a modest rent (emphyteutic canon). Certain plots of land and properties in Andorra are still subject to this regime.

For the buyer, it is crucial to verify whether the desired property is in full ownership (ple domini) or subject to an emphyteutic lease. In the latter case, the purchaser's rights are limited in time and specific obligations apply. Your lawyer and gestoria must imperatively verify this point before any transaction.

The rental market

The Andorran rental market is extremely tight, with a near-zero vacancy rate in the central parishes. Rents have risen considerably in recent years, in line with the increase in purchase prices.

For a two-bedroom flat in the centre of Andorra la Vella or Escaldes-Engordany, expect between 1,200 and 2,000 euros per month. For a premium property with three bedrooms and parking, rents can reach 2,500 to 3,500 euros per month. Individual chalets are let from 3,000 euros per month.

The Andorran government has recently introduced measures to regulate the rental market in order to protect permanent residents against rising rents. Annual revision caps and enhanced protections for tenants are being implemented. For investors, seasonal (tourist) letting remains highly profitable, particularly in parishes close to ski resorts, with gross annual rental yields that can reach 5 to 8%.

Planning permission

For investors wishing to build in Andorra, obtaining planning permission (llicencia d'obres) follows a rigorous procedure. The project must comply with the parish urban plan (Pla d'Ordenacio i Urbanisme Parroquial - POUP), respecting rules on height, density and landscape integration.

Processing times vary from 3 to 12 months depending on the complexity of the project and the parish. Recent reforms have sought to simplify and accelerate procedures, but caution remains advisable. Working with a local architect and a specialist gestoria such as Aurea is strongly recommended to navigate the administrative intricacies.

Advice for buyers

Several recommendations are essential for a successful property investment in Andorra.

Plan your search ahead. The market is tight and quality properties sell quickly. Begin your search several months before your desired move-in date.

Define your strategy clearly. Are you buying to live in, for long-term rental investment, or for seasonal letting? The answer to this question determines the parish, the type of property and the budget.

Allow a realistic budget. To the purchase price, add the foreign investment tax (3 to 10%), notary fees (approximately 1%), Cadastre registration fees (0.1 to 0.3%), and lawyer and gestoria fees.

Engage local professionals. The Andorran market has its legal particularities (emphyteutic leases, co-ownership law, parish regulations). Expert guidance is indispensable.

Visit several parishes. Each parish has its own atmosphere, altitude, sunshine and pace of life. Take the time to discover Andorra before committing.

Conclusion

The Andorran property market in 2025 offers remarkable opportunities for astute investors. Despite the significant price increases in recent years, the fundamentals remain solid: growing demand, limited supply, advantageous tax framework and exceptional quality of life. Whether you are looking for your principal residence, a pied-a-terre in the Pyrenees or a profitable rental investment, Andorra deserves your attention.

Aurea Gestoria Group supports you at every stage of your property project in Andorra, from searching for the property through to finalising the acquisition, including administrative procedures and the tax optimisation of your investment.

The information provided is for guidance purposes only. Contact Aurea for personalised support.