Andorra’s Real Estate Market (2019–2025): Prices, New Developments and Housing Access

💡 Introduction

Over the past few years, Andorra’s property market has grown steadily, becoming one of Southern Europe’s most selective and supply-constrained markets.
Attractive taxation, high living standards and limited housing availability have driven a sharp rise in prices since 2019.
Today, with high-end developments, virtually no rental supply and new regulatory measures, informed decisions and professional guidance are more crucial than ever.

➤ If you want to learn more about Andorran Taxation, read our article.

📊 Price evolution (2019–2025)

According to Cadena SER and Ara.ad, the average price per square metre increased from about €2,500–3,000 in 2019 to €4,100–4,400 in 2025, peaking above €6,000/m² in central parishes like Escaldes-Engordany and Andorra la Vella.

Prices have stabilised within a range starting at around €4,000/m², rising beyond €6,000/m² for prime or new properties.
This reflects a structurally tight market where scarcity keeps values high even for older dwellings.

🏗️ New developments and residential towers

New-build projects remain the main growth driver, particularly in Escaldes-Engordany, where developments include:

• The Clot d’Emprivat Towers, three high-rise buildings located between Consell de la Terra and Nacions Unides Avenues.
• ND Zenit, offering one- to five-bedroom apartments with premium finishes.

Such projects have pushed new-build prices to €5,500–6,500/m², with exceptional units exceeding €7,000/m².
Even in less central areas such as Encamp, Sant Julià or Canillo, it is now uncommon to find properties below €4,000/m².

📈 Rental market and yields

The rental market is extremely tight: listings vanish within hours and average monthly rents now exceed €3,000.
Despite this tension, gross rental yields generally range between 4 % and 6 % per year, depending on location and condition.
Mid-sized, well-located units offer the best prospects, though limited turnover constrains availability.

➤ Discover why more and more entrepreneurs are choosing to live in Andorra.

⚖️ Regulation and legal framework

The Government of Andorra has introduced measures to moderate market pressure:

• Omnibus Law 2025: restricts foreign investors to two residential properties and tightens residence quotas.

➤ If you want to learn more about the Omnibus Law, read our article.

• Property Register: under development, expected to be operational by 2027.
• Public Cadastre: gradually opening to public access.
• Notarial system: in the absence of a property register, notaries are responsible for formalising and preserving property deeds, ensuring title continuity until the new registry is implemented.

💰 Housing access and financing

For middle-income households, access to housing has become difficult.
A standard 80–90 m² apartment often costs €350,000–400,000, excluding taxes and fees.

Andorran banks are increasingly open to granting mortgages at more competitive rates.
If the Euribor continues to fall, financing conditions could slightly improve, though scarcity will remain the key factor.

🏬 Commercial premises: a steadier market

Unlike housing, commercial premises have not followed the same upward trend.
Oversupply in some areas and a shift toward hybrid retail models have kept prices moderate or declining.

🎯 Outlook and conclusion

Andorra’s property market remains dynamic yet highly selective.
High prices and limited supply are expected to persist despite new regulations and easing credit conditions.

In short: in Andorra, it’s no longer about finding the lowest price, but finding availability.
Reliable information and professional advice remain essential for any investor or future resident.

📚 Related articles

• Setting up a company in Andorra: steps, requirements and benefits — Explains how to establish a company and when professional guidance is essential.
• Taxation in Andorra: structure, rates and real advantages — Provides the fiscal context consultants and advisors need to master.
• Active and passive residence in Andorra (2025) — Shows how different residence types impact business management.

Last review date: October 2025.