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

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A steadily growing market with structural tensions

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.

Tax framework

If you wish to gain a detailed understanding of the Andorran tax framework, we recommend reading Taxation in Andorra: a practical guide to understanding taxes, obligations and real risks.

And if you want to understand why Andorra attracts so much interest, you can find the answers in Why so many entrepreneurs are relocating to Andorra.

Residence in Andorra

For anyone considering relocating to Andorra, we recommend reading Living in Andorra: the essential guide to obtaining residence and settling safely.

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 €5,000/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.

If you are considering acquiring property in Andorra, we recommend the article Where to live in Andorra: a complete guide to areas, towns and real differences between parishes, as it provides valuable information on the different areas and the specific characteristics of each property.

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 €5,000/m².

If you are considering purchasing a home, we recommend the article Buying property in Andorra: real risks and how to protect your investment.

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.

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.

Purchasing costs, sales cost and taxes

If you would like to explore real estate taxation and costs in greater depth, we recommend Real estate taxation in Andorra: a complete guide to buying, renting and selling with sound judgment.

Mortgages and banking finance

In addition, if you want to understand how banks finance property purchases, the article Mortgage in Andorra: requirements, real percentages and banking conditions can provide useful insight.

Commercial premises: a steadier market

Unlike residential property, commercial premises have not followed the same pace of price increases.
An abundant supply in certain areas and the shift of commerce towards hybrid models have kept prices more moderate, although they are inevitably influenced by rising residential property prices and land scarcity.

Over the past year, however, a significant increase in prices for this type of property has been observed, also affected by the rising cost of coworking and shared workspaces. This increase is driven not only by demand, but also by a specific regulatory environment. To explore this further, you may read Coworking in Andorra: new regulation, requirements and impact for entrepreneurs.

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.

📞 Are you considering living in or investing in Andorra?

If you are interested in purchasing property or relocating to Andorra, you can contact us through our form and share your questions or needs with us. We will be pleased to assist you.

If you are considering setting up a company, whether to acquire property or as an investment vehicle for other assets, we recommend reading Setting up a company in Andorra: steps, requirements and advantages for a simplified overview of the process, or The definitive guide to setting up a company in Andorra for a more detailed approach.

If, instead, you prefer a confidential and specialised advisory or consulting meeting from the outset, you can book it just below this article.

We remain at your disposal to assist you with anything you may need.

Last review date: December 2025.