Andorra Housing Prices Keep Rising Despite 44% Drop in Property Sales

Andorra's housing shortage is one of the main reasons property prices continue to rise despite a sharp decline in real estate transactions, according to Jordi Ribó, president of the Andorran Association of Real Estate Agents and Managers (AGIA).

Speaking on RTVA's Avui serà un bon dia programme, Ribó argued that Andorra has suffered from insufficient housing construction since the 2008 global financial crisis, leaving the country struggling to meet growing residential demand.

"Since the subprime mortgage crisis, there has been very little construction, and now everything is being built at once. That's why we're seeing more cranes," Ribó explained.

The real estate representative believes that Andorra's population growth is putting additional pressure on an already constrained housing market.

"If people keep coming, we need more homes," he warned.

His comments come as the Principality faces a deepening housing affordability crisis, with property prices continuing to increase despite significantly fewer transactions.

Real Estate Sector Warns of Legal Uncertainty in Andorra

Ribó also criticised the Andorran Government's approach to housing regulation, arguing that frequent legislative changes are creating uncertainty for investors and developers.

He specifically referred to Andorra's Omnibus Law and other recent measures introduced to regulate the property market.

According to the AGIA president, repeatedly changing the rules makes it more difficult for investors to plan long-term projects.

"You're not providing legal certainty," Ribó said, warning that regulatory instability could discourage investment in new housing developments.

He believes that a more predictable legal framework would help encourage construction and increase the number of properties available on the market.

His position contrasts with the Government's efforts to contain housing costs through regulatory intervention.

The debate highlights a central challenge facing Andorra: how to improve housing affordability while maintaining conditions that encourage investment and residential development.

Andorra Property Sales Fall 43.9% While Apartment Prices Rise 13.8%

The latest figures published by Andorra's Department of Statistics reveal a striking contrast between falling property transactions and rising apartment prices.

A total of 1,019 properties changed ownership during the third quarter of 2026, representing a 43.9% decrease compared with the same period in 2025.

However, the average price per square metre of apartments increased by 13.8% year on year, underlining the continued pressure on the housing market.

The figures also show a decline in real estate activity across several indicators:

• Property transactions: down 43.9% year on year.

• Quarterly transactions: down 6.5% compared with the previous quarter.

• Transactions over the past 12 months: down 27.4%.

• Property acquisitions by companies: down 67.3%.

• Purchases by private individuals: down 31.9%.

Despite the contraction in sales, prices have continued to increase.

For Ribó, this reflects a structural imbalance between the number of homes available and the housing needs of Andorra's growing population.

However, the statistical figures alone do not establish how much of the price increase is attributable to limited supply, changes in the types of properties sold or other market factors.

Andorra Needs More Housing Construction, Says Ribó

The AGIA president argues that the growing number of construction cranes visible across Andorra does not necessarily mean the country's housing shortage is being resolved.

Instead, he believes the current building activity reflects an attempt to compensate for years of insufficient residential development.

According to Ribó, the slowdown in construction following the 2008 financial crisis created a supply deficit that has become increasingly difficult to address as the population has expanded.

He maintains that building more homes is essential to easing pressure on property prices, while greater legal stability could encourage developers to launch additional residential projects.

The real estate sector's concerns come amid an ongoing debate over housing policy, government intervention and the availability of affordable accommodation for residents.

Andorra's property market is therefore facing a difficult combination of declining transactions, rising prices and persistent housing shortages, raising questions about whether current policies are helping or hindering access to housing.

The challenge for policymakers will be to reconcile the need for affordable homes with the long-term investment and construction required to expand the country's housing supply.