Property sector says restrictions on foreign investment are worsening Andorra’s housing shortage
Ribó points out that the various legislative changes have caused a feeling of legal insecurity that have discouraged the rental market
The president of Andorra’s professional association of estate agents and property managers (AGIA), Jordi Ribó, believes restrictions on foreign investment are making it harder to expand the country’s housing supply.
Speaking to La Veu Lliure following the association’s latest report, he argues that Andorra needs this investment and warns that obstacles facing foreign developers make its property market less attractive.
Ribó links the difficulties in launching new developments to investment restrictions and what he describes as legal uncertainty. According to the AGIA president, investors pull back when they are uncertain about the conditions under which they will be able to operate.
He questions the direction of policies that have curbed foreign capital inflows. In his view, this investment is necessary to build homes and increase the available supply.
Concerns over legislative changes and rental contract extensions
Ribó points to successive regulatory changes and extensions to rental contracts. He believes the accumulation of these measures creates uncertainty among market participants and influences investment decisions.
Regarding residential rentals, the AGIA president says some owners are waiting to sell their properties rather than putting them on the rental market. He distinguishes these owners from large groups that retain rental homes as part of their property portfolios.
His assessment focuses on the conditions he believes would encourage developers and owners to invest in residential property: regulatory stability and an attractive investment environment.
The supply of homes for sale falls by 10.5%
Ribó’s comments come as the number of homes advertised for sale declines. AGIA’s latest report, covering the first half of 2026, records 1,590 homes for sale, compared with 1,777 in the second quarter of 2025. This represents a 10.5% year-on-year decrease, with the total including both flats and single-family homes.
These figures describe changes in advertised supply. The link to restrictions on foreign investment is the association president’s assessment.
Escaldes-Engordany has the largest number of homes listed, with 408, followed by Canillo, with 344, and Andorra la Vella, with 272.
Only 5.5% of flats are advertised for less than €300,000
The report also shows the shrinking share of flats priced below €300,000. This bracket accounts for just 5.5% of listings, down two percentage points from 7.5% at the end of 2025.
Meanwhile, 76.1% of advertised flats have asking prices above €500,000. Specifically, 48.7% are listed at between €500,000 and €1 million, while 27.4% are priced above €1 million. Properties between €300,000 and €500,000 account for the remaining 18.4%.
The average asking price per square metre for flats has reached €7,495, an increase of 4% compared with the end of 2025. These are prices sought by sellers, not the final prices paid in completed transactions.
Against this backdrop, Ribó argues that encouraging the investment needed to build housing must form part of the response to the supply shortage, and calls for conditions that give developers confidence.
