Marsol Welcomes Nearly 30% Drop in Home Sales in Andorra: "It's What We Wanted"

Andorra's Minister of Presidency, Economy, Labour and Housing, Conxita Marsol, believes that the increase in the average price per square metre recorded during the third quarter of 2026 could have been influenced by a single high-value property transaction.

The minister has urged caution when interpreting the figures, warning that an exceptional sale can significantly distort statistics in a relatively small property market such as Andorra's.

Speaking to reporters during the presentation of Andorra Business research and development incentives, Marsol explained that the Government is reviewing recorded transactions to determine whether a particular sale had a disproportionate impact on the quarterly figures.

"We also believe it may be due to a specific, significant sale involving a large amount of money and relatively few square metres," she said.

The minister suggested the hypothetical example of a commercial property being sold for an exceptionally high price, although she did not confirm that such a transaction had actually taken place.

It should be noted, however, that statistics measuring average apartment prices are not necessarily comparable with those covering other types of property.

Government Wants to Wait Two More Quarters Before Assessing Price Increase

Marsol recalled that the average price per square metre had remained slightly above €4,000 over the previous three or four quarters. For this reason, she considers it premature to conclude that the increase recorded between July and September represents a lasting change in the market.

"I would still like to wait another two quarters to see whether we continue, at least, along the trend we had been following," she stated.

The minister stressed that figures from a single quarter can fluctuate considerably and that a longer period of observation will be necessary before drawing definitive conclusions about property prices.

Marsol Welcomes Decline in Property Sales: "It's What We Wanted"

Regarding the nearly 30% reduction in residential property purchases compared with the third quarter of 2025, Marsol welcomed the slowdown in real estate activity.

"It's what we wanted and what we were aiming for," she said.

The housing minister linked this development to measures introduced by the Government during the current legislative term, particularly its housing policies and the tax on foreign real estate investment.

According to Marsol, these measures take effect gradually and are intended to reduce pressure on the property market without bringing economic activity in the sector to a halt.

"There is still economic activity in this sector, but it is true that it has slowed somewhat," she explained.

Despite her positive assessment, the minister acknowledged that full-year 2026 data will be needed to determine how much of the decline can be attributed to government policies rather than other market factors.

Government to Meet Housing Union but Warns of Legislative Constraints

Marsol also addressed the meeting scheduled for Tuesday afternoon with the Housing Union, following demonstrations organised by the group to denounce the growing difficulties of accessing affordable housing.

The minister said the Government was willing to examine the union's demands but warned that major legislative reforms would be difficult to approve before the current parliamentary term ends.

"Our door is always open, and we are always willing to engage in dialogue," she said.

According to Marsol, some of the union's proposals had already been discussed in previous meetings, while others were new and would require further assessment.

She stressed that before setting implementation deadlines, both sides must first establish which measures they can agree on and how far the Government is prepared to go.

"We need to agree on how far we want to go and what we agree on," she stated.

Government Considers Publicly Supported Homes for Sale at Affordable Prices

On housing policy, Marsol defended the measures introduced during the legislative term, describing housing as "the absolute priority" of the Government.

She highlighted the expansion of publicly owned rental housing, financial assistance for families, and initiatives designed to encourage private developers to build additional homes.

In a new development, Marsol announced that the Government is beginning to explore the creation of a public housing stock intended for sale at affordable prices, describing the proposal as one of the challenges for the future.

The initiative would complement the existing public rental housing programme and aim to help more residents access homeownership.

The minister also reiterated the Government's objective of preventing households from having to spend more than 30% or 40% of their income on housing costs.

Finally, when asked about the possibility of the Housing Union organising a border blockade as a form of protest, Marsol referred to previous statements by Interior Minister Ester Molné and warned that "actions that harm the country are not good for anyone."