Housing in Andorra: €35M plan to curb rent increases

Last update: June 2026. The information in this article is regularly checked against official sources from the Government of Andorra.

Introduction: The challenge of finding housing in Andorra in 2026

In recent years, Andorra has established itself as one of Europe's most sought-after destinations for entrepreneurs, digital professionals, investors, and families seeking a change of scenery. The reasons are clear and well-known: an unparalleled natural environment, near-perfect levels of public safety, an excellent multilingual education system, and, of course, a highly competitive tax framework. However, this enormous appeal has brought with it a significant challenge, one it shares with other thriving economies: the difficulty of accessing the housing in Andorra.

Over the past few years, the constant growth of the working population and the arrival of new foreign residents have generated significant tension in the Andorra real estate marketThe supply of available properties has not been able to keep pace with an increasingly global and demanding market, which has driven prices upward. rental prices in AndorraThis situation not only affects local families, but also temporary workers in the service and tourism sectors, which are fundamental to the economy of the Principality.

Aware of this problem, the Government of Andorra has decided to take action with a direct and unprecedented economic offensive. As of June 2026, the Andorran Executive has launched an ambitious public investment plan with the aim of constructively intervening in the real estate market, immediately expanding the stock of housing designated for social and affordable rental. If you are thinking about living in Andorra 2026This measure is of interest to you, as it promises to reshape housing availability in the coming months.

The new public housing plan: 35 million euros to buy buildings

Andorra's Minister of the Presidency, Economy, Labor, and Housing, Conxita Marsol, recently appeared before the media to present a new and urgent public tender focused on the direct acquisition of residential buildings that are already constructed or in the final stages of construction. This is a swift and strategic move seeking short-term solutions.

The plan has a very clear financial design:

• Guaranteed initial investment: The competition begins with an initial budget allocation of 21.6 million euros, allocated entirely to the purchase of privately owned properties that will pass into public hands.
• Increased funding: Minister Marsol has made it very clear that if the market responds favorably and good purchasing opportunities are identified, this allocation will be increased to €35 million. These additional resources come directly from the budget surplus that the Principality recorded in the 2025 fiscal year.
• Very tight deadlines: The government is not seeking a bureaucratic process that drags on for years. Offers from owners and developers could be submitted during the second half of June 2026, with the firm objective of finalizing the awards and purchases of the properties by the end of this summer.

The main goal of this massive capital injection is to immediately add around 150 new apartments to the country's public housing stock. This will bring Andorra's projected inventory of nearly 500 public housing units to almost 650. Affordable rental AndorraWith this measure, the Executive aims to ease the financial burden on middle and working-class families, creating a housing safety net that levels the playing field against the luxury sector.

What type of properties is the Andorran government looking to acquire?

Unlike traditional state plans in other European countries, which tend to be based on building housing from scratch (a process that usually takes between three and five years), Andorra's 2026 strategy prioritizes immediacy and pragmatism. The informal motto of this public competition is clear: speed and real usefulness.

The tender specifications prioritize buildings that are already fully completed or in the final stages of construction, requiring that they be ready for occupancy within two to three months of signing the purchase agreement. Minister Marsol has revealed that the government already has several informal proposals for properties that meet these requirements.

Regarding the location of the properties, initial reports indicate that a significant number of the candidate buildings are located in the city centers of the most populated parishes, such as Andorra la Vella and Escaldes-Engordany. Securing housing in these urban areas is crucial, as this is where the greatest demand is concentrated among local workers who need to commute daily without having to rely on long car journeys.

However, the process will not be without technical rigor. During July 2026, the crucial step of the plan will be the official appraisal and valuation phase of the submitted applications. The Andorran government wants to ensure that the public surplus is used with the utmost responsibility, paying fair market prices for the buildings and preventing any kind of speculation with state funds.

How does this measure affect foreigners who want to live in Andorra?

If you're a foreign professional, an investor, or planning a move to the Principality, you might be wondering how a public and social housing rental plan affects you. The answer is that it has an indirect but very positive impact on the entire residential ecosystem of the country.

First, the purchase and opening of these 150 affordable rental homes will act as a safety valve for the saturated private market. By relocating dozens of local families and workers to the public housing stock, it will automatically free up apartments in the general rental market. With fewer people competing for the same mid-range apartments, price pressure should stabilize, making it easier to find a suitable home. housing in Andorra for new residents.

Secondly, this plan guarantees the stability of Andorra's social fabric. For Andorra to continue functioning as the idyllic destination it is, it needs a solid base of workers in the service sector, commerce, hospitality, healthcare, and ski resorts. Ensuring that these key professionals can afford decent housing without spending their entire salaries on rent prevents the brain drain and guarantees that the quality of life enjoyed by higher-income residents is not diminished by a lack of services.

Finally, from the perspective of foreign investment, this move demonstrates that Andorra's institutions act proactively but respectfully of private property. Instead of implementing aggressive interventionist policies or forced price freezes that would drive investors away, they have chosen to prioritize the protection of private property. Andorra real estate marketThe Government chooses to compete constructively, increasing the public supply of housing through the direct purchase of assets from private developers.

The global strategy: more than 100 million euros to combat the housing crisis

This expedited public tender for up to €35 million for the purchase of buildings is not an isolated, last-minute action. It is part of a much broader roadmap that the Andorran government has been implementing throughout its term, accumulating a total investment of over €100 million dedicated exclusively to housing policy.

Andorra, due to its limited geographical size in the heart of the Pyrenees, cannot grow horizontally indefinitely. Therefore, the country's housing solutions require meticulous planning. Compared to other European microstates or neighboring major cities that suffer from serious accessibility crises, the Principality is demonstrating remarkable legislative and financial agility in mobilizing its public resources to correct market dysfunctions.

For foreigners currently looking for a rental apartment in the Principality this year, here are some very useful practical tips:

• Anticipation and documentation: The market moves fast. Have all your documents ready in advance (passport, apostilled criminal record certificate, employment contract or proof of company incorporation in the country) so you can formalize any rental offer immediately.
• Expand your search radius: Although the central parishes are very attractive, residential areas in parishes such as Encamp, Canillo, La Massana or Ordino offer excellent housing options with quick connections and somewhat more competitive prices.
• Professional advice: Having the support of trusted local agencies and advisors will save you time and give you access to properties that often don't get published on traditional online real estate portals.

Andorra's firm commitment to balancing its economic growth with the social well-being of its inhabitants confirms that the country remains a safe, predictable, and excellent place to both do business and build a long-term home.

Are you planning your move to Andorra and worried about the housing market? At Andorra Solutions, we help you manage your residency and advise you on finding the best real estate options tailored to your needs. Contact us today!