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Andorra Launches €21.6M Tender for Affordable Rental Housing Buildings

Government tenders for existing buildings to boost public rental stock from 500 to 650 units by late summer, prioritising central, ready properties amid expanded eligibility.

Key Points

  • €21.6M initial budget (up to €35M) to buy nearly complete buildings, adding 150 units to public stock.
  • Bids open June 15, close June 30; ranked by completion, location, accessibility, parking.
  • National Housing Institute opens apps for 14 units in Aixovall hotel until June 26, income-based rents.
  • Updated rules ease access for vulnerable groups; new hotline logs 40 inquiries.

The Andorran Government has launched a public tender with an initial €21.6 million budget—expandable to €35 million from the 2025 surplus—to buy existing buildings for affordable rental housing. Housing Minister Conxita Marsol, who also oversees Presidency, Economy and Work, announced the process at a Wednesday press conference following the Council of Ministers meeting. She prioritised properties that are nearly complete, noting informal approaches for three or four such buildings, some ready for immediate occupancy and located in central areas.

Bids from individuals and companies open Monday, 15 June, and close Tuesday, 30 June. The tender bases will publish in an extraordinary BOPA on Monday. A single expert firm will handle valuations to apply uniform standards, with purchase prices capped at those figures. Properties will then rank on a points system considering completion status, central parish location, unit numbers, accessibility, parking and extra facilities. Marsol identified appraisals as the longest phase but said centralising them would accelerate decisions. She anticipates first purchases by late summer, adding roughly 150 units to the public stock, lifting it from about 500 to nearly 650 homes. Of the €35 million, €21.6 million targets buildings, €6.4 million land, €6 million construction and €1 million project preparation, with flexibility for shifts or top-ups as required.

One report cited an initial €20.6 million for buildings, though most confirm €21.6 million.

Separately, the National Housing Institute opened applications Friday for 14 units in the former Font de Ferro hotel in Aixovall, beside General 1 road. Registered applicants—95 families as of 10 June—have until 26 June to apply, with the institute notifying eligibles via edict in Wednesday's BOPA based on household size and flat types. The units comprise one studio, two one-bedrooms and 11 two-bedrooms, ranging 38-67 square metres, with starting rents of €361.46 to €642.05. Final rents adjust to 30% of household income, capped at 75% of market rates, and subsidies cover shortfalls for qualifiers. One unit and parking space suit reduced mobility needs.

This continues recent assignments at the former Àrtic hotel and Roureda de Sansa in Andorra la Vella, Pellicer in Canillo, Hermus in Encamp, and Ribasol in Arinsal, including 38 units last week.

Updated eligibility rules now ease access for vulnerable groups like solidarity disability pensioners lacking work capacity or those on invalidity pensions barring employment. Income caps rise to 2.2 minimum wages for singles, 2.5 for childless couples, single parents or one-child families, and 2.9 for households with two or more children—while demanding over 30% of current rent from income. Tenders will now run two rounds before direct awards, weighting housing need, rent burdens above 40%, emergency shelter stays and local ties.

The new 137 hotline and WhatsApp (670 137) logged around 40 inquiries since Monday, mainly on contract extensions, handled by housing technicians with a chatbot on standby if demand surges. The government has committed over €100 million to housing this term.

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