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Andorra Opens 14 Affordable Rentals in Repurposed Hotel, Seeks More via €21.6M Tender

Andorra's INH launches applications for 14 subsidised units in Aixovall hotel, while a major tender aims to secure 150 more affordable homes from existing buildings amid housing crisis pressures.

Key Points

  • INH opens applications for 14 units in Font de Ferro hotel, Aixovall: rents €361-€642, 25% below market.
  • Eligible households on list before June 10 apply by June 26; €21.6M tender for 150 units active until June 30.
  • Tender scores on price, readiness, approvals; Housing Minister expects 6-7 bids.
  • Andorra la Vella pushes senior housing tender for 18 units in former Jaume I hotel by 2027.

The Institut Nacional de l’Habitatge (INH) has opened applications for 14 affordable rental units in the repurposed Font de Ferro hotel in Aixovall, adjacent to the local roundabout. Households on the housing list before 10 June can submit requests by 26 June, per this week’s BOPA notice. The INH will notify eligible families based on household size and unit availability.

The units include one studio, two one-bedroom flats, and 11 two-bedroom options ranging from 38 to 67 square metres. Monthly rents span €361.46 to €642.05, limited to 30% of household income—around 25% below market rates—with subsidies covering gaps for qualifiers. This aligns with recent broadened eligibility for public housing.

Separately, the government’s €21.6 million tender—potentially expandable to €35 million—for buying complete residential or former hotel buildings to yield about 150 affordable units remains active. Published in Monday’s BOPA, it seeks unpriced interest by 30 June, then priced bids after assessments.

Evaluation grants up to 100 points: 50 for pricing against valuations (factoring renovations; overages disqualify), 20 for 30-day occupancy readiness, 10 for pre-approved basic works by the Col·legi Oficial d’Arquitectes d’Andorra, and 5 points each for unit count (peaking at 41-50), renovation costs (full at ≤5% of price), parking (max at 96-100%), and proximity to Andorra la Vella’s km 0. Habitable under-construction sites by end-2027 qualify.

Housing Minister Conxita Marsol recently forecast at least six or seven bids, based on prior outreach in Andorra la Vella, Sant Julià de Lòria, and Canillo, plus three new inquiries the previous day. She prioritises low-renovation, fast-ready properties but will consider high-volume or strategically located options needing work, with budget increases viable for strong proposals.

Andorra la Vella councillor Marc Torrent, in recent interviews including with the Andorran News Agency, warned that even 500-600 public units would address only a small share of the parish’s 10,000-12,000 homes amid the ongoing crisis. He argued new construction alone falls short, citing Borda Nova’s multi-year delays and the fact that the crisis impacts thousands, not dozens.

With nearly 80% of rentals still price-frozen, Torrent highlighted looming pressures from phased defrosting, noting no relief for families this year or next. He called for broader action, such as restricting foreign investors to one property—instead of the current two—and reversing the residency-linked investment threshold rise from €600,000 to €800,000, which he said merely drove up prices without swift impact.

Torrent endorsed Andorra la Vella’s diversified strategy via public-private partnerships, including Terra Vella, Cedre flats, and the former Jaume I hotel refurbishment—now La Llar—on Roureda de Sansa street. During Tuesday’s site visit with Cònsol Major Sergi González, he outlined the €2 million (or €1.8 million estimated) tender, published Wednesday in BOPA, for 18 senior units: nine studios and nine one-bedrooms across six floors, one mobility-adapted, plus shared laundry and storage. Bids close 30 July, adjudication from 5 August, council approval in September, works starting October for October 2027 availability.

Closed five or six years but structurally sound, the building needs room mergers, kitchen updates, bath-to-shower conversions, and toilet retention. Aimed at Casal Calones’ 19-person waitlist under the Reviu programme for vacant properties, it will integrate with a new unified registry. Torrent stressed collaboration with owners, banks, and firms to release more stock, citing Vienna’s century-long public housing model and Andorra’s historical lag. He urged long-term planning to equip the parish for crises 40-50 years ahead.

INH reminders: new list applications process in two months, with income exemptions for some disability pensioners and limits at 2.2 times minimum wage for singles, 2.5 for childless couples or one-child families, and 2.9 otherwise—prioritising homelessness, rent burden, or local ties.

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Andorra Opens 14 Affordable Rentals in Repurposed Hotel, Seeks More via €21.6M Tender | Alto