Andorra's Espot Defends Housing Record, Unveils Renter Aid and Incentives

Andorra's Head of Government Xavier Espot defended the executive's housing record during Thursday's political orientation debate, accusing opposition parties of blocking and delaying initiatives for political gain while announcing imminent renter aid and parish-backed developer incentives.

Espot highlighted achievements including over €143 million invested in public housing stock, a rental contract registry with 5,510 entries averaging €13.90 per square metre, a 99% reduction in foreign property investment over three years, and measures returning more than 1,530 homes to the residential market. These included 466 units via habitability exceptions, 363 converted tourist apartments, 114 previously vacant properties, 45 linked to zero economic cessions, and 62 from unfinished building rules. Fraud controls since 2022 have generated 132 complaints, 35 sanction files, and over €190,000 in fines from 2024 alone.

He described rent thaw legislation as a gradual transition from an intervened market, balancing owners' rights to adjust rents with tenant protections against sudden hikes. Acknowledging public concerns—from youth emancipation to elderly stability—Espot stressed the crisis stems from decades without structural policy. Rent extensions since 2019 covered nearly 20,000 contracts but risked reducing supply long-term.

The flagship announcements target households spending over 30% of income on rent. An "extensive and ambitious" aid programme, due for approval soon and managed by the Housing department, will extend beyond those affected by ended extensions to include contracts signed from 2022 and new leases. It aims to reach more residents than existing social affairs aid.

Espot also outlined a joint executive-parish plan offering fiscal, financial, and urban incentives to private individuals or firms building or renovating affordable rental housing for a set period. Details include around 10% non-repayable construction grants, three-to-six months' rent default guarantees, Renova plan priority, exemptions from corporate tax, IGI VAT, and property transfer tax (ITP) for land purchases, plus favourable banking. The two-year scheme covers new builds and rehabs.

On Tuesday, Housing Minister Conxita Marsol presented the proposal to the seven parishes' consuls, who gave in-principle backing. La Massana's Eva Sansa welcomed close collaboration, noting shared urgency, while Andorra la Vella's Sergi González called it "late" but pledged joint effort, urging checks against duplicating parish measures and budget simulations. Variations may arise due to local land limits, as in Ordino. Parishes could waive building fees, utility hookups, rental income taxes, offer zero-interest grants, ease ventilation rules, or allow extra floors for viability.