Andorra Sees 20% Drop in Foreign Property Investment Applications Amid Housing Curbs

Andorra's Housing Minister Conxita Marsol reported a 20% drop in foreign real estate investment applications from January to May 2026 compared to the prior year, signaling early effects from government restrictions amid ongoing parliamentary debate over housing pressures.

During a recent Consell General session, Marsol responded to Social Democratic deputy Pere Baró's concerns about 2025's 55.5% surge in foreign property investments to €514.3 million—equivalent to 12% of Andorra's GDP. Baró highlighted that 65% of those investments involved asset purchases, underscoring persistent market strain despite prior reforms like the urban moratorium, foreign investment tax, and limits on home acquisitions. He warned that such capital treats housing as a financial asset and urged bolder steps if trends persist.

Marsol cautioned against drawing firm conclusions from 2025 data, calling it a transitional year as new rules took effect. She noted 683 applications from individuals that year, including 222 from residents of under three years, and stressed the need for full 2026 figures to assess impacts fully. While open to reviewing opposition proposals if results fall short, she emphasized waiting on consolidated data before additional curbs, such as outright bans.

This exchange builds on earlier rental aid updates, where 49% of 1,431 applications for 2026 assistance were rejected as of 30 April due to tighter rules—up from 16.7% in 2025. Prime Minister Xavier Espot has pledged a more comprehensive program to address rent decontrol issues from 2027 onward.

Marsol also reiterated strong interest in the €21.6 million public housing fund, with at least six or seven owner proposals, mainly from Andorra la Vella, Sant Julià de Lòria, and Canillo. The public housing stock remains poised to cover demand for over 1,060 registrants, bolstered by new units in Ordino, Borda Nova I, Font de Ferro, and Escaldes-Engordany. Opposition critics, including Baró and Concòrdia's Núria Segués, continue pressing for reversals to aid rules and enhanced oversight amid these dynamics. Officials expect more rental applications later this year.