Andorra Property Prices Rise 6% in Q2 2026 Despite Falling Transactions

Andorra's property market entered a phase of moderation in Q2 2026, with transactions falling 11.8% year-on-year to 473 amid three consecutive quarters of declines, even as sale prices rose 6% to an average €4,457 per square metre.

The Andorra General Real Estate Agency (AGIA) presented the latest market study, prepared by Luis Alberto Fabra Garcés, chair director of the Real Estate Market Chair at the University of Zaragoza. Available stock climbed 2.5% since late 2025 to 1,590 units—a six-month high—with increases across four of the country's seven parishes. Nearly half of listings (48.7%) ranged from €500,000 to €1 million, while just 5.5% sat below €300,000, down from 13.4% a year prior.

Transactions for homes specifically totaled 412, down 40% from Q2 2025, with the 12-month figure at 1,932 versus 2,234 previously. Across all property types, the annual total reached 5,600, a 11.9% drop from 2025, and transfers of immovable goods fell 35% to around 1,090. Apartment, single-family home, and building sales declined 29.7% year-on-year. First-half 2026 volume stood at 2,093, compared to 2,175 in 2025.

Listed prices averaged €7,178 per square metre—up 24.8% annually from Q4 2025's €6,737 and 6.5% semester-on-semester—far exceeding final sale figures and reaching €7,495 per square metre for flats. Average offered home prices dipped 5.5% over six months to €1.187 million but remained 29.8% above last year's levels.

Fabra described the slowdown as positive after rapid price growth, pointing to higher interest rates and stagnant incomes amid 4.2% inflation at mid-semester, despite a 4.3% rise in average gross wages. He noted a stark gap between closing prices and owner demands. AGIA president Jordi Ribot, referring to the president of the Official College of Real Estate Agents and Managers of Andorra, called it a market peak followed by stabilization, in line with economic cycles.

Rental supply nearly doubled to 319 units from 165 at end-2025, accounting for 16.7% of total listings versus 9.6% previously, at €25.4 per square metre monthly—slightly below last year's €25.7. Ribot highlighted the benefits for choice in both rentals and sales. Mortgages remained key, with 1,064 granted in 2025 (a series high, up 38.4%), mostly residential at an average €396,329 and €1,394 monthly payment, with stable 3.78% rates.

Demand has shifted to smaller one-bedroom units for single households, fueling discussions on denser planning and better rental data. Experts predict activity above 20 transactions per 1,000 residents by year-end.