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

Andorra's property market continued to cool in Q2 2026, with transactions falling 11.8% year-on-year to 473 as available stock grew and closing prices trailed far behind asking prices.

The Andorra General Real Estate Agency (AGIA) data showed home sales dropping 40% to 412 units. Average closing prices stood at €4,457 per square metre, up 6% from Q2 2025 but down 4% from Q1 2026's €4,662. Listed prices averaged €7,178 per square metre—a 24.8% rise since late 2025—with flats at €7,495 per square metre. Average asking prices for homes reached €1.187 million, a 5.5% semester-on-semester decline but 29.8% above last year's levels.

Stock rose 2.5% to 1,590 units by end-June, the highest in six months and up across four of Andorra's seven parishes. Listings priced €500,000-€1 million accounted for 48.7% of supply, while those under €300,000 fell to 5.5% from 13.4% a year earlier. Escaldes-Engordany led in high-end stock, with 165 homes between €500,000 and €1 million, plus over 100 from €1-2 million.

Rental supply nearly doubled to 319 units from 165 at end-2025, now 16.7% of total stock versus 9.6% previously. Monthly rents eased to €25.4 per square metre from €25.7, averaging €2,874 nationwide. Andorra la Vella had 89 rentals, Canillo 71, while Escaldes-Engordany topped rates at €27.1 per square metre and €3,601 monthly.

Luis Alberto Fabra Garcés, from the University of Zaragoza's Real Estate Market Chair, described the shift during the AGIA analysis presentation. "We're in a different real estate reality, with progressive reduction," he said, noting the gap between owners' €7,200 per square metre expectations and market closings at €4,457. Owners slow to adjust face sales challenges, he added, with price corrections typically lagging activity drops by three to five quarters.

Fabra saw the slowdown as market adaptation amid 4.2% mid-semester inflation, 4.3% wage growth matching incomes, and high interest rates. AGIA president Jordi Ribot called it a natural stabilization after peaks, aiding rental and buyer options.

An El Periódic editorial highlighted persistent affordability issues, with €1,394 average monthly mortgages and closing prices half of listings, despite rental growth. First-half 2026 transactions totaled 2,093, down from 2,175 in 2025; full-year activity fell 11.9% to 5,600. Demand favors smaller one-bedroom units, spurring urban density proposals and better rental tracking. Experts predict over 20 deals per 1,000 residents by year-end.