Andorra Apartments Sold Only for Investment, Banning Residency

A new residential building under construction in central Andorra la Vella is marketing apartments exclusively for investment purposes, barring buyers from using them as permanent homes.

Several families have inquired about purchasing units for personal use, only to learn the properties are not available for residency. Instead, the development targets investors who buy apartments—priced from €300,000 to nearly €500,000, with garages at around €40,000—and hand over management to the promoter. The company handles maintenance, tenant sourcing, and operations, guaranteeing buyers a net annual return of 5%, akin to a financial product.

The model locks properties into a rental scheme for an initial five-year lease contract. After that period, renewal requires majority owner approval, followed by a bidding process under the building's statutes to select a new operator. The promoter must at least offer to extend on the original terms. Revenue from the first six months of operations will fund marketing efforts and equipment upgrades for the complex.

This setup reflects a shift in Andorra's property market, prioritising yield generation over individual homeownership in prime locations. Details on the promoter or exact site remain undisclosed, but the project underscores growing demand for hands-off investment options amid rising construction in the capital.