Andorra Landlords End Leases for 25 Families by 2027 Amid Rent Freeze Expiration

Landlords at two buildings on Avinguda Doctor Mitjavila in Andorra la Vella have notified all tenants that annual rental contracts will not renew and must end in July 2027, affecting around 25 families, many long-term retirees who have lived there for 30 to 50 years. The formal letters, sent in recent days and citing contractual and legal requirements, state the owners' intent not to extend leases, demand keys be returned by the end of July 2027, and note that any continuation would require at least doubling current rents. Tenants under 2019 rent-freeze extensions report shock, with some receiving no verbal explanations or relocation offers despite decades of residency and minimal past maintenance.

This follows the recent €11 million sale of a 36-apartment building at number 16 Avinguda del Fener in Escaldes-Engordany to a developer marketing units individually at €4,850 to €5,800 per square metre. Most of its 80- to 86-square-metre apartments, mainly occupied by elderly Andorrans paying €200 to €900 monthly since the 1960s, are reserved with 10% deposits; eight remain available, alongside two sold commercial spaces and one listed at €3,200 per square metre. Renovation costs for outdated units are estimated at €37,500 to €56,000, with notarisation expected in June after property division. Tenants learned of the sale informally through rumours or an architect's visit, prompting legal consultations amid fears of cross-border medical disruptions and emotional distress over the original family's silence.

Mitjavila residents, facing proposals like hikes from €650 to over €1,000 monthly—deemed "unbearable" by those with pensions under €1,500—describe sleepless nights and uncertainty in a tight housing market. One 25-year tenant called the letter a "total surprise"; another with a €1,300 pension highlighted near-impossible alternatives. Sources note owners, often inheriting from prior generations, are shifting strategies amid rising maintenance and low yields.

The cases highlight a broader trend as rent freezes end, with owners selling to developers or terminating leases. Current law allows non-renewals for major safety renovations despite obligations to honour contracts; a parliamentary bill under debate—amendments voted yesterday—would permit evictions for owner/family use, substantial reforms, or new-buyer needs, plus price caps for pre-2012 contracts post-2027. Col·legi d’Agents i Gestors Immobiliaris president Jordi Ribó attributes this to market pressures favouring sales over rentals, with two more cases underway and eight buildings listed. Experts urge tenants to seek advice, as pre-approval actions may prove invalid.