Andorra Commercial Property Prices Drop 5.2% in December

Commercial property sale prices in Andorra fell 5.2% in December, ending months of steady increases, according to the latest RID Analytics report. The average price per square metre now stands at €3,264, down from autumn peaks and marking a temporary slowdown in the investment market.

This drop contrasts sharply with the rental sector's resilience, particularly in central Andorra la Vella, where demand remains strong. Office spaces lead with the highest sale values at €5,079 per square metre, reflecting their stability and appeal to long-term professional or administrative users less prone to market swings.

Rental prices dipped slightly by 1.3% to an average of €18.4 per square metre monthly, yet retail spaces averaged €25.9, peaking at €33.4 in Andorra la Vella. High-traffic areas like Avinguda Meritxell, Vivand, and Fener Boulevard maintain near-full occupancy, keeping lease terms tight.

Analysts attribute the sales decline to year-end investor caution and efforts to close deals before fiscal balances, rather than any structural shift. Yields stay attractive, as lower purchase costs paired with steady rents create opportunities, especially in Escaldes-Engordany, Andorra la Vella, and Canillo.

Some businesses are relocating to less pressured parishes like Encamp (€15.2 per square metre) or Sant Julià de Lòria to cut costs, aiding new ventures or expansions unable to afford prime spots. New urban regulations and developments may add ground-floor retail by late 2026, but for now, high rents challenge startups and independent operators without strong backing.

RID describes the market as transitional, with rentals dominating access and sales prices correcting after years of growth. Early 2026 data will clarify if this is a blip or a broader trend amid economic uncertainty.