Back to home
Business·

Andorra Cuts INH Housing Funding by 40% in 2026

Government transfers to Institut Nacional de l'Habitatge drop sharply, but overall budget rises slightly due to expected 54% surge in rental.

Synthesized from:
ARADiari d'AndorraEl Periòdic

Key Points

  • Government transfers to Institut Nacional de l'Habitatge drop sharply, but overall budget rises slightly due to expected 54% surge in rental revenues from public housing.

The Andorran government will cut transfers to the Institut Nacional de l'Habitatge (INH) by 40% in 2026, dropping from €714,916 in 2025 to €428,972—a reduction of €285,944. The change appears in the draft general budget law for 2026, slated for approval this month by the Consell General.

Despite the lower government funding, the INH's overall budget will rise slightly by 2.51% to €1.383 million for both expenses and revenues, preserving its balanced books. Officials attribute this to expected revenue growth from services, projected to jump 53.98% from €569,178 in 2025 to €876,398 in 2026, an increase of €307,219.

The budget memorandum states that higher rental income from public housing properties—those newly managed in 2025 and added in 2026—will offset most management and maintenance costs. The INH aims for the public housing stock to become self-financing through its own revenues, though full operational status is needed first. Longer-term, the institute seeks full self-sufficiency to cover other initiatives like public protection housing and the Primer la Llar programme.

Personnel expenses will also climb 26.24%, or €81,632, from €311,042 in 2025 to €392,675 in 2026. This covers directorate pay, base salaries for permanent staff, social security contributions, salary grid adjustments for existing technicians, plus hires for a new technician, administrator, and caretakers to monitor public buildings.

The INH's core roles include developing housing indicators for quantitative and qualitative analysis, advising the government on public housing policies and strategic plans, processing protected housing allocations, and ensuring standards for quality, accessibility, and proper use. The budget supports these duties, including promotion of protected housing, alongside anticipated service revenues.

Share the article via