Andorra Judicial Auctions Surge with Housing Market Boom

Property prices at Andorra's judicial auctions are surging in line with the overheated housing market, with strong bidder interest now driving frequent sales in the first round at prices close to or above appraised values.

Yesterday's auction at Andorra la Vella's batllia exemplified the trend: all five lots from the Inter Esquí building in Aldosa, Canillo parish—flats ranging from 38 to 64 square metres, some with terraces and furnishings, plus parking spaces and storage rooms—sold during the initial bidding phase. Eight bidders competed, pushing final prices between 90% and 110% of October 2024 appraisals. Starting bids ranged from €125,000 for the smallest 39-square-metre unit to €421,000 for a lot bundling two larger apartments (64 and 60 square metres) with extras. Saig official Xavier Granyó, who oversaw the process, attributed the rapid sales to intense demand. "Lately, it's quite habitual for properties to be awarded quickly due to market conditions," he said. Previously, auctions often dragged to the third round at the legal minimum of 50% of value.

This shift mirrors broader dynamics, where appraisers set valuations using current market data, weighing size, features, and location—central spots command premiums over peripheral parishes. The process starts with an expert appointed by the case administrator. Former owners may request a counter-appraisal; if it differs by more than 20%, a third establishes a midpoint. "This procedure ensures maximum guarantees for everyone," Granyó said.

Auctions open at 90% of appraised value to draw near-market buyers, dropping to 70% and then 50% if unsold. Properties often bear liens or mortgages, cleared upon payment. Bidders must deposit 15% of the starting bid, with details on community fees and leases disclosed.

Granyó emphasised that auctions reflect true market value, not discounts. He pointed to a Sant Julià de Lòria apartment in the Rosa Maria building on Carrer de les Escoles, sold last week after drawing 35 bidders. The 52-square-metre (51.83 useful) unit, unrented but needing renovations and including fixtures, started at €167,135 (90% of its €185,706 appraisal) and fetched €241,000—far exceeding expectations. Regular participants, typically real estate firms or investors, now face stiff competition from individuals, including tenants where applicable.

The Inter Esquí lots, tied to the Assegurances Generals bankruptcy, have seen rising interest despite some hesitation over potential challenges from the failed insurer's bankrupt owners. From award to notary signing usually takes two to three months, barring claims.