Andorra Minister Slams Real Estate Head Over Mortgage Scheme Criticism

Conxita Marsol, Andorra's Minister of Presidency, Economy, Work and Housing, has sharply criticised AGIA president Gerard Casellas for questioning the government's mortgage guarantee scheme for first-time buyers, urging the real estate body to propose solutions rather than dismiss it outright.

Speaking on Friday during the announcement of new business subsidies, Marsol rejected Casellas's view that the programme lacks promise. She highlighted its early success: 11 applications in two months, compared to 19 over three years under the previous scheme. Two public guarantees have been signed, with others pending budget approval, and average loans exceed €400,000—below the €600,000 ceiling for new and resale properties. The government covers interest for the first seven years. "It's easy to say it has no future," Marsol said. "We're making major efforts with significant funds to help citizens buy their first home, alongside affordable rentals. We need eight to nine months for a proper assessment."

Casellas stood by his stance in comments to media on Thursday, citing young buyers' reluctance to commit to 80-year loans on high-value properties, often requiring couples to qualify due to monthly costs exceeding typical salaries. He reported no noticeable uptick in interest, though he praised the intent behind any housing support.

Marsol called for AGIA collaboration, including matching buyers with homes and sharing ideas. She stressed the government's openness to improvements.

On vacant flats, around 800 letters have gone to owners, with 700 to 1,000 more planned for a total nearing 1,500. Initial replies cite inheritance delays, court cases or merged units, helping regularise some properties. Non-responders will be deemed vacant, triggering formal files in a second phase—though no start date is set, given the need for careful checks.

Progress continues on rental deregulation, with nearly 400 tourist flats now long-term rentals before the 2028 deadline, and inactive companies legislation due for parliamentary debate in March.

Demand strains Andorra la Vella's Jovial building, where 66 of 72 youth emancipation flats are occupied, six more tenants due this month, and 110 on the waitlist. Comú housing councillor Marc Torrent said this shows insufficient action on the crisis, calling for root-cause measures. The 2009 project, with three studios, 55 one-bedrooms and 14 two-bedrooms, has seen delays from contract extensions, government use of eight units for social needs, and refurbishments.

The comú recently took direct control from the dissolved Joves i Vivenda Alternativa SLU, terminating two contracts over €15,000 in unpaid rent since 2020-21 and pursuing eviction of a subletting tenant identified via anonymous tip last August. Social services will support any displaced subtenants. A new monitoring protocol aims to prevent repeats. Waitlist numbers rose from 99 in November 2024.