Andorra Banks Approve Record 1,064 Mortgages in 2025, Up 38%
Mortgage approvals hit historic high amid real estate boom, with residential loans surging 37.5% and average values jumping over 20%; foreign.
Key Points
- 1,064 new mortgages approved, +38.4% from 769 in 2024; first time over 1,000 since 2015.
- Residential: 961 approvals (+37.5%), avg €401,591 (+20.2%); overall avg €781,640 (+46.1%).
- Foreign applicants up to 103 from 36; nationals 90.3%; avg borrower age 40.2.
- Parish surges: Escaldes-Engordany +119%; total value €831.7M (+102.1%).
Andorra's banks approved a record 1,064 new mortgages in 2025, up 38.4% from 769 in 2024—the first year surpassing 1,000 since records began in 2015. Residential loans drove the increase, with 961 approvals rising 37.5% from 699 the previous year. Their average value increased 20.2% to €401,591 from €334,102, signaling higher housing prices amid a real estate boom.
The overall average mortgage reached €781,640, a 46.1% jump from €535,151, lifting the total value to €831.7 million—a 102.1% gain. Non-residential loans, covering hotels, commercial properties, developments and land, totaled 103, up 47.1%, with an average of €4.3 million each, up 70.2% from €2.54 million.
The Statistics Department published the figures on Thursday, highlighting eased bank lending standards. Nationals secured 90.3% of approvals, but foreign applicants rose sharply to 103 from 36, even with the foreign real estate investment tax in place. Borrowers averaged 40.2 years old.
Parish-level data revealed stark differences. Escaldes-Engordany saw the biggest volume surge at 119%, followed by Canillo (71.4%), Ordino (55.2%) and La Massana (51.7%). Andorra la Vella bucked the trend, down 17.3%. For residential loans, Canillo led with 182, then La Massana (169), Encamp (166) and Escaldes-Engordany (164). Residential loan values overall grew 65.3%, with Escaldes-Engordany up 184%; Andorra la Vella dropped 11.5%. Non-residential values climbed 150.4%, led by gains in Andorra la Vella, Encamp, Sant Julià de Lòria and Escaldes-Engordany.
The average interest rate on outstanding mortgages edged down to 3.7795% from 3.7901%. Monthly payments averaged €1,394 for residential loans and €2,255 overall, with 13.35 years left to maturity. In the second half of 2025, residential approvals rose 36.8% from the prior period, with La Massana, Escaldes-Engordany and Canillo topping values at about €45 million, €44 million and €40 million. The largest single loan, nearly €191 million, was in Andorra la Vella.
Original Sources
This article was aggregated from the following Catalan-language sources:
- El Periòdic•
Les noves hipoteques creixen un 38,4% el 2025, amb Escaldes-Engordany registrant el més elevat amb un 119%
- Diari d'Andorra•
La quota mitjana de les hipoteques és de 1.394 euros
- Bon Dia•
Augmenten un 38,4% les hipoteques concedides el 2025
- Altaveu•
L'import mitjà de les noves hipoteques per a la compra d'habitatge es dispara un 20% en només un any