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Mortgage approvals in Andorra hit a historic high of 1,064 in 2025, surging 38.4% from 2024 amid booming

property prices and looser lending, with total volume doubling to €831.7 million.

Synthesized from:
Diari d'AndorraEl PeriòdicBon Dia+1

Key Points

  • 1,064 total mortgages approved, +38.4% from 769 in 2024; first time over 1,000 since 2015.
  • Average mortgage value rose 46.1% to €781,640; total volume €831.7M, doubled from prior year.
  • Nationals took 90.3% of approvals; foreigners tripled to 103 despite investment tax.
  • Fastest growth in Escaldes-Engordany (+119%), Canillo (+71.4%); looser lending cited as driver.

Andorra's banks approved a record 1,064 new mortgages in 2025, marking a 38.4% increase from 769 in 2024 and the first time exceeding 1,000 since records began in 2015. Residential loans fueled the surge, with 961 approvals—a 37.5% rise from 699—while their average value climbed 20.2% to €401,591 from €334,102, reflecting rising housing costs in a booming property market.

The overall average mortgage value jumped 46.1% to €781,640 from €535,151, pushing the total volume to €831.7 million, more than double the previous year's figure. Non-residential loans, for hotels, commercial spaces, developments and land, reached 103—a 47.1% increase—with an average of €4.327.538, up 70.2% from €2.542.767. The largest single loan, nearly €191 million, went to a project in Andorra la Vella.

Nationals claimed 90.3% of approvals, but foreign applicants nearly tripled to 103 from 36, despite the foreign real estate investment tax. Borrowers averaged 40.2 years old. The average interest rate on active mortgages dipped slightly to 3.7795% from 3.7901%, with 13.35 years remaining to maturity. Monthly payments averaged €1,394 for residential loans and €2,255 across all types.

Parish breakdowns showed sharp contrasts. Approvals grew fastest in Escaldes-Engordany (119%), Canillo (71.4%), Ordino (55.2%) and La Massana (51.7%), while Andorra la Vella fell 17.3%. For residential loans, Canillo led with 182, followed by La Massana (169), Encamp (166) and Escaldes-Engordany (164). Residential loan values rose 65.3% overall, with Escaldes-Engordany up 184%; Andorra la Vella declined 11.5%. Non-residential values increased 150.4%, with strong gains in Andorra la Vella, Encamp, Sant Julià de Lòria and Escaldes-Engordany.

In the second half of 2025, residential approvals climbed 36.8% from the prior period, with La Massana, Escaldes-Engordany and Canillo posting the highest values at roughly €45 million, €44 million and €40 million respectively.

The Statistics Department released the data on Thursday, pointing to looser bank lending as a key driver.

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