Andorra Mortgage Lending Surges 38% to 832M Euros in 2025

New mortgage lending in Andorra climbed 38.4% in 2025 from the prior year, totaling 1,064 loans valued at 831.7 million euros, based on Department of Statistics figures. Residential mortgages for primary or secondary homes drove most activity, rising 37.5% to 961 loans with an average of 401,591 euros—up 20% from 2024's 334,102 euros. Monthly payments on these averaged 1,394 euros. Across all property types, average loan sizes jumped 46.1% to 781,640 euros, lifting monthly payments to 2,255 euros.

Parish breakdowns showed Canillo leading with 182 residential loans, followed by La Massana (169), Encamp (166), and Escaldes-Engordany (164). Loan volumes grew in every parish except Andorra la Vella, down 17.3%. By value, Andorra la Vella ranked highest at nearly 191 million euros for residential mortgages, while Escaldes-Engordany saw the biggest increase at 184 million euros. Non-residential loans—for hotels, commercial spaces, developments, and land—rose 47.1% to 445.7 million euros. Overall mortgage values more than doubled, up 102.1% year-on-year, with residential totals gaining 65.3%. Active mortgages carried an average interest rate of 3.7795%, with 13.35 years left to maturity. Andorran nationals took 90.3% of loans (961), versus 9.7% for non-residents (103), with borrowers averaging 40.2 years old.

The government's first-home ownership program has supported eight families with purchases completed from December 2025 to February 2026, guaranteeing 3.259 million euros in mortgages up to 600,000 euros each for primary residences. Individual guarantees ranged from 290,000 to 570,000 euros, specifically 570,000, 478,000, 395,000, 390,000, 387,000, 384,000, 365,000, and 290,000 euros. The state has paid 463,921 euros (or 463,925.20 euros per amortization tables) in interest over the initial seven years. Early payments apply fully to principal; from year eight, they shift to 12-month Euribor plus 0.50%, capped at 33% of income over 20-50 years, without exceeding age 80 at maturity.

Requirements include seven years of continuous legal residency (at least one per household), no property ownership globally, net worth under 30% of home value, income at least double the minimum wage, and no public debts. Banks assess solvency first, forwarding viable cases to the National Housing Institute for approval, followed by notarial agreements involving buyer, bank, and government. The program covers 100% of loans—including the typical 20% banks avoid—for seven years while handling all interest. It has received 19 applications, approving five, with three at the notarial stage; 14 involve couples, and average property costs stand at 400,000 euros. Annual funding totals one million euros through 2033, with room for expansion based on demand.