AGIA report reveals 13% annual price surge, plummeting supply, and booming transactions, pricing out workers

The Col·legi Professional d’Agents i Gestors Immobiliaris d’Andorra (AGIA) released its fourth market analysis on Thursday, showing property prices hitting a record €4,373 per square metre amid a 12.7-13% supply drop and surging demand.

Average prices rose 12.9-13% year-on-year, 46.5% over three years, and 81.5% over five years. Apartments averaged €4,440 per square metre, up 6.5% annually, while single-family homes reached €3,256 per square metre, a 34% increase. Escaldes-Engordany topped parish prices at €5,408 per square metre (up 5%), followed by Andorra la Vella at €5,106 (up 41.3%). Final transaction prices frequently surpassed listings, reaching €6,737 per square metre in some deals—far above the €4,373 average—highlighting a tense market where buyers paid premiums.

The average listed home price stood at €1.256 million in the third quarter of 2024, with apartments at €956,401. Four in ten sales exceeded €500,000, and three in ten topped €1 million. Affordable housing shrank: only 7.5% of listings fell below €300,000, down from 13% six months earlier, while 73% surpassed €500,000. Small units under 80 square metres comprised just 17.3% of supply, mismatched with average households of 2.2-2.3 people. New builds averaged 242 square metres, pushing prices higher.

Supply stood at 1,551 homes after the 13% decline. Transactions boomed, with 575 in the third quarter of 2025—a 65.2% year-on-year jump—and 2,218-2,234 over the past year, the highest in a decade. Total value reached €342.42 million for the quarter (up 28.4%) and nearly €1.4 billion year-to-date, records since 2013. Andorra recorded 25 sales per 1,000 residents annually, exceeding Spain’s 10-14 and reflecting strong local growth (2.3%, or 2,000 new residents) plus foreign investor interest.

Luis Alberto Fabra, director of the University of Zaragoza’s real estate chair and report author, warned that workers face major barriers to buying. He urged differentiated tax treatment for residents versus investors, smaller units like 70 square metres at around €260,000-€280,000, segregating large homes into more units, and communal rules allowing denser builds. Developers would favor more units at lower prices for viability, he said, while foreign buyer limits depend on government strategy. Rental supply hit 165 units by late 2025 (down 37% semester-on-semester), with nine in ten listings for sale; averages were €25.7 per square metre or €3,208 monthly.

Authorities have not responded to the findings.