Andorra Relaunches Tender for Regulated-Rent Housing in Terra Vella

Andorra la Vella's municipal council has launched a new national tender for a regulated-rent housing project in Terra Vella, using a negotiated procedure with publicity after the initial bidding process failed when the sole submission did not meet requirements.

The council announced the relaunch on Wednesday via publication in the BOPA gazette. Cònsol Major Sergi González and Housing Councillor Marc Torrent, who also oversees Digital Transformation and New Technologies, emphasised the role of public-private partnerships in tackling the housing crisis. "We continue to back public-private collaboration because responses to the housing crisis must be collective, involving all actors," González said.

The scheme targets a council-owned plot in Terra Vella, purchased in 2015 and located opposite the Jovial shopping centre, for 40 to 50 rental units. Rents in council-managed properties will be capped at €825 monthly for two-bedroom flats and €1,000 for three-bedroom ones, with the council handling allocation criteria and guaranteeing rent payments. Units managed by the concessionaire will operate at market rates, allowing firms to propose taking on 30% or 50% of the properties.

A viability study included with the tender details four scenarios over the maximum 50-year concession period, after which the building reverts to council ownership. Construction costs are put at €9.57 million, slightly below the €9.9 million estimated previously. Projected concessionaire profits range from €19.7 million—under a scenario with €30,000 annual council contributions (adjusted by IPC) and 10% lower rents—to €28.9 million with 30% market-rate units. All options allow the firm to recoup its investment with a surplus.

Torrent noted that recent discussions with interested companies helped refine the terms for greater legal and financial security. "We've sought a balance that makes the project viable without passing undue risks to the administration," he said.

The initiative forms part of the "Recuperem espais públics" programme, alongside projects like the CanRodes car park on Antic Camí Ral and the Reviu scheme with 19 flats. Companies have until 27 March 2026 to submit bids.