Andorra Rent Gap Hits €550 as New Leases Average €1,332 vs €785 Old

The latest data from Andorra's Housing Observatory, showing an average monthly rent gap of €550 between new and longstanding leases, has come as no surprise to property owners.

Jordi Marticella, president of the Property Owners' Association (APBI), said the figures align with trends the group has tracked for years. New contracts signed over the past year average €1,332 per month, compared to €785 for homes rented for a decade or more. "These numbers reflect a reality we've observed for some time," Marticella noted, adding that most longstanding rentals—those over five or six years old—fall between €500 and €1,000 monthly, capturing the bulk of the market.

He emphasised that online property portals do not capture the full picture. Many flats change hands through word-of-mouth or personal networks, often before listings go live. These deals typically fetch prices slightly higher than old contracts but close to advertised rates. Initial asking prices on portals, Marticella explained, frequently lead to final agreements at lower amounts.

The APBI leader dismissed notions of drastic rent hikes upon tenant turnover. A property leased at €1,000 might rise by €100-150, he said, rather than jumping to €2,000.

Access remains a key challenge, particularly for newcomers or single occupants lacking connections. "Without contacts, it's hard to reach flats rented directly between acquaintances that never hit the open market," Marticella stated. He highlighted a broader supply shortage, with demand outpacing Andorra's capacity to accommodate new arrivals. While €1,000 monthly strains solo renters, shared housing makes it more manageable. Ultimately, he stressed, insufficient supply—not just price—drives the issue.