Andorra Defends Rental Market Liberalisation as Boost to Gender Equality

The Andorran government has defended its plan to gradually liberalise the rental market by arguing it could benefit gender equality. Housing Minister Conxita Marsol states in the explanatory memorandum accompanying the draft law that introducing freedom of contract terms may have a positive effect on gender issues.

The document, submitted to the Consell General for approval, highlights how rental relationships are influenced by gender stereotypes that can lead to prohibited discrimination under laws on urban leasing, equal treatment, and effective equality between women and men. It notes that the gender pay gap hinders women's independent access to housing.

A freer market, the memorandum argues, would boost supply through greater legal certainty and trust, ultimately lowering rents and making homes more accessible to women. This claim is likely to spark debate.

The liberalisation process unfreezes rental contracts progressively. For those renewed in 2027 via a new agreement, rent increases will be capped at 2.5% in the first year, even if the consumer price index (IPC) is higher—a safeguard against potential inflation spikes from Middle East tensions. This cap does not apply to tacit or legal extensions, which can use the full IPC from 2026, or to contracts unfrozen later (2028-2030).

Implementation costs are estimated as modest. The government forecasts €10,000 to upgrade the SICAR software system for managing rental contracts, plus €13,526.52 for a new technical position in the Housing Department in 2026. Officials say the changes will neither significantly affect state revenues nor expenses, though the impact on real estate transfer tax collections remains unclear due to incomplete data on prior rentals converted to owner-occupied homes.