Andorra Delays Rental Defrost Law to Q1 2026 for Broader Consultations

The Andorran government has delayed presentation of its rental defrost law until the first quarter of 2026, citing the need for wider consultations with tenants, landlords, unions, employers, opposition parties, and civil society groups to produce a balanced, executable proposal.

Minister Spokesperson Guillem Casal outlined the change during a press conference after Tuesday's Council of Ministers meeting. He said the executive reviewed initial information and chose to expand feedback after the Christmas holidays, avoiding rushed decisions ahead of the 2027 rent unfreeze. "We have a year's margin, and haste is never a good advisor," Casal noted, stressing the shift to a "new paradigm" after repeated extensions. The draft, previously shared only with majority parliamentary groups, will now include opposition input to better gauge impacts and limit parliamentary amendments. No firm presentation date exists within the quarter, but the goal is a text acceptable across sectors.

The postponement follows a leaked draft last week, which envisioned phased unfreezing—ending extensions in 2027 for pre-2013 contracts, with up to five-year grace periods for newer ones. Rent hikes would be capped at 25% for units under €8 per square meter, spread over five years; 5-20% for higher rates; and IPC-linked for extensions. Exclusions applied to properties over 150 square meters or €2,500 monthly rent.

Tuesday's Consell Econòmic i Social (CES) meeting, originally slated to review the draft, was rescheduled at the government's request. Unions (USdA, SEP) and employers (CEA) sought better data on minimum-wage earners and vacant units. CES head Conxita Marsol committed to providing the draft and figures by January, allowing one month for responses. CEA president Gerard Cadena welcomed the pause for analysis.

Criticism persists. USdA treasurer Joan Torra called it a "failure," blaming government housing policies for population growth without solutions and risking housing rights; he reiterated calls for resignations. The Associació de Propietaris de Béns Immobles (APBI) faulted the approach for overlooking supply shortages and foreign investment not meeting local needs.

Opposition intensified: Concòrdia's Cerni Escalé dubbed it a "comedy" of improvisation enabling speculation; PS deputy Pere Baró labeled it a "fiasco" and urged Head of Government Xavier Espot to replace Marsol at Housing; Andorra Endavant's Carine Montaner condemned leaks as "inadmissible" trial balloons, pushing for broad consensus. Opposition groups reported no prior document access, fueling transparency complaints. Majority Democrats, however, supported the delay for refinement.

Rents stay frozen until January 1, 2027, leaving families in limbo amid rising costs and uncertainty.