Andorra Unions Slam Rent Unfreezing Plan, Warn of Doubling Costs and Displacement

The Unió Sindical d'Andorra (USdA) and Sindicat de l'Habitatge d'Andorra (SHA) have intensified opposition to the government's planned rent unfreezing from 2027, warning of potential doublings in some rents, family displacements to neighbouring countries, and risks to social cohesion. Both groups demand structural wage reforms, stronger tenant protections, and early elections, while highlighting alignment between housing and labour movements.

In a recent statement, the USdA outlined how the draft law could lead to cumulative increases of up to 94% over three years. For an 80-square-metre flat in Andorra la Vella currently renting at €5.50 per square metre (€440 monthly), costs could rise to €10.70 per square metre (€856), followed by annual IPC adjustments. This would strain minimum-wage earners (net around €1,400), pushing rent from 31% to 61% of income, and pensioners (€900), from 49% to 95%, leaving as little as €44 for other expenses. New leases already exceed €13.50 per square metre, hindering young people's independence, while middle-income Andorran families increasingly relocate to France or Spain amid shared housing trends. With about 25,000 rental contracts and 20,000 on extensions, the union labels the approach rushed liberalisation that overlooks payment capacity.

The USdA calls for legally binding rent caps at 30-35% of household income, IPC-only rises for pensioners, safeguards up to 1.5 times the minimum wage, urgent expansion of public housing beforehand, and mandatory biennial social impact assessments. It views the policy as a housing failure, exacerbated by EU agreement disputes, and urges early elections to restore public trust.

Separate statements emphasise wage inadequacies, with the 2026 minimum wage of €1,525.33—above IPC but insufficient against housing and basics. Parish salary grids, mostly from 2002 despite patchy updates like Escaldes-Engordany's 10% rise or Sant Julià de Lòria's adjustments, fail public workers too. The union seeks "bold structural measures" including real wage hikes, permanent updates tied to living costs, and effective social dialogue to avert residential precarity.

Following its February 28 assembly, the SHA acknowledged the February 18 meeting with Head of Government Xavier Espot and Housing Minister Conxita Marsol but criticised the gradual unfreezing as "politically muted deregulation" favouring large landlords. It questions whether the plan truly protects tenants, corrects market distortions, or prevents a 2027 crisis, rejecting narratives of balanced interests. A detailed response is in preparation after internal review, with plans for parish- and neighbourhood-level mobilisation.

Meanwhile, the Associació de Propietaris de Béns Immobles expressed dissatisfaction at a recent meeting, pushing for immediate unfreezing. President Jordi Marticella noted proposals for fiscal incentives, building rehabilitation support, and faster implementation, estimating maximum hikes of €200 over five years as voluntary and staggered.