Andorran Landlords Ramp Up Evictions and Rent Hikes Ahead of 2027 Deregulation

Andorran landlords continue to notify tenants of contract terminations and rent hikes of €300 or more ahead of a proposed housing law's deregulation, even as the Institut de l'Habitatge fields rising inquiries from both renters and owners seeking clarity on changes expected from January 1, 2027.

Tenants with contracts under mandatory extensions report receiving formal notices that leases will end upon expiry—often in about a year—followed by verbal offers to renew at rates jumping from €700 to €1,200 monthly, exceeding 40% in some instances. One renter described the pressure: facing eviction in a strained market or accepting the increase now, alongside costs for deposits, agency fees, and moving. A separate case highlights harsher outcomes: a tenant who accepted a rent rise in early 2025 for building improvements was still evicted this year without stated justification, despite protections under the 2023 Law on Measures to Stimulate and Stabilise the Rental Market. The notice cited tacit annual renewals since the original 2017 contract's 2022 expiry, setting an "irrevocable" end in 2026, bypassing grounds like personal use or major works.

The Institut de l'Habitatge (INH) director, Marta Alberch, confirmed a surge in general queries about the "thaw" of frozen rents as law details emerge, though no approved text exists. The agency has not detected a spike in termination notices or proposals, treating cases routinely by checking legal compliance. Landlords may propose changes—capped at 10% under current rules—but tenants can refuse, securing extensions to 2027 with proper notice and a new five-year deal required. Valid exceptions include reclaiming properties for owners or direct family.

Critics from the Housing Union (SHA), Concòrdia, and the Partit Socialdemòcrata contend the draft unduly favours landlords, permitting 1-6% annual rises plus IPC over five years based on current per-square-metre rates, with one to three extra years of extensions for post-2012 contracts, but lacking enforcement. Affordable housing applications hold steady at around 50 monthly, topping 1,000 total, with Alberch anticipating shifts based on final rules. Current allocations include 24 units in Arinsal's Ribasol complex, with deadlines looming; broader public stock will reach nearly 500 units by 2027 across sites like Aixovall, Ordino, and Andorra la Vella. Authorities have not addressed the preemptive actions directly.