Andorran property owners demand immediate end to rent freeze

**Andorran property owners demand immediate end to rent freeze as government advances gradual thaw**

The Andorran Association of Property Owners (APBI) has rejected the government's latest proposal for unfreezing rental contracts, calling for an immediate lift of controls after years of interventions. APBI president Jordi Marticella stated that the plan, presented at a recent meeting with members and non-members, "did not fully convince" participants. Speaking at a breakfast event hosted by the Andorran Family Business Association (EFA), he urged swift action: "Given the years of interventions and freezes, our goal is to deregulate as quickly as possible—and that means now."

Owners proposed refinements, including fiscal incentives, support for building rehabilitations, better rent management, and a faster thaw timeline. Marticella dismissed tenant union and USdA warnings of uncontrolled hikes, noting increases are optional and spread over time. APBI calculations suggest a maximum rise of €200 over five years in the worst case, affecting mostly rents between €500 and €1,000 monthly—some large flats with parking below €500. He argued current low rents are unsustainable for owners facing maintenance costs and blamed interventions for market imbalances, including stagnant turnover and higher prices in unregulated new leases driven by greed and legal uncertainty.

The government's bill, titled "approval of the legal regime for habitual residence rental contracts for 2027-30," outlines a four-year phased deregulation starting in 2027. Contracts from 2012 or earlier, or below €6 per square metre, thaw first; 2013-2015 or under €7 in 2028; 2016-2018 or under €8 in 2029; and 2019-2021 in 2030. Post-thaw, owners can opt for progressive hikes above IPC inflation: up to 6% + IPC for €6-7/m² rents, tapering to 1% + IPC above €12/m², over five years. Rents below parish public housing benchmarks can rise proportionally over three years to match. Violations face 50% annual rent fines plus tenant compensation. New features include six months' notice for terminations—extended from three—and exceptions for sales, family use, or tenant non-renewal.

The draft reached the Economic and Social Council (CES) this week, drawing sharp divides. USdA secretary general Gabriel Ubach called it a betrayal, announcing protests, signature drives, and demands for early elections, claiming it prices out workers, youth, and retirees. SEP's Sergi Esteves criticised the lack of broader caps tied to public housing prices and structural fixes. The Andorran Business Confederation (CEA) praised the balance but sought higher hikes (up to 8% + IPC) and faster adjustments for low rents.

Housing Minister Conxita Marsol defended the "progressive and protective" approach as serving the general interest, noting hikes align with public housing rates and protect sitting tenants. She announced using 2025 budget surplus for public tenders to buy buildings, aiming for 500 public rentals by 2027's end—potentially 150 more—plus a non-payment guarantee fund, affordable rent incentives, and compensation for "family trap" evictions.

Queries to the Housing Institute have risen amid uncertainty, though no surge in pre-2027 terminations. Public housing applications hold steady at around 50 monthly, with ongoing allocations like Arinsal's 24 flats.