Andorran Real Estate Leader Urges Gradual Rental Market Deregulation

Gerard Casellas, president of the Andorran Association of Real Estate Agents and Managers (AGIA), has called for a gradual reduction in government intervention in the rental market over the next three to four years, warning that full liberalisation would be unfeasible.

Speaking after the presentation of a sector analysis, Casellas noted that the government has begun consultations with stakeholders this week on potential deregulation, particularly ahead of planned rent price thawing from 2027. He predicted the executive would introduce controls to allow the market to gradually absorb price increases. "Thinking that someone who owns a property cannot sell it when they need to is not positive," he said, adding that the process should not exceed three or four years to avoid risks.

This comes amid severe strain in Andorra's rental sector. Data from academic Lluís Albert Fabra shows only 165 active rental listings nationwide at year-end, down 37.7% from prior levels, with over 90% of demand shifting to purchases and intensifying pressure on rentals.

Casellas also expressed scepticism about the government's revamped first-home purchase support programme, which offers guarantees but requires long-term commitments, often in couples. He described its impact as limited, saying it might help isolated cases but would not prove decisive. Conversations with young people revealed reluctance to tie themselves down for extended periods, especially as singles cannot afford the monthly payments alone. Real estate agencies have seen no notable uptick in interest or transactions as a result.

Despite current buoyancy—with rising activity and operation volumes—Casellas cautioned that cycles shift unpredictably. The sector endured the 2008 crisis well after years of growth, he recalled, but preparation for downturns typically begins only when activity slows and prices stagnate.