Andorran Landlords Slam Rental Law Draft as Hidden Rent Control Extension

The Andorran Association of Real Estate Owners (APBI) has issued a scathing critique of the government's draft law on residential rental regulations for 2027-2032, calling it a "hidden prolongation" of existing controls rather than true market liberalisation.

In a statement released this week, the APBI warned that the proposal fails to tackle structural shortages caused by demographic growth—over 2,000 new residents last year without proportional increases in rental supply. This mismatch, they argue, creates scarcity, waiting lists, and price tensions that rent caps alone cannot resolve. Around 80% of active contracts charge €500-€1,000 monthly (€6-10 per square metre), well below portal listings that reflect only newer or renovated units.

The group described planned rent increases as "extremely limited, gradual, and conditional," ignoring rises in maintenance, utilities, insurance, and energy efficiency costs. Such restrictions erode profitability, deter renovations, and encourage small landlords to pull properties from the market or repurpose them. This risks a bifurcated market: low-rent legacy units with low turnover versus high prices for newcomers, compounded by foreign investment in luxury rentals.

APBI rejected placing primary responsibility for vulnerable tenants on landlords, urging state-funded aid and shared societal policies instead. They demanded a full review and delay of approval to build a balanced, sustainable market.

The draft, leaked this week, has prompted urgent action. Housing Minister Conxita Marsol convened the Economic and Social Council (CES) for Monday to present it, accelerating the process amid tensions. The text outlines gradual "thawing" from January 2027, tying extensions and hikes to contract dates and rents per square metre, plus IPC inflation.

Pre-2013 contracts would lack automatic renewal. Those from 2013-2021 face phased extensions to 2028-2032, with caps like 25% total (5% annual plus IPC) for rents ≤€8/m², down to IPC-only for ≥€12/m². Exemptions apply to high-end units (>€2,500/month), chalets, passive residents, or those needing major reforms. The cabinet plans extraordinary approval next week before parliamentary review, where pro-landlord groups may push amendments. CES input is advisory only.