Housing Minister Defends Andorra Rent Unfreezing Bill Amid Debate

**Housing Minister Conxita Marsol Defends Rent Unfreezing Bill Ahead of Parliamentary Debate**

Housing Minister Conxita Marsol has defended the government's rent unfreezing legislation ahead of its debate in the Consell General this week, indicating only minor changes despite pushback from landlords and unions. In appearances on Diari TV's *Parlem-ne*, RTVA's *Avui serà un bon dia* and Ràdio Nacional, she described the bill—finalised after summer talks with Demòcrates and Ciutadans Compromesos—as mostly set, allowing tweaks for high rents near €7 per square metre but no sweeping alterations, even amid potential protests.

The June-introduced measure covers roughly 7,000 legacy contracts, permitting initial rises limited to 6% plus 2.5% IPC. Over five years, annual adjustments follow parish reference rates: IPC plus 6% for rents at or below €7/m² in parishes like Canillo (€7.95/m²), Ordino (€8.81/m²) and Encamp (€9.47/m²), easing to IPC plus 1% for pricier units. Most contracts align with market rates within four years, with limited extensions. Exemptions apply to luxury rentals above €2,500 monthly, single-family homes, post-2022 agreements and properties reclaimed for family or staff use.

Marsol expects restrained increases, as many landlords value stable tenants. She stressed enforcement against abuses, confirming a nearly €100,000 fine—double the property's capital gain—on a landlord who claimed the flat was for his son or another relative before selling it. Additional penalties of €2,000 to €4,000 have hit other violators, triggered by tenant complaints. The government will monitor excesses via the Sicar database, where renters can verify past rents, and step up inspections if needed. Marsol assured controls would prevent unchecked hikes post-2027.

APBI president Jordi Marticella labelled the bill "deeply disappointing," saying it offloads social duties onto owners facing inflation on heating, upkeep and loans without matching aid. He challenged the 2.5% IPC ceiling as precedent-setting and unfair, advocating state-led public housing growth over owner burdens. While dismissing "speculator" tags, he foresaw no wild surges, with many landlords choosing modest rises or caps to retain tenants, and called for year-end IPC checks. Without viable returns amid shortages, he cautioned, owners may quit rentals.

Unió Sindical d’Andorra (USdA) flagged misleading ads suggesting indefinite caps, noting contracts will shift to market rates with risks of steep jumps from low baselines. It urged open parliamentary discussion of liberalisation's effects.

Marsol highlighted €30 million from next year's €60 million surplus for 200 public units in three advanced buildings, ready after electrical upgrades, efficient glazing and fixes for occupancy in two to three months, including possible senior cohousing. A tender seeks low-renovation vacancies, offering tax relief, IGI waivers on supplies or added storeys sans basement parking, if community-approved within the bill's three-month period.

The minister anticipates manageable impacts, prioritising retirees for public housing despite family affordability strains, and suggested 2023 as an optimal unfreezing point after seven years of caps.