Andorra Housing Group Threatens 2026 Protests Over Rental Unfreeze

The Coordinadora per l’Habitatge Digne has warned the government it will intensify pressure in 2026 if its roadmap for unfreezing rental contracts fails to incorporate key proposals ahead of the 2027 deadline. The group demands a regulated market featuring indefinite contracts as the norm, a reference price index to identify abusive rents, impartial mediation mechanisms, collective bargaining options, controls on rent hikes, a ban on evictions without alternatives, an end to the "child trap" loophole, and limits on overcrowding in tourist flats via occupancy caps in habitability certificates. It also calls for adapting Switzerland’s rental model to Andorra, with temporary contracts limited to justified cases like the floating population. These "non-negotiable" measures, developed over two years with public input, aim to prevent mass tenant vulnerability when extensions imposed since 2019 expire. Ignoring them would signal bad-faith dialogue, the group said, prompting mobilisations exceeding those of 2023. It plans to relaunch soon as the Sindicat d’Habitatge d’Andorra to build parish-level organisation, support, and advocacy against speculators.

Government officials outlined a contrasting gradual unfreezing plan during their Christmas media briefing. Head of Government Xavier Espot and Housing Minister Conxita Marsol said a bill will enter parliament before year-end, with implementation starting 1 January 2027 for the oldest contracts—those signed by 2012 or earlier. Subsequent ones face mandatory extensions of 1-5 years without agreement: 2013-14 until 2028; 2015-16 to 2029; 2017-18 to 2030; 2019-20 to 2031; and 2021 to 2032. Rent reviews during extensions are capped at IPC inflation if originally agreed.

For new five-year contracts, hikes are tiered by current price per square metre and spread annually plus IPC: up to 25% total (5% yearly) for ≤€8/m²; 20% (4%) for €8-9; 10% (2%) for €9-10; 5% (1%) for €10-12; and IPC only above €12. Limits apply equally to renewals or new tenants to deter evictions for higher rents. Exclusions cover luxury units (>150m² or >€2,500/month), family homes, major renovations, or passive residents. The approach prioritises simplicity for small landlords, avoids geographic caps, and provides a year’s notice for tenants to explore affordable public rentals or first-home schemes. Espot stressed indefinite intervention stifles supply, while Marsol noted details remain under review amid parliamentary talks, with potential tweaks like shortening to three years.

The Unió Sindical d’Andorra (USdA) criticised the plan as exacerbating a structural housing crisis, citing a mismatch between 25% rent rises and 6% minimum wage growth, plus private-sector wage stagnation versus public protections. It warned of purchasing power loss, talent flight, pensioner exodus, and social fracture, demanding IPC-linked salary updates and unfreezing suspension.

Public affordable housing shows high demand: 44 applications for 22 units at former Hotel Hermus in Encamp (45-65m², 12 one-bedroom, 8 two-bedroom). Arinsal’s 70 units launch soon; unfilled spots may go temporarily to needed professionals like doctors before sale options. Over 200 await on the registry. Housing sent 300 letters to empty flat owners (1,800 total planned), urging rentals or sales under omnibus law penalties; responses are incoming, with analysis in 3-4 months.

Social services tightened rental aid rules: rent must exceed 30% of household income; no family member owns property; updated income caps apply. Exceptions aid gender violence victims or protected minors via court orders, even if not contract holders. From January-November, 1,838 grants totalled €4.38 million; ~10% current recipients may shift to other aid. Applications are open year-round via e-portal, with January-March 2026 entries retroactive to 1 January.