Andorra Housing Group Threatens Protests Over Rental Unfreeze Lacking Caps

The Coordinadora per l’Habitatge Digne has warned of escalated protests if the government’s rental unfreeze plan, set to begin in January 2027, fails to incorporate demands for rent caps, indefinite contracts, a reference price index, neutral mediation, collective bargaining, eviction protections, closure of the “child trap” loophole, and limits on tourist rentals via habitability certificates. Citing two years of consultations and models like Switzerland’s restrictions on temporary contracts, the group plans to relaunch as the Sindicat d’Habitatge d’Andorra with parish branches to mobilise against speculators, arguing rejection would shatter trust and exceed 2023 demonstrations.

Leaked drafts of the bill, shared with parliamentary allies and now public via media reports, outline a phased approach through 2032. Contracts signed in 2012 or earlier will end mandatory extensions from 1 January 2027, permitting free termination or renewal. Later contracts gain automatic extensions without agreement: 2013-2014 to 2028; 2015-2016 to 2029; 2017-2018 to 2030; 2019-2020 to 2031; 2021 to 2032. Rent adjustments in these periods are capped at IPC if originally agreed.

For five-year renewals or new contracts—same or different tenants—increases are tiered by current price per square metre, spread over five years plus IPC: ≤€8/m² up to 25% total (5% annually); €8-9/m² at 20% (4%); €9-10/m² at 10% (2%); €10-12/m² at 5% (1%); >€12/m² only IPC. Caps apply equally to retain tenants and curb evictions for hikes. Exclusions cover luxury units (>150m² or >€2,500/month excluding parking/utilities), single-family homes, major safety/hygiene works, passive residents, or properties sold for owner/family occupancy. A rental registry, inspection service, and penalties are also proposed. About 4,000 contracts hover at or below €8/m².

Leaks have heightened tensions between Housing Minister Conxita Marsol’s team and the Democratic parliamentary group plus majority supporters, prompting a rushed final version for Council of Ministers approval next Tuesday. Initial parameters are under revision; discussions may shorten the timeline to three years, ending in 2029. At a Christmas briefing, Head of Government Xavier Espot and Marsol stressed year-end finalisation for one year’s notice, urging tenants toward public housing or grants. Espot noted prolonged controls stifle supply; Marsol cited 300 letters to vacant owners, with 1,800 more planned, plus penalties and results in 3-4 months.

Unió Sindical d’Andorra (USdA) rejects the plan outright, warning it deepens the crisis amid 25% rent hikes against 6% minimum wage rises and private-sector stagnation, eroding purchasing power, driving out talent and retirees, and widening inequality. It demands IPC-linked wages and a full halt.

The Associació de Propietaris de Béns Immobles d’Andorra (APBI) calls the draft a “covert extension” of controls, not true deregulation, ignoring root causes like 2,000+ new residents last year against static supply. Most contracts fall at €500-1,000 monthly (6-10€/m²), far below new listings; limited hikes overlook rising costs, risking maintenance cuts, investor exit, and stock contraction. The APBI urges delaying approval for deeper review and state aid for vulnerables over landlord burdens.

Public housing queues continue: 44 bids for 22 Encamp units (ex-Hotel Hermus, 45-65m²: 12 one-bed, 8 two-bed); 70 advancing in Arinsal; Font de Ferro pending. Over 200 on national lists; extras may house professionals like doctors short-term. Rental aid criteria tightened: rent >30% income, no ownership, size limits; exceptions for violence victims or minors. January-November saw 1,838 grants totalling €4.38 million; ~10% could redirect. Parish initiatives lag: Encamp approved one €2,994 aid from five (two rejected, two pending); two intergenerational shares; others stalled despite national support.