Andorra Allocates €30M Surplus to Buy 200 Affordable Apartments
Government shifts from rentals to purchasing three buildings for public housing, including below-market sales and senior cohousing, while advancing.
Key Points
- €30M from €60M surplus to buy three buildings with ~200 apartments for affordable ownership.
- One building for below-market sales; another potential senior cohousing project.
- Rent liberalisation from June: 6% + 2.5% IPC hikes on 7,000 frozen contracts; Sicar system for tenant checks.
- Tax rebates, IGI exemptions, extra storeys to boost private rentals; minimal changes expected to rent bill.
The Andorran government will use €30 million from its €60 million 2025 budget surplus to buy three buildings with around 200 apartments, expanding the public housing stock with a focus on affordable ownership. Housing Minister Conxita Marsol said one building will offer units for sale below market prices, while another could become a cohousing project for seniors.
Marsol outlined the plan during appearances on Diari TV's *Parlem-ne* and Ràdio Nacional d'Andorra's *Avui serà un bon dia*. The targeted properties—due on the market next year—must need only minor work like electrical upgrades, window replacements for energy efficiency, and small fixes to become habitable in two or three months. A tender for owners is in preparation, avoiding major overhauls such as converting hotels.
"Purchase will be the priority, with rentals considered secondarily if offers arise," Marsol stated, noting interest from owners of vacant buildings. This marks a pivot from rentals, where nearly 500 public flats remain under construction for allocation by the end of the term.
To support private rentals, the government is drafting laws or regulations—requiring comú approval—offering tax rebates for developers, IGI exemptions on materials, and extra storeys in zones without underground parking. These should finalise within three months, alongside a rent liberalisation law taking effect in June. It will allow 6% hikes plus up to 2.5% IPC on about 7,000 frozen contracts. Marsol expects modest effects, as many landlords with long-term tenants may limit increases. "Some have tenants for many years who pay on time, so it suits them," she said.
The Sicar system will let tenants check prior rents and report excesses, whether from new or renewing landlords.
On the rent bill entering parliamentary debate this week, Marsol indicated few changes ahead, as it has been finalised with the government majority—Demòcrates and Ciutadans Compromesos—limiting opposition amendments.
Other pending reforms include a law on inactive companies, administrative managers to tackle ghost agencies and temporary work firms, and further rental incentives before 2027.
Original Sources
This article was aggregated from the following Catalan-language sources: