Andorra Union Warns Against Lifting Rent Caps Amid Housing Crisis

Gabriel Ubach, secretary general of the Unió Sindical (USdA) trade union, has warned against lifting rent caps in Andorra until the broader housing crisis is resolved. He argues that any move toward market deregulation remains premature without first addressing affordability issues, which he attributes to the current government led by Demòcrates and its allies.

Ubach called for a selective approach to rent increases, allowing them only for contracts with "reasonable" pricing, which he defined as eight euros per square metre. Landlords charging above this threshold, he said, should face restrictions on hikes and higher taxes, while those below it could benefit from deregulation. "We can debate whether it's exactly eight euros per square metre or slightly more," he stated, but emphasised the need for a reference price to differentiate fair rentals from excessive ones.

The union leader dismissed a recent proposal from Gerard Caselles, president of the AGIA real estate agents' and managers' association, who suggested completing the deregulation process within three or four years. USdA views this timeline as unacceptable. "Rent caps cannot be lifted until the housing problem is solved," Ubach insisted.

He also criticised the government for holding meetings with other stakeholders while excluding the union, despite earlier assurances of inclusion. Ubach highlighted USdA's prior proposals, including the reference price mechanism, which the government has rejected outright.

Underpinning his stance is a sharp rebuke of Demòcrates, whom he accuses of fostering speculation. "Housing in Andorra has shifted from a fundamental right to a speculative one, thanks to the Demòcrates government and its supporting parties," Ubach said. He charged that their policies have turned the right to housing into "the right to speculation," placing all landlords "in the same bag" regardless of pricing practices.