Central valley dominates Andorra building permits, driving urban densification

Between 2019 and 2024 building authorisations in Andorra concentrated heavily in the central valley. The seven communes authorised 1,591,788 m² of construction in that period; Andorra la Vella and Escaldes‑Engordany together accounted for 964,000 m², or 60.6% of the total. By contrast, during the earlier boom of 2000–2004 a nationwide 1,981,360 m² was authorised, of which only 796,500 m² (40.2%) were in those two parishes.

The shift toward the central valley has accelerated urban densification and taller construction. Escaldes‑Engordany’s share of authorised surface rose from 18.9% in 2000–2004 to 32% in 2019–2024; Andorra la Vella climbed from 21.3% to 28.6%. Other parishes lost or stabilized their relative weight: Canillo fell sharply from 22.9% to 7.0% (a 15.9 percentage‑point drop), La Massana from 13.9% to 9.9%, while Encamp (8.9% to 8.7%), Sant Julià de Lòria (7.5% to 7.4%) and Ordino (6.6% to 6.4%) changed only marginally.

A longer series for 1995–2024 shows two distinct cycles. Authorised surface peaked in 2004 at 605,751 m² (8.6% of the period total) and hit a low in 2014 with 19,892 m² (0.28%). After strong growth through the early 2000s and a marked decline following the 2008 global financial crisis, authorisations began a moderate recovery from 2015. There was a notable jump from 89,032 m² in 2018 to 236,943 m² in 2019, a pandemic‑linked dip to 143,177 m² in 2020, recovery to 215,964 m² in 2021, and subsequent annual rises of roughly 100,000 m² up to 2024.

Two principal factors are cited to explain Canillo’s loss of relative share: a reduced demand for second homes compared with the pre‑2008 period, and the 2023 revision of the urban plan, which in some areas halved developable capacity, concentrated construction in urban nuclei and restricted new building in high‑mountain valleys. The new plan is explicitly intended to steer development toward urban centres and limit expansion in fragile mountain zones.

Administrative registers for 2024 show a modest increase in building stock. The country recorded 10,699 registered edificacions in 2024, a 0.5% rise (54 units) over 2023. Buildings, houses and chalets account for 68.7% of the total. Urbanisations are the most common complex type (1,267 units), followed by residential blocks, pletes and bordes (886 collectively). La Massana (2,111 edificacions), Andorra la Vella (1,915) and Encamp together hold more than half of the country’s buildings (52.0%); Canillo (1,187) and Ordino (1,105) have the fewest.

Housing stock and ancillary facilities have also expanded according to the registers. The country counts 44,047 dwellings, equivalent to 48.4% of the 90,947 domiciliary units registered, and reports 20,220 parking spaces and 12,109 storage rooms within the building stock. All parishes registered growth in dwellings in 2024; Andorra la Vella and Escaldes‑Engordany recorded the largest increases, up by 217 and 62 units respectively. The number of edificacions under construction or renovation rose to 698 units, 157 more than in 2023.

Physical data underline the vertical trend. Buildings whose primary use is housing reach up to 15 storeys above ground, with seven‑storey blocks the most common. Underground levels, typically for parking, rarely exceed ten storeys and a majority of buildings—around 51–52%—have no subterranean floors. The average height for primarily residential buildings is five storeys, with a mode of seven.

Densification brings clear advantages—closer access to infrastructure, services and employment—but also raises challenges: upward pressure on housing prices, reduced availability of affordable homes, and greater demand on public services and urban infrastructure. The 2023 urban‑planning revision aims to manage these effects by channeling new development into urban centres and protecting high‑mountain valleys, a policy response to the centripetal pattern evident in recent authorisations. The towers at Clot d’Emprivat are cited as a paradigm of the recent high‑rise trend in the central valley.