Andorra’s property market continues to grow apace
23/03/2016
According to a recent statement made by Antònia Sevé, president of the AGIA, to national press, the housing market has kept up with the level of growth in 2015, with a strong emphasis on the luxury sector.
Property sales in Andorra for the first quarter are showing an upward trend of between 4.5% and 5%, according to a recent statement made by the president of the AGIA (the Professional Estate Agent Association of Andorra).
Antònia Sevé identified the Euribor 0% rate as one of the incentives for this growth, although she also cited the lack of new builds as a negative factor.
In order to encourage and strengthen the real estate market in the Principality of Andorra, the president made a firm commitment to the luxury market, since the current high levels of demand are not being covered. She stated, “If the new builds are luxury apartments, we might be able to attract more taxpaying residents”.
A different type of luxury in Andorra
Sevé suggested that the type of luxury property sought in the Principality of Andorra has nothing to do with large plots of land or impressive chalets, but instead focuses on older buildings with cultural heritage, such as renovated huts, large flats close to the ski slopes in skiable areas, or property with added services in the community or building, such as fitness areas.
A need for larger flats to rent
The AGIA president had already discussed rental trends in previous interviews, which are more static transaction with less growth in comparison to buying and selling real estate. She mentioned the following example, “People are looking for three- or four-bedroom apartments in central Andorra, which we don’t have right now… people used to rent in the upper parishes because it was cheaper, but during the financial crisis families had less spending power, and having to go back and forth every day is a cost that was not compensated by lower rent prices”. This has led to a greater demand for rental apartments in more central parishes, and right now this need is not being met. Antònia Sevé continued, “we encourage developers to build three- and four-bedroom flats.”
F. Diari d’Andorra, Eloi Tost
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Andorra Sotheby’s International Realty Av. Joan Martí, 102 – AD200 Encamp – Tel. + 376 872 222 – Fax: + 376 872 223 – info@sir.ad