In recent times, Andorra has experienced a notable increase in real estate prices, both in the residential and commercial sectors. While prices per square metre for luxury apartments are soaring to €10,000, rentals and sales of commercial premises have also reached record figures. In this article, we will analyse these two phenomena and the possible reasons for this in the Andorran real estate market.
Record prices for luxury apartments:
According to a recent article, the price per square metre for luxury apartments in Andorra has reached impressive figures, exceeding €10,000 in some exclusive areas. This increase is directly related to the growing demand for high-end properties by foreign buyers, attracted by the quality of life and favourable taxation in the country. This phenomenon is transforming the Andorran real estate market and consolidating the country as a luxury destination.
The commercial premises market also at record prices:
Similarly, the sale and rental prices of commercial premises in the principality are reaching historic prices. Some companies are looking to set up in strategic locations, which has been able to boost both rental and purchase prices.
Common factors
The increase in prices for both commercial premises and luxury apartments is not a coincidence. Both sectors are being driven by similar factors:
- Economic stability of Andorra
- Tax advantages
- High international demand.
In addition, the tourist appeal of the country, which remains a sought-after destination, with a constant flow of people interested in investing in property.
Impact on the local real estate market
While it could be positive for investors and property owners, it also poses challenges for local residents who may be excluded from accessing luxury properties or commercial premises at reasonable prices. This situation could generate a mismatch in supply and demand, especially affecting small businesses and families looking for more affordable housing.
Conclusion:
Andorra’s real estate market is experiencing an unprecedented period of growth. Rising prices reflect a booming economy and an increasingly attractive market for investors. However, it will be important to observe how this dynamism affects local residents’ access to housing and businesses in the long term, as well as the balance between economic development and social sustainability.
What do you think about the real estate market in Andorra? Do you think this will have a long-term impact on the economy? Leave us your comment!
