Is it profitable to buy real estate in the Principality of Andorra?
Updated: Aug 30, 2021
When people hear about moving to this small country, the first thing they say is that real estate here is worth fabulous money. Is it so?
Of course, it depends on what to compare to. Firstly, it should be noted that housing in Andorra is not only a good purchase but also a smart investment. The fact is that due to the small amount of territory and the possibility of strict control of construction companies, the further development of the principality is very moderate and an enterprise, in principle, close to the final. Because of this, over the years, real estate prices have only been growing here and there is not a single prerequisite for this trend to somehow change.
Secondly, due to the not too large number of the real estate, it is in demand among tourists and people who come here on business trips. This means that it makes sense to buy a home for rent — permanent or seasonal. The apartment will bring its own stable income and, perhaps, even repulse itself in a few years.
What is the price for renting real estate in the principality of Andorra
As for the cost, let's talk about renting a home first.
To understand the logic of pricing, it is worthwhile to understand that the area is divided into several districts. The most prestigious properties are located in the capital of Andorra la Vella or course. You will also find luxury deals in Ordino and Encamp. Housing prices in Canillo are more moderate. Renting an apartment per day here will cost about 60-90 euros per day on average. You can find cheaper, or you can find more expensive, of course.
If you want to rent tourist accommodation in the mountains, then it will cost you twice as much.
Now let's go over the point by type of real estate and the cost of their rent per month:
Apartment (1 bedroom) in the city center — 700-900 euros per month
Apartments (1 bedroom) outside the city center — 500-650 euros per month
Apartments (3 bedrooms) in the city center — 1 300-1 500 euros per month
Apartments (3 bedrooms) outside the city center — 900-1 200 euros per month
We can say that these prices are average European, slightly closer to the large cities. In many cities of Europe, North America, and the CIS countries (in the same Moscow), housing prices are often even higher.
What is the price of real estate in the principality of Andorra
We can immediately say that it is comparable to the rental price and does not exceed the average European prices. However, it should be noted that the investment value of this housing, for the above reasons, is much higher.
So, the price for an apartment of 60 square meters in the city center, or not far from a ski resort, will cost the buyer 120,000 - 200,000 euros and more. Closer to the residential areas, this figure may decrease. A luxurious, modern cottage in Andorra costs about 1,000,000 -10,000,000 euros.
As for specifics, the price per 1 square meter when buying an apartment in the city center will be about 4 000 euros, outside the center — 2 500 – 3 500 euros. In tourist destinations, the price can be very different depending on the location and other factors.
At the same time, you can find here much cheaper options far from cities, or just on their outskirts, including apartments and cottages. Prices for them can range from 15,000 euros, depending on the area and condition.
The mortgage rate here is 3%. A small percentage that makes it possible to buy an apartment here with its subsequent delivery and redemption.
It is also worth noting that you can get a residence permit in Andorra by investing 400,000 euros in the country's economy, which includes the purchase of the real estate. This practically guarantees your subsequent citizenship.
If you have any questions regarding the purchase or rental of real estate in the Principality of Andorra, how best to arrange this, or how to make the most profitable and find the most suitable housing for your purposes, then be sure to write to us and ask all your questions.