The real estate market in Andorra
If you are interested in real estate investment in Andorra, it could be said that in the last decade the market suffered a drop in the price of their homes. This is due to the high demand of Spanish and French buyers that existed at the beginning of the year 2000, in which a second residence was sought near the ski resorts.
In 2008 it reached the highest prices, and after this date the real estate market began to fall until about three years ago, which has begun to rise again. For this reason it is now the best time to invest, as it is expected to increase. So now the interest rates are more affordable.
Is Andorra a good place for real estate investment ?
For a long time, Andorra has been a preferred destination by many tourists worldwide for its landscapes, its winter sports, shopping of best brands, among others. Because this country has many things to offer in an economic, cultural, social and fiscal level.
With the economic reforms that were carried out in 2012, the country has diversified its resources, and opened channels for international trade. That led in the last years to a vertiginous increase in the arrival of new investors.
And the real estate market has not escaped this investment boom; Andorra is offering properties accordingly with the expansion and economic and demographic growth of the Principality. Investments in this sector range nowadays from 500,000 euros to 1.5 million euros. Which is understandable, taking into account that the country’s regulations establish a necessary investment of at least € 350,000 to obtain the passive residence.
This country also ranks in one of the best positions in the world in terms of income per capita, and therefore, in life quality too. This greatly benefits anyone who wants to establish their residence in Andorra.
Real estate market in Andorra: buy or rent?
If you are thinking of applying for the passive residence, the time is now, as the Andorran government demands to invest 350,000 euros in Andorran assets. The purchase of a property would be the best investment at this moment, since it is the right time to invest in real estate instead of renting. The real estate market, specifically the purchase of properties, is a safe option for investment in the country. Since it allows investors to obtain a certain return without having to put their capital at risk.
In the case of those who are going to ask for an active residence, which are the investors who want to create a company in Andorra, they are in the same position. It is the best time now to buy and invest in real estate, also taking into account the current interest rates. So again it is still more convenient to buy than to rent
Currently, not only real estate prices in Andorra are very seductive; but also the expenses involved in a purchase, such as notary fees, commissions, taxes, etc., being cheaper compared with Spain and France.
On the other hand, rents in the real estate market fluctuate in general among young Andorrans who get emancipated while they save money. And also by foreigners looking to spend a season in Andorra, usually on vacation.
