Introduction to the Real Estate Market in Andorra and the Arrival of Residents
The real estate market in Andorra is experiencing increased pressure due to the continuous arrival of new residents. According to official data published by Statistics, the country reached 87,899 residents as of March 31, 2025, representing a 3.3% increase in one year. This accelerated growth is primarily driven by a notable 21.9% rise in the issuance of residence and work permits.
Pressure on the Real Estate Market in Andorra
The steady influx of new residents, especially those linked to the service and hospitality sectors, contributes to significant tension in the housing market in Andorra. Rental prices continue to hit historic highs, posing challenges for those seeking to establish themselves in the country.
The average rent for apartments was 3,117.82 euros during the second quarter of 2025, reflecting a 6.4% increase compared to 2,929.75 euros in the first quarter, according to Pisos.ad, confirming that this is the highest figure recorded to date.
Over the past three years, demographic growth has been 10%, with nearly 8,000 new residents. This pace is considered by various political and social actors as “unsustainable” given the country’s size, social services, and infrastructure.
Factors Driving the Real Estate Market in Andorra
- Increase in residents linked to the service and hospitality sectors.
- High demand in the rental market.
- Limitations in the availability of housing.
Demographic Growth by Parish and Nationalities
Population growth is mainly concentrated in the parishes of Andorra la Vella (+416 residents), Canillo (+347 residents, +6.0%), and Encamp (+300 residents), followed by Escaldes-Engordany, La Massana, and Ordino. Sant Julià de Lòria has the lowest growth (+151 residents, +1.5%).
Regarding nationalities, the group of “other nationalities” increased by 8% (+1,114 people), highlighting the growth of Colombians (+330 residents, +28.3%), Peruvians (+187, +26.7%), and Argentinians (+177, +5.9%).
Residents of Spanish nationality increased by 363 people (+1.8%), Andorrans by 346 (+0.9%), and French by 194 (+5.1%), while the Portuguese population decreased by 142 people (-1.6%).
Impact on the Use of Catalan in the Labor Market
The strong immigration, especially from Castilian, Portuguese, and Argentine origins, is impacting the social use of Catalan in Andorra. Although Catalan is the official language of the Principality, various reports indicate that in many private sectors, particularly in commerce and hospitality, Catalan is being relegated in favor of other languages in customer service and internal communications.
This phenomenon is reinforced by the increase in work permits in sectors like services, dining, sales, and unskilled jobs, which are the groups growing most in authorizations.
Data on Residence and Work Permits in Andorra
According to Statistics, active residence and work authorizations increased from 40,870 to 42,162 in one year, representing a 3.2% increase. Additionally, exclusive residence permits grew by 2.3%, reaching 9,896.
There was also an increase of 5,091 temporary work permits (winter quotas), up 8.2% compared to the previous year, along with sustained growth in work permits without residence (+37.9%) and border work permits, which reached 1,874 (+2.5%).
Conclusion on the Real Estate Market in Andorra and the Arrival of Residents
The real estate market in Andorra is currently under significant pressure due to the continuous arrival of residents, especially those linked to the service and hospitality sectors. This demographic and laboral increase is causing a notable rise in rental prices, posing important challenges for urban management, social services, and quality of life in the country.
If you are interested in living in Andorra, it is essential to inform yourself about the real estate market, residence and work permits, as well as the quality of life the country offers. At Andorraway, you can find useful information about living in Andorra, residency in Andorra, and cost of living in Andorra.