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 Andorra Property Market - The Years Ahead
The property market in Andorra has stabilised over the last year following the boom of the previous four years. The official figures given by AGIA, the professional college of Andorran Estate Agents, show that in 2005 property prices rose by 14% which is modest compared to the figure given of 19.5 % for 2003. The official forecast for 2007 is an estimated 4% which is just keeping in line with inflation. It certainly proves the old saying that in times of uncertainty bricks and mortar are the best investment. The telecoms crash of 2002 and the low interest rates on the money market coupled with the Iraq war have been contributing factors to the impressive performance of the Andorran property market. Having seen modest growth in sales over the period 1995 to 1999, the period 2000-2001 saw a sharp increase in demand which effectively mopped up most of the bargains which in some cases netted their brave purchasers a book gain of over 40%. With these sales out of the way the market entered into a phase where prices moved to higher levels and gains as the market continued to strengthen. The moratorium on building imposed on the Comuns by the government has now been lifted and the limitations imposed will ensure that supply does not outstrip demand - one of the prime factors influencing price trends in the Andorran property market. New build, high quality residential apartments are currently being marketed from €6000 per m² upwards and ski apartments within walking distance from the main cable lifts from €4,500 per m².
Property prices in Andorra compare favourably with those of other tax havens so now is the time to buy to take advantage of the upward trend.
If we can help you with any queries on the above, please do not hesitate to get in touch.
Judy Hill - Invico S.L. - 2007
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