Why Andorra’s Real Estate Market is a Hidden Gem for HNW Investors

Pau Dols
29 may
2 Min. de lectura

In the heart of the Pyrenees between France and Spain lies one of Europe’s most overlooked but promising real estate markets: Andorra. Known for its low taxes, political stability, and breathtaking alpine landscapes, this microstate is now catching the eye of discerning investors seeking both capital appreciation and portfolio diversification.

With a booming property market and rising international demand, Andorra offers an exceptional opportunity—especially for high-net-worth individuals aiming to expand their real estate footprint into secure, tax-efficient jurisdictions.

Impressive Market Performance: Real Numbers, Real Potential

As of April 2025, average property prices in Andorra have reached €5,187 per square meter, reflecting a 12.13% increase year-over-year. This is not a one-off spike, but part of a strong upward trend: since 2019, property values in the principality have risen by nearly 50%.

Some areas are outperforming even further:

Escaldes-Engordany: Prices surged to €5,689/m² in early 2024, marking a 52.6% increase since 2019.

Andorra la Vella: The capital now averages €6,233/m², up 14.24% in just 12 months.

Encamp: Registered an extraordinary 53.3% growth in less than five years.

These figures rival or exceed those seen in more mainstream luxury markets—yet Andorra remains relatively underexposed, creating space for early movers.

Strong Demand, Limited Supply: A Rare Investment Equation

Between 2019 and 2024, housing demand in Andorra grew by 159%, while supply dropped by 7.1%. The imbalance between scarcity and high demand creates powerful upward pressure on prices—particularly in premium locations.

Investors benefit not only from the appreciation of assets but also from strong rental yields in short-term and long-term markets, especially in ski season and during summer months when HNWIs from across Europe flock to the region.

Legal Update: What the Llei Òmnibus Means for Investors

In 2024, Andorra introduced the Llei Òmnibus, a legal reform that changed the rules for foreign real estate investment:

Non-residents are no longer allowed to buy property, unless officially authorized by the government.

New residents with less than 3 years of residency can purchase a maximum of 1 property, unless granted special permission.

These restrictions aim to stabilize the local housing market—but for strategic investors, they simply underline the need for proper structuring and early residency planning.

With expert guidance, these rules can be navigated effectively, and in many cases, they act as a competitive barrier, reducing speculative buying and protecting long-term value.

Why HNWIs Are Turning to Andorra

No wealth tax, and income tax capped at 10%

Attractive residency programs for investors

Secure, stable, and politically neutral

Ideal location for asset protection and discretion

Strong growth potential in a luxury, undersupplied market

Linkand: Your Strategic Partner in Andorra

At Linkand, we specialize in connecting HNWIs with Andorra’s top real estate lawyers, tax advisors, and property experts.

Whether you’re planning to obtain residency, invest through an entity, or structure a discreet acquisition—we make the process seamless, secure, and tailored to your needs.

Explore Andorra with Linkand. Invest intelligently. Live exceptionally.