Andorra rentals: affordable flats allocated off‑market amid soaring demand

The rental market has long become one of the country’s main structural challenges. Demand far outstrips supply, and many people check agency portals daily hoping to find an affordable apartment. In practice, so few units reach the public market that some are assigned directly to applicants on internal waiting lists without ever being published.

Agencies say apartments priced at market levels can be allocated immediately from their databases. Nou Aire acknowledges that “an apartment of €1,200 may not even be posted,” because the list of clients who have left their details allows for instant allocation. According to agents, units that do appear on portals tend to be those with rents that are “off market” — meaning too high to be assigned directly to someone on a waiting list.

On Star’s owner, Penélope Civera, explains that listings sometimes never reach the public because tenants leaving a property require urgent re-housing “or they would be left without a home.” The agency prioritizes continuity of housing for these clients before making an offer public. Even when a flat is posted, she says it can remain visible for only a very short time: an apartment in Canillo advertised at €1,000 “lasted hours,” she recalled. Only the most expensive units — for example, those asking €5,000 per month — typically stay longer on the market, while during peak demand most rentals are allocated in under a week.

Some firms report that they publish every available property despite maintaining waiting lists, but they acknowledge this rarely changes the market dynamic: desirable units still “fly.” Andorra Sotheby’s follows a similar pattern, saying that whether a flat is assigned directly or published “depends on the apartment.” The agency adds that people who leave their details often seek more affordable options, so higher-rent properties tend to remain available for longer. Apartments priced between €1,600 and €1,800, they say, are usually leased within about a week.

Gal·li also claims to publish all listings but maintains a database of interested parties it notifies immediately. “Flats are assigned in next to no time if they are between €1,800 and €2,500,” one employee said. The combination of strong demand and rents still considered acceptable by the market means these properties disappear from circulation very quickly.

Government data mirror the agencies’ reports of high demand for market-priced flats. The average rent for new contracts signed this year is reported at €1,338 per month, based on a study of 4,300 contracts signed over the past three years. The analysis highlights a dual scenario in the rental sector: long-standing contracts (over five years) average €7.80 per square metre, while new contracts signed this year exceed €18 per square metre, underscoring the market’s structural tension and the difficulty of accessing housing at affordable conditions.

Price growth has been marked in recent years: in 2023 rents rose 18% to an average of €1,156 per month (about €15/m²), and a 13.6% increase in 2024 has pushed the average closer to €1,400. The result is a market where competitively priced apartments are rarely seen publicly and are quickly allocated to prospective tenants known to agencies.