Although attracting real estate developers isn’t an easy task, if there is a country that currently provides an ideal environment for your arrival it’s, without a doubt, Andorra. When we say that Andorra is a reference destination for new promoters and real estate investors we don’t say it only for the different fiscal, quality of life and social benefits that the country offers, but also for other aspects that have a direct and positive impact on the Andorran real estate sector.
Yields well above the European average
As detailed above, in addition to the tax and social benefits provided by Andorra, the developers of new construction who opt for the Principality do so, in large part, attracted by the high yields offered by the developments of new construction. So while largely from neighboring countries a yield of 10% and is considered a positive figure in Andorra yields can reach 25-30%, significantly higher than the European average. Therefore, this is undoubtedly the determining factor that positions Andorra as an ideal destination for those people who are interested in investing in new construction promotions.
As the sector ensures and we see from AND.IMMO, currently the main difficulty is attracting future investors interested in new developments. All in all, the sector also confirms that “there is a significant demand behind” and, therefore, “right now we need promoters who want to invest“. For this reason, the future prospects are encouraging, given that “Andorra offers many opportunities in the purchase of land for later construction or in the purchase of old buildings for remodeling.”
Increases the sale of luxury properties
Likewise, the Association of Real Estate Agents and Managers of Andorra (AGIA) has also confirmed that since the beginning of 2017 the sale of luxury properties has increased. In line with these statements, AND.IMMO has also seen a “substantial” increase in luxury property sales transactions. In this way, despite not having specific data, what is undeniable is that in recent months the luxury real estate sector has maintained a steady growth trend.
As for the reasons that have led to this growth, the president of the AGIA, Jordi Galobardes, indicates that there are people who acquire a luxury home to obtain a passive residence, since this involves an investment of € 400,000 and this means that many people decide to make this investment by acquiring a property of high standing. Likewise, as regards the second buyer profile, in many cases also foreign, it is found with those people who set up a company in the country to benefit from the tax advantages and, consequently, also end up buying a property.