Andorra Real Estate Rises Again 2006

While property prices have risen in most parts ofOutside of the capital (la Vella) these tend to be La
Europe, tax havens have outstripped most forMassana and the upcoming village of Anyos, Ordino
property inflation.and Arinsal, although Arinsal's nightlife during the ski
Little known outside of the skiing and financialseason early December to late April tends to steer
communities, the small European tax haven of Andorramany newcomers to La Massana and Ordino.
has seen some startling rises in her property values inNew Hotels
the last two years, with a repeat performance in 2007In addition to attracting international buyers in increasing
possible.numbers for residency, the Andorra authorities have
In 2005 property inflation hit 19 per cent, and in 2006invested heavily in their ski infrastructure, boosting the
the official property inflation reached sixteen per cent,country's tourism potential and subsequently Andorra's
and according to Andorra property specialists Tribunereal estate market.
Properties 2007 is likely to see a further ten per centAnd for this year's ski season Andorra has opened a
rise.new family friendly ski park in Arinsal, moving away
'There are three streams of buyers for Andorra', sayfurther still from her old image of a cheap and cheerful
one local estate agency, 'An active local market,ski holiday for 18-30 year olds to one that caters well
second home buyers looking for ski apartments, andfor all.
international buyers who want to gain residency in aOne of the few drawbacks when taking residency in
tax haven. The international buyers add pressure onAndorra compared to Monaco has been access to a
prices and often buy three or four bedroommajor international airport. While Monaco enjoys close
apartments and chalets, making sure that the top endproximity to Nice Airport, with a ten minute helicopter
of the market is as active as the low and mid rangeride available, Andorra's nearest airports have been
properties.'Barcelona and Toulouse, three hours away, with no
With a lack of snow for the first eight weeks of thedirect flights to Andorra.
Andorra ski holiday season, the second home buyersRecent road improvements between Barcelona and
could be thinner on the ground than usual. The numberAndorra has cut this by thirty minutes, and there is a
of tourists is down by some fifteen per cent, and thatpossibility of a scheduled helicopter service, Andorra
could impact the property market as some visitors likeweather permitting, or more likely ten minutes from the
it so much they buy a property in popular resorts suchSpanish Andorra border, allowing quicker access to
as Arinsal and Soldeu. So we feel a ten per cent riseinternational flights for business people considering
in Andorra property values could be realistic for 2007.'Andorra residency.
Andorra as a tax haven destination has beenOther improvements within Andorra include new
benefitting recently from the high cost of real estate intunnels, allowing quicker access to the ski fields, and
Monaco. Monaco recently became the mostdriving around Andorra easier.
expensive country for property in Europe, and while aWith more demand from international buyers who
32m2 studio in Monaco will cost close to a million Euroswant to take advantage of Andorra residency, the
including the closing costs, Andorra offers over 100m2Andorra government announced in February that it
three bedroom two bathroom apartments at less thanwas increasing the number of residency applications
half the price - with the same tax advantages asfrom the previous 200 year a year to 500.
better known Monaco, bringing out a map of Andorra'Andorra is becoming more popular among the
for many investors recently.international buyers', comment a local travel guide, 'And
The different type of buyers tend to head for differentwith Monaco real estate prices sky high it comes as
areas of Andorra, with the ski apartment buyersno surprise that the government has moved
tending to purchase in the key ski resorts of Soldeufavourably by allowing more residents. But it's not just
and Arinsal.the tax free living they come for - it's the Andorra
Those looking for residency go more for the yearweather as well for many who see the ideal
round villages and towns which have a residentopportunity to live in a tax free environment and
community.enjoying winter sports too.