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