| While property prices have risen in most parts of | | | | Outside of the capital (la Vella) these tend to be La |
| Europe, tax havens have outstripped most for | | | | Massana 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 financial | | | | season early December to late April tends to steer |
| communities, the small European tax haven of Andorra | | | | many newcomers to La Massana and Ordino. |
| has seen some startling rises in her property values in | | | | New Hotels |
| the last two years, with a repeat performance in 2007 | | | | In 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 2006 | | | | invested 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 Tribune | | | | real estate market. |
| Properties 2007 is likely to see a further ten per cent | | | | And 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', say | | | | further 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, and | | | | for all. |
| international buyers who want to gain residency in a | | | | One of the few drawbacks when taking residency in |
| tax haven. The international buyers add pressure on | | | | Andorra compared to Monaco has been access to a |
| prices and often buy three or four bedroom | | | | major international airport. While Monaco enjoys close |
| apartments and chalets, making sure that the top end | | | | proximity to Nice Airport, with a ten minute helicopter |
| of the market is as active as the low and mid range | | | | ride 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 the | | | | direct flights to Andorra. |
| Andorra ski holiday season, the second home buyers | | | | Recent road improvements between Barcelona and |
| could be thinner on the ground than usual. The number | | | | Andorra has cut this by thirty minutes, and there is a |
| of tourists is down by some fifteen per cent, and that | | | | possibility of a scheduled helicopter service, Andorra |
| could impact the property market as some visitors like | | | | weather permitting, or more likely ten minutes from the |
| it so much they buy a property in popular resorts such | | | | Spanish Andorra border, allowing quicker access to |
| as Arinsal and Soldeu. So we feel a ten per cent rise | | | | international flights for business people considering |
| in Andorra property values could be realistic for 2007.' | | | | Andorra residency. |
| Andorra as a tax haven destination has been | | | | Other improvements within Andorra include new |
| benefitting recently from the high cost of real estate in | | | | tunnels, allowing quicker access to the ski fields, and |
| Monaco. Monaco recently became the most | | | | driving around Andorra easier. |
| expensive country for property in Europe, and while a | | | | With more demand from international buyers who |
| 32m2 studio in Monaco will cost close to a million Euros | | | | want to take advantage of Andorra residency, the |
| including the closing costs, Andorra offers over 100m2 | | | | Andorra government announced in February that it |
| three bedroom two bathroom apartments at less than | | | | was increasing the number of residency applications |
| half the price - with the same tax advantages as | | | | from 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 different | | | | with Monaco real estate prices sky high it comes as |
| areas of Andorra, with the ski apartment buyers | | | | no surprise that the government has moved |
| tending to purchase in the key ski resorts of Soldeu | | | | favourably 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 year | | | | weather as well for many who see the ideal |
| round villages and towns which have a resident | | | | opportunity to live in a tax free environment and |
| community. | | | | enjoying winter sports too. |