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