Andorra la Vella is not only the capital of the Principality: it is the economic, commercial and residential heart of the country.
Approximately 40% of Andorra's real estate transactions take place here, making it
in the most active and also the most competitive market.
Choosing the right real estate agency in Andorra la Vella is essential to access the best opportunities.
In this guide we explain how the capital's market works, what prices to expect depending on the area and what
Look into a local real estate agency.
Table of contents
- Why Andorra la Vella is the most in-demand area
- Apartment prices in Andorra la Vella by neighborhood
- What to look for in a real estate agency in the capital
- Neighborhoods and areas of Andorra la Vella
- Advantages and disadvantages of buying in the capital
- Frequently asked questions
- Conclusion
Why Andorra la Vella is the most in-demand area
The capital of the Principality concentrates most of the country's activity. With barely 23,000 inhabitants and
Covering an area of 12 km², Andorra la Vella offers everything you need within walking distance.
Reasons for its popularity
Complete services:Hospitals, international schools, shopping centers, banks and offices
governmental. Everything is in the capital or just a few minutes away.
Financial center:Most companies and professionals have their headquarters here. If you work in Andorra,
Your office is probably in Andorra la Vella.
Urban life:Restaurants, cafes, nightlife (moderate) and cosmopolitan atmosphere. It is the area with the most
leisure options.
Transport:Bus connections to all parishes and Barcelona/Toulouse. The central station is
here.
Trade:Meritxell Avenue is the main commercial artery of the country, with stores of all brands.
Market data
| Indicator | Andorra la Vella | Half Andorra |
| Average price €/m² | 5,964 – 6,199€ | 4,898 – 5,237€ |
| Annual transactions | ~480 | 1,200 total |
| Average sales time | 3-4 months | 4-5 months |
| Rental demand | Very high | High |
Prices according to Idealista and Indomio (2024-2025). Andorra la Vella is the parish with the highest prices in the Principality.
Apartment prices in Andorra la Vella by neighborhood
Prices in the capital vary significantly depending on the exact location. The center is not the same as the
high residential areas.
Price table by area
| Area | Price €/m² | 80m² apartment | Characteristics |
| Center (Av. Meritxell) | 6,000 – 6,500€ | 480,000 – 520,000€ | Maximum comfort, noisy |
| Barri Antic (old town) | 5,200 – 5,800€ | 416,000 – 464,000€ | Charming, old buildings |
| The Margineda | 4,000 – 5,000€ | 320,000 – 400,000€ | Residential, families |
| Santa Coloma | 4,800 – 5,200€ | 384,000 – 416,000€ | Cheaper, good views |
| Upper area (towards Escaldes) | 5,500 – 6,000€ | 440,000 – 480,000€ | Quiet, views, premium |
Indicative prices according to Idealista (2024-2025). They vary depending on the specific characteristics of each property.
What influences the price
Increase the value:
- Open views of the valley or mountains
- Sunny terrace or balcony
- Parking included (highly valued in the center)
- Recently renovated
- Building with elevator and doorman
Reduce the value:
- Low floors on noisy streets
- No parking
- Old buildings without renovation
- North orientation
- Far from the shopping center
Recent evolution
Andorra la Vella has experienced constant price increases:
| Year | Average price €/m² | Variation | Fountain |
| Jan 2024 | €5,032 | – | Idealistic |
| Dec 2024 | €5,872 | +16.7% | Andorra Corporate |
| Aug 2025 | €6,199 | +5.6% | Indomio |
Andorra la Vella has been the parish with the highest price increase in 2024. Growth remains positive due to high demand and the scarcity of land in the capital.
See apartments in Andorra la Vella →
What to look for in a real estate agency in the capital
Not all real estate agencies in Andorra know the capital equally well. These are the features you should
have a good agency to buy in Andorra la Vella:
Physical presence in the capital
A real estate agency with an office in Andorra la Vella has direct contact with local owners and
street-to-street market knowledge. Be wary of agencies that operate from other parishes without
real presence in the capital.
Active property portfolio
Ask how many properties they currently have in Andorra la Vella. An active agency should have at
least 15-20 flats in the capital at any time. If they have less than 10, it's probably not your area.
of specialization.
Knowledge of each neighborhood
A good real estate agency should be able to explain the differences between living in the center, in La Margineda or in
Santa Coloma. If all the neighborhoods seem the same, look for another agency.
Access to properties before publishing
In a competitive market like Andorra la Vella, the best properties are often sold before
appear on portals. A well-connected real estate agency will give you access to these opportunities.
Key questions
Before committing to a real estate agency to buy in the capital, ask:
- How many apartments do you currently have in Andorra la Vella?
- How many sales have you closed in the capital in the last year?
- Can you show me properties that are not published online?
- What differences are there between the different neighborhoods?
- How long does it take on average to sell a flat here?
Neighborhoods and areas of Andorra la Vella
The capital has very different personalities depending on the area. We help you choose:
Center and Meritxell Avenue
Characteristics:
- Maximum comfort: everything on foot
- Modern and old buildings mixed
- Can be noisy due to traffic and commerce
- Difficult to park if you don't have your own parking
Ideal for:Professionals who value comfort over tranquility, rental investors.
Indicative price:6,000 – 6,500€/m²
Barri Antic (Old Town)
Characteristics:
- Charming cobblestone streets
- Rehabilitated stone buildings
- Close to the center but quieter
- Smaller apartments with peculiar layouts
Ideal for:Couples without children, lovers of historical character
Indicative price:5,200 – 5,800€/m²
The Margineda
Characteristics:
- Consolidated residential area
- Good offer of family apartments
- Supermarkets and local services
- A little further from the center (10 min walk)
Ideal for:Families with children, who seek tranquility without going far away.
Indicative price:5,000 – 5,500€/m²
Santa Coloma
Characteristics:
- most economical area of the capital
- In the lower part, near the river
- Good road access
- Varied offer of apartments
Ideal for:Tight budgets, first buyers.
Indicative price:4,800 – 5,200€/m²
Upper area (limit with Escaldes)
Characteristics:
- Newer, higher quality buildings
- Panoramic views of the valley
- Very close to Caldea and premium area
- Most exclusive atmosphere
Ideal for:Buyers with high purchasing power, who seek quality.
Indicative price:5,500 – 6,000€/m²
Advantages and disadvantages of buying in the capital
Advantages
Everything at hand:You don't need a car for everyday life. Supermarkets, pharmacy, banks, restaurants... everything
It is within walking distance.
Best for rent:Rental demand is higher and more stable in the capital. If you buy as an investment,
Andorra la Vella offers better occupancy.
Most stable value:Prices in the capital are the most resistant to falls. In times of crisis, the areas
peripherals suffer more.
Social life:More leisure options, restaurants and nightlife than in other parishes.
Health services:The hospital is in the capital. For families with children or elderly people, the proximity
It's an advantage.
Disadvantages
Higher prices:You pay a premium to be in the capital. The same apartment can cost 25-35% less in Encamp or Sant Julià de Lòria.
Additional tax for foreigners:If you are not a resident for more than 3 years, you must add an additional 3-10% to the purchase price (Law 3/2024). See section “Information for foreign buyers”.
Less nature:Although the entire Andorra is surrounded by mountains, from the capital access to bus routes
Hiking or skiing requires travel.
Noise and traffic:Especially in the center, the atmosphere is more urban and can be noisy.
Difficult parking:If your apartment does not include a parking space, parking in the capital is a real problem.
Less space:Apartments in the capital tend to be smaller than in other areas for the same price.
Frequently asked questions
How much does a flat in Andorra la Vella cost?
The average price is approximately €6,000 – €6,200/m² (2024-2025), the highest in all of Andorra. An 80m² apartment costs between €384,000 and €520,000 depending on the area and characteristics. In the center (Av. Meritxell), prices exceed €6,300/m².
Important for foreigners:Non-residents must add an additional 3-10% for foreign investment tax (see corresponding section).
Is it better to buy in Andorra la Vella or in Escaldes-Engordany?
It depends on your profile. Andorra la Vella offers more services and urban atmosphere. Escaldes-Engordany is more exclusive and quiet. Currently, both parishes have very similar prices (€5,900-€6,200/m²), although Escaldes can reach €7,000/m² in premium areas. If you are looking for comfort and services, choose the capital. If you prefer exclusivity and tranquility, Escaldes may be a better option.
Is there a lot of apartment supply in the capital?
The offer is moderate but constant. At any given time there are between 80 and 120 apartments for sale in Andorra la
Vella. Well-located and well-priced properties sell in 2-3 months.
Is it profitable to buy to rent in Andorra la Vella?
Yes, it is the area with the best rental demand. The gross profitability ranges between 3.5% and 4.5% per year. Occupancy is very high and tenants are usually professionals with stable contracts.
Important:From April 2025, foreign investors CANNOT purchase properties for tourist/vacation use. Only long-term rentals are allowed.
What neighborhood do you recommend for families?
La Margineda is the best option for families: quiet residential area, good schools nearby, lower prices
accessible than the center and a good offer of 3-4 bedroom apartments.
Important information for foreign buyers
If you are a foreigner or resident with less than 3 years in Andorra (in the last 10 years), you must know the current legislation before buying in Andorra la Vella:
Foreign investment tax (Law 3/2024)
In addition to the ITP (4%) or IGI (4.5%), foreigners must pay an additional tax:
| Acquisition type | Additional tax |
| 1st home | 3% |
| 2nd home | 5% |
| Real estate promotions | 10% |
This means that a foreigner pays approximately 7.5-8% in total expenses, not 4.5%.
Example:Purchase of €500,000 → Foreigner pays ~€37,500 in taxes (not €22,500).
Purchase limits (Omnibus Law, April 2025)
Foreign investors can only acquire:
– Maximum 2 flats/apartments (with up to 3 parking spaces and 3 storage rooms each), OR
– 1 single-family home or plot to build it
Prohibitions:Purchase for tourist/vacation use or speculative resale is not permitted.
90% Bonus:It only applies if the property is rented at an AFFORDABLE PRICE for at least 10 years. Renting at market rate does NOT entitle you to this bonus.
ITP exemption for residents
If you are a resident of Andorra and buy your first habitual residence up to €600,000, you may be EXEMPT from the ITP (savings up to €24,000).
Requirements:
- First home owned
- Destination: habitual and permanent residence
- Keep it for at least 4 years
- Income below the established threshold
Source: Law 3/2024, Law 5/2025 (Omnibus), Government of Andorra
Conclusion
Andorra la Vella is the natural choice for those looking for comfort, services and urban living in the
Principality. Prices are the highest in Andorra, but they also offer the greatest stability and demand.
To buy in the capital, choose a real estate agency with a real presence in Andorra la Vella, knowledge
detail of each neighborhood and access to properties before they hit the public market.
The capital's market is competitive but continues to offer opportunities for those who know how to look.
Are you looking for an apartment in Andorra la Vella?
At Versus Andorra we have an office in the capital and we know every street, every building and every opportunity.
We have been helping buyers find their home in the heart of the Principality for more than 20 years
See apartments in Andorra la Vella →
Contact our team →
Sources consulted
– Idealista: idealista.com/valoracion-de-inmuebles/andorra-la-vella-andorra (prices by area August 2025)
– Indomio: indomio.es/mercado-inmobiliario/andorra/andorra-la-vella (price evolution 2024-2025)
– Andorra Corporate: andorracorporate.com (real estate market perspectives 2025)
– Govern d’Andorra: govern.ad (official legislation)
– Law 3/2024: Tax on foreign real estate investment
– Law 5/2025: Omnibus Law for sustainable growth and right to housing
Legal notice:This article is for informational purposes only and does not constitute legal, tax or financial advice. Price data is indicative and may vary depending on the specific characteristics of each property. Andorran legislation is subject to frequent changes. We recommend consulting with specialized professionals before making real estate investment decisions in Andorra.
Last update: December 2025
Last updated: 5 December 2025
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