The ski property market in Andorra and the Spanish Pyrenees remains stable with strong sales activity, according to Engel & Völkers.
Andorra, a Principality known for its three ski resorts Ski Andorra, Vallnord and Grandvalira, attracts investors from all over Europe.
Its resorts cover over 300km of slopes and it is renowned for tax-haven status and proximity to Barcelona, which is a three-hour drive away.
Engel & Völkers reports that despite the pandemic, average prices in the La Massana, Escalades and Andorra La Vella areas have increased to €4,200 per sq metre, up from €3,989 in 2019.
In the centre of Andorra, a 100 sq metre three-bed apartment is likely to cost around €500,000, while a large house on the outskirts – which may need refurbishment – could set investors back closer to €1 million.
The agency says that traditionally investors purchasing in Andorra are looking for holiday homes. However, during 2020 there has been a shift towards looking for permanent residency.
Around 50% of Engel & Völkers’ clients are now looking to live in the area permanently to take advantage of the Principality’s tax haven status and safe, healthy environment.
The shift towards permanent residents has been felt among British buyers too. However, overall demand for British buyers has dropped by 30% since last year due to Brexit and Covid-19 travel restrictions.
The most in-demand areas of Andorra at the moment, according to Engel & Völkers, are Canillo and La Massana due to their proximity to the ski slopes, connections to the town centre and short distance to the French border.
This post has originally been featured in Property Investor Today.