Page 89 - Economic report 2020

to renovations, with a decline of 20%, and the
APPROVED SQUARE METRES other 2% relates to demolition or extensions.
BY CATEGORY Chart 11.2 The reduction in approved surface area for
renovations can be explained by the strong
growth it saw in 2021, partly due to the
Renova Plan and approval of Law 15/2020, of
26 November, on urgent measures regarding
urban leases and to improve purchasing power,
which allowed for the refurbishment of housing
that was outside the regulations.

Among the actions adopted by the executive
government to boost affordable housing is the
purchase of buildings for refurbishment and
New builds Renovations repurposing as subsidised rental accommodation.
Extensions Demolitions Specifically, the Government allocated €17.2
million in 2023 to purchasing five buildings and
Source: The Official Association of Architects of Andorra.
leasing four more. Nine buildings in total, to
enable it to offer 147 homes at affordable prices.
Property sales
increased 6.4%. Another important construction sector law that
was passed in 2022 was Law 32/2022, of 14
September, to promote sustainability in urban
development and tourism, and amending the general Law on Land and Town Planning, of 29
December 2000, and general Law 16/2017, of 13 July, on tourist accommodation. The purpose of 87
this Law is to promote measures to ensure sustainable growth in urban activity which, in practice,
could become a moderating factor in the current dynamism in housing construction in Andorra.

Strong activity in the sector was accompanied by very dynamic demand. According to the statistics
for property transactions and for housing and land prices, 2,072 property transactions were carried
out in 2022, the highest number in the historical series, and 6.4% more than in the previous year.
After the declines seen in 2019 and 2020, the number of transactions regained the positive trend
of the period 2013-2018.

By parishes, the most important increases in sales were in Escaldes-Engordany (+71%) and
Andorra la Vella (+13%), where records were achieved. In contrast, they decreased in Sant Julià
de Lòria, Ordino and Encamp, partly due to the major increases recorded in the previous year,
as the figures are at historic highs. Regarding the type of transferred property, sales increased
for buildings (+42%), land (+34%), other constructions (+25%), parking spaces (+23%), apartments
(+10%) and single-family housing (+6%).

As for the price per m of transactions, this rose 17.7% in the case of apartments and also rose for Andorran economy: developments in the main sectors | XI. Construction and related industries
2
parking spaces and commercial premises. In contrast, it fell for land, warehouses and single-family
housing. As for apartments, in 2022, parishes that saw two-digit increases in the m price were
2
Escaldes-Engordany (+47%), Encamp (+26%)
and La Massana (+13%), while prices only fell The number of new mortgages
in Ordino. decreases.

The total number of new mortgages signed in
the Principality of Andorra in 2022 was 702, compared with the 884 granted in the previous
year. Of these 702, 651 were for residential use (16% less than in the previous year). Regarding
distribution by parish, La Massana and Encamp stand out, where 41% of the total mortgages