Luxury Outlook 2023
An ambitious exploration into high-end residential markets across the globe.
Last time we explored why a luxury rental in Croatia might be your next real estate investment; now let’s take a closer look at a another destination with a thriving luxury rental market and hear directly from our local area experts there.
The Principality of Andorra can be found on the Iberian Peninsula, bordered by France and Spain. Let’s learn more why this popular destination for tourists may be the destination for your next rental investment.
Sotheby’s International Realty (SIR): What sets rental properties in your country apart from the rest of the world?
Angel Belanche, International Sales Marketing Director, Andorra Sotheby’s International Realty (ANG): Enjoying the outdoors, the local rustic gastronomy, and a low commercial tax rates helps define the Principality of Andorra as a unique destination.
With more than 300-kilometers of ski runs, Andorra offers a great variety of activities in the snow. From spending a sunny day of ski on one of the three ski stations in the country, to a unique mushing ride experience, to climbing up the mountain with a snow motorbike under the stars to have a refined culinary experience at a restaurant at the top of the mountain, the uniqueness of these experiences is quintessentially Andorra.
During the warmer months, it’s impossible to be bored in Andorra with countless activities, playgrounds, and ecological leisure centers. Over 90% of the landscape in Andorra is pure nature, and 10% of that is UNESCO World Heritage protected. Andorra in summer is synonymous with adventure, in some of the safest conditions. And the best proof of that are our ski resorts, which are transformed into activity parks for all ages.
SIR: What are the benefits of owning a rental property in your country?
ANG: We know how important is to our client owners to allocate their investment resources in profitable assets. Under our retreats program, the owners can get up to 18% return on their investments yearly. This means that by renting the property 5-10 weeks a year, they can get a return that equals what they would get as a conventional yearly rental.
It all depends on the availability of the property, but we offer a service that can let the owners monetize their property, at the same time they still use it when they please.
SIR: What trends are you seeing in your rental market?
ANG: 2020 taught us how important spending time with our families and close ones is. Travel and job restrictions boosted the demand for remote rental locations. Andorra is a market where almost every property feels like it is isolated from the rest of the world, even though you might be just outside the city center.
Our market has seen a tremendous boost in the demand for remote villas and luxury residences in Andorra, where you can have a luxury-service experience, in a safe environment. For this reason, we saw an opportunity of having our client owners monetize their estate investments by renting their homes on a weekly basis.
SIR: How does the rental market drive business for your company?
ANG: As Sotheby’s International Realty® affiliates, our goal is to target qualified users willing to invest their holiday time in iconic properties with top-tier service while looking for a unique experience.
Our luxury residences can be rented from 1.400€ / night, and our villas starting at 2.250€/night. This includes a series of included services: from a daily housekeeping service, an initial stocking of food, a welcome service in partnership with Champagne Barons de Rothschild where we await the arrival of the clients at the property, and a 24/7 concierge service to attend any demand.
We launched our Luxury Retreats program in November 2021. Despite all the difficulties derived from the current global crisis, we were able to reach 100% occupancy weeks and rented Villas at 4.100€ / night.
Some of our client owners already received a 10% year turnover of their property investment, with only 4 months of activity, and they couldn’t be happier about it.