A Guide to Real Estate Agencies and Realtors in Andorra
- elizabethhelenpier
- Dec 6, 2024
- 5 min read
Updated: May 15
It can be quite challenging to understand the subtle differences between different professions and how they work in your new country compared with back home. When it comes to real estate agencies in Andorra and Andorra realtors, it is the AGIA (the Andorran Professional Real Estate Association) that controls the licenses, regulations and examinations for this profession.
How are Andorra realtors trained?
Once a year the AGIA offers a course and final examination for prospective Andorra real estate agents looking to be licensed. It is only after passing this exam and paying a 3000€ deposit to the association that you are able to open a real estate agency in Andorra.
The AGIA exam covers various topics. The general topics englobe subjects such as Andorran geography and how the country is divided. The more specific topics cover aspects such as taxation, rules and regulations on property and legal procedures.
Until recently, it was a relatively easy exam to sit, mostly because the property market was not of much interest to most people. However, since the property prices have exploded in the last few years, more and more people have been eager to get the qualification. Originally, the yearly course and final exam were organised by the Government. Nowadays, with the latest increased interest and lack of professionalism within the realtor sector, the Government decided to outsource the exam which is now organised by the University of Andorra. The course still spans over a year but the exam is now much harder to pass. This is due to the fact that the content of the exam has increased considerably, applicants have to have substantial legal knowledge (or background) and the marking is very strict.
How many estate agents and agencies are there in Andorra?
According to the AGIA there are currently 315 licensed real estate brokers in Andorra and 262 real estate agencies in Andorra. The majority of these agencies are not actually acting as property brokers for clients on the buy-sell market. Rather the agencies offer other services such as building management and maintenance, or property investment and asset management. We found 90-100 agencies that are advertising property/brokering in the buy-sell market and of those approximately only 30-40 real estate agencies in Andorra that work mostly or exclusively in the buy-sell property market in Andorra
Within the buy-sell market, not all Andorra real estate agents you will meet will be licensed. In fact of the 40 mostly exclusive property broker / selling agencies, nearly all only had one agent that was a licensed real estate broker in house. This is due to the necessity for the AGIA license only being for the creation of a real estate company. Once you have the agency created you can train your working agents as you please with no need for them to be licensed and examined by the AGIA like yourself.
What types of realtors exist in Andorra?
The real estate agents who are directly involved in the property broker market in Andorra are in their vast proportion selling agents. There are in fact no other exclusive buying agencies in Andorra apart from Pierce & Sharp.
As we have seen, many of the licensed real estate agencies in Andorra are not in fact selling agencies or property brokers, instead they offer other services that include:
Property investment firms
Building management and administration
Family companies that control property patrimony
Relocation agencies that join the AGIA to assure commission on their client’s property purchases
What percent of commission do realtors receive in Andorra?
The realtor commission, which is paid solely by the seller is set at 5% maximum by law. Sellers can negotiate a lower rate than the maximum established of 5% but this rarely occurs if you are only selling one property.
Which listing agent to work with in Andorra?
Over time and experience, we have been able to shortlist the selling agents that are the most responsive (within Andorran standards!), transparent and professional. Depending on the properties available and which listing agent they belong to, we will choose the perfect selling agent to work with for you for each property. This selling agent will change between properties in many cases, in order to get you access to the entire panorama of Andorra's real estate market.
Do buyer’s agents exist in Andorra?
Property buying agents have never been so ingrained in European culture as you might find in other parts of the world. Change is occurring however, and people are taking note to this shortfall in the European housing market. Consequently, buying agents are popping up in cities all over Europe now. Buying agents in Andorra have up until now been an unseen concept in the country. The real estate panorama in Andorra has changed substantially in the past 10 years, and the needs of the past are not the same of today though. This is why we have created Pierce & Sharp exclusive buying agency to look out for your interests in this new era of real estate in Andorra.
Why were buyer’s agents not needed in the Past in Andorra?
Historically most of the property buyers have come from Spain and France if not locally. The sales were few and far between, the languages between countries shared, and the Andorra real estate market was extremely stable with little demand and a healthy supply. It is therefore understandable why no buyer’s agents were necessary until a few years ago.
Why do you now need a buying agent in Andorra?
Nowadays the landscape looks quite distinct compared with the past. Although foreign investment in property continues to come from Spain and France in large numbers, there has been a huge shift at the immigration and foreign investment level. Many of the new residents and new foreign investors in property in Andorra come from more increasingly diverse backgrounds where neither the culture nor the language is shared with Andorra. To add to this, the supply of property has stagnated in Andorra and importantly there is no public record of property purchases meaning historical sales prices are mostly hidden from public view. Read more in our blog post The Andorra real estate crisis, what happened? to understand the changes happening in Andorra that affect our property market
The consequences of these factors, means property prices continue to rise into 2025, despite the global trend of stabilisation on the property market for a couple of years now. And importantly, without the help of a buying agent working for them, the unsuspecting expat can easily be swindled into overpaying or buying an unsuitable property with underlying issues.
This is why we believe having a buyer’s agent is paramount when purchasing a home or investment in Andorra today.
