Virtus warns new Andorra la Vella urban plan may hinder rental housing

The political formation Virtus has expressed concerns regarding the new Parochial Urban Planning Plan (POUP) for Andorra la Vella. The group warns that the new regulations could hinder the development of rental housing in the capital.

Virtus criticizes two primary measures: a 40% reduction in buildability and an increase in mandatory land transfers to 30%. The organization argues that while developers of housing for sale can pass increased costs to buyers, rental projects have much tighter margins for recovering investment. Consequently, these measures may reduce the attractiveness of residential projects intended for lease.

Furthermore, Virtus questions the proposed compensation of 10% buildability in exchange for setting affordable rent prices, claiming it is insufficient to offset the 30% mandatory transfer. The group advocates for urban planning that accounts for current market realities to prevent discouraging private sector collaboration in increasing the housing supply.