The Terra Vella affordable rental housing project derailed due to lack of funding. As he was able to find out diary from sources familiar with the facts, the only company that participated in the negotiated procedure to award the construction and concession of the block, the Cierco Grouphas not been able to close an agreement with the banks.
The communal land where the block was to be built.
The last conditions offered by the municipality of Andorra la Vella to the company in order to improve the profitability expectations of the project for the successful bidder were generous. The corporation made a contribution of two million euros to help pay for the construction work on the property. In addition, it allowed a circle operate half of the homes at market price during the 50-year concession period. The building had to have fifty homes. The regulated price flats had to be rented for 825 euros per month, in the case of the two-bedroom ones, and 1,000, in the case of the three-bedroom ones.
The community had offered a contribution of two million to help pay for the work
costs
Sources in the construction industry pointed out that the price per square meter of a standard apartment building currently stands around 2,300 euros. Therefore, only the construction of fifty houses of about 70 square meters on average would climb to about eight million euros. To this amount should be added the cost of dismantling and excavation – in this sense, it should be remembered that the land, communally owned, it has a fairly steep slope – and the construction of a possible underground car park.
The corporation also allowed half of the flats to be rented at market rate
On the other hand, these same sources expressed doubts about the sale of homes at market price included in the project. How attractive would these flats be to potential tenants, they argued, if a property with very similar features is being rented at a substantially lower price?
The construction of the flats, not counting the excavation, would cost around eight million
In August this publication already revealed that the negotiated procedure with publicity to award the concession was at a standstill because the only company interested had not yet closed the necessary financing to start the excavation of the plot. By then, the procedure had already been launched for five months. Throughout these months the common, when asked about the conversations with circlehas limited himself to saying that they followed his evolution, without giving more details.
The project was presented to the media on site on October 22, 2024, almost two years ago. The Consul Major, Sergi González, and the Minister of Housing, Marc Torrentthey explained that they would build about fifty floors of rent at an affordable price on a plot of communal property located next to jovial The competition to find a private partner failed. It had to be declared deserted because the only candidacy submitted did not meet the requirements of the basic documents.
On December 31, 2025, the competition was reactivated through a negotiated procedure, a public procurement modality that allows negotiate contract terms with bidders. It remains to be seen what will be the next step that the common will take in the face of the poor results of the public-private model.
