Sotogrande property report 2008

The private community of Sotogrande continues to maintain its status as one of the most elegant and exclusive resorts in Europe. It is located within easy reach of Gibraltar and Málaga Airports, which are currently both being developed and extended. Clients are attracted by the area’s mild year round climate and outdoor life, its unique sophisticated yet understated lifestyle and its world ranking sports facilities including top international golf courses of Valderrama (the best course in Europe) Almenara, San Roque and Alcaidesa and the famous Santa Maria Polo fields. Sotogrande offers excellent nautical facilities and the local beaches are popular for a variety of water sports.

Furthermore, the area is within easy reach of key Spanish cities such as Cádiz, Seville and Granada and it is only a 40 minute drive from Marbella and Puerto Banús. Although the infrastructure of the area is completely geared to year round living and provides international schools for permanent residents, the gated communities provide safety and protection for residences which are not permanently occupied.

In Sotogrande the market has remained stable and has shown price increases of 5-10%. One of the main reasons for this stability is that as a planned community, with little future construction, the supply of new property coming on the market reduces year on year. Here the average price of an apartment is approximately €500,000 rising to €1.5 million and more for a villa. Villas and penthouses are the most requested properties and there is also demand for properties with direct access to a private mooring.

Selling periods for properties range from 8 months to two years, depending on the property and price. The majority of clients do not buy with a mortgage and are often in no hurry to sell. Essential luxury features for a property will include a private cinema, gym, Jacuzzi and Turkish bath, a wine cellar and separate guest/staff accommodation.

The main markets are British (35%), Spanish (35 %), Irish (15%) and German (10%). The rest of the market is made up of Swiss, Dutch, Belgian, Scandinavian, French and some Russians. The average spend is high for all nationalities – around €1 million plus. Some of the biggest spenders include Irish, Swiss and Russians who will spend up to €5-6 million.

There is a core of family buyers who live in Sotogrande and work in Gibraltar and an overall 25% of clients use their property as a first residence. However, the bulkof buyers (60%) buy as a second residence and the most requested areas are Sotogrande Costa and Alto in general.

Local agents predict that 2008 will be a slower year, although Sotogrande will remain attractive for Spanish as well as for international clientele. Vendors should be aware that although the market is relatively stable there is still negotiation generally of 5-15% down from the asking price to close a sale. Areas that could prove interesting in the future are also Pueblo Nuevo de Guadiaro and Alcaidesa.

Sotogrande Property Prices

TYPEAV. PRICE €PRICE INCREASE 2006 VS. 2007AV SALE PERIOD IN MONTHS
Villa with views, 4 bed, 350m21.800.000 €5 %18 – 20 months
Villa no views, 4 bed, 350m21.300.000 €No change20 – 24 months
Apartment with views, 2 bed, 100m2600.000 €5 %15 – 20 months
Apartment no views, 2 bed, 100m2400.000 €No change20 – 26 months
Country house, 3 bed, 350m2900.000 €10 %24 months
Townhouse, 3 bed, 180m2580.000 €5 %15 months
Plot m2230 €8 %20 months

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