FEEL-GOOD FACTOR AT SOTOGRANDE

There is a definite ‘feel-good’ factor growing amongst property professionals in Sotogrande, with the start of work on infrastructure for the latest phase of the La Reserva development and the plans for ‘Valderrama 2’ by the owners of the highly exclusive La Zagaleta Country Club bringing investment worth hundreds of millions of Euros to the area.

This feeling is only going to get stronger over the coming months, especially with the news from two different sources that Spain continues to be one of the top targets for international investors searching for value in the real estate market.

First off the mark was a report from international property consultants CBRE, which placed Spain third in Europe for ‘investor appeal’ in its Global Investor Intentions 2016 report, behind only Germany and the UK. The report showed the principal countries in which leading investors intend to make real estate investments.

Now a report from Jones Lang LaSalle (JLL), in collaboration with global business school IESE, says nine out of ten large investors give a ‘high’ or ‘very high’ priority to entry into the Spanish real estate market this year—with 38% of the 100 surveyed declaring they are already actively searching for opportunities in the residential sector. The sums involved are considerable—47% have funds of €100 million or more to spend.

New build properties for sale

Of particular interest to Sotogrande is the news that 31% of those polled are looking for building land, which ties in with news from the European Union’s statistics body Eurostat that construction activity in Spain increased by 20.3% year-on-year in January, the biggest increase in Europe. The two stats put together indicate that emphasis is being put on new builds, and in the present market this increasingly means high-end properties that are marketed to an international client base—a profile that is a perfect fit for Sotogrande.

With the plans for the area that have already been tabled—La Reserva, Valderrama 2, plus an ambitious tourism/residential scheme for Santa María Polo Club—it can be expected that Sotogrande will continue to attract high levels of investor interest in the coming months. The challenge for planners is to ensure that such developments follow Sotogrande’s founding principles of attractive, low density housing that respects nature, but their track record suggests that they will rise to the occasion.

Should you be interested in investing in property in Sotogrande, please contact us. We have the finest selection of quality villas, apartments and plots for sale within this exclusive area.