2025 SOTOGRANDE REAL ESTATE ANNUAL REPORT

Sotogrande’s property market has remained resilient throughout 2025. Global tensions, including conflicts in the Middle East and persistent inflation in Europe, have introduced some buyer caution, particularly among mid-market purchasers. However, these headwinds have not derailed momentum in the premium and ultra-prime segments, where demand remains steady and well-capitalised buyers continue to transact.

The sentiment entering 2026 is cautiously optimistic. Sotogrande’s core fundamentals, low density, exceptional lifestyle amenities, international schooling, safety, and its reputation for discretion over ostentation continue to attract both relocating families and international investors seeking security, stability, and quality.

Post-COVID behavioural shifts have not reversed; Sotogrande today is more desirable than ever among families seeking space, privacy, and climate resilience, and among global buyers prioritising wellness, outdoor living, and community over nightlife and density.

Inventory levels tell the story:

• Active listings down, 12% year-on-year
• €1M–€2M market:
  • Strong volume of enquiries
  • Very price-sensitive
  • Longer decision cycles
  • Negotiation expected

• €2.5M+ luxury segment:
  • Tight supply
  • High-quality new builds sell fastest
  • International demand remains robust

Top-tier properties priced correctly are moving, while overpriced or outdated stock is sitting. Buyers, especially in the premium segment, are highly selective and informed.

Demand in 2025 is driven by multiple international regions, each with its own motivations.

Primary Buyer Groups:

·UK, Germany, Benelux, Scandinavia, Eastern Europe, Middle East. These remain the dominant segments for high-end villas and plots. Buyers choose Sotogrande specifically for its understated luxury, stability, and family-friendly environment.

·North American and Latin American Buyers. A new and fast-growing segment. Latino families from Florida (Colombians, Venezuelans, Argentinians) are increasingly purchasing second homes on the coast. Many have first settled in Madrid, later gravitating toward the Costa del Sol for lifestyle reasons and as a hedge against political uncertainty in the U.S.

·Eastern Europe HNWIs. Buyers from Poland, Estonia, and Latvia are showing renewed interest. Their motivations:

• International schooling
• Security
• A European “safe haven”
• Attractive long-term capital stability

·British Buyers Returning. With Brexit normalising, UK demand has stabilised. Many high-end British buyers are seeking a “clean lifestyle reset” from declining quality-of-life conditions back home.

·The Marbella Migration. A significant trend: wealthy families with roots in Marbella (from the 1980s/90s boom) now in their 60s are choosing Sotogrande for privacy, space, and calm, while retaining social ties in Marbella due to improved road infrastructure.

• Ultra-Luxury Villas: €5M–€15M+ (with prestige sales up to €22M, e.g., NIWA by Sotogrande SA)
• Luxury Villas: €2.5M–€5M
• Family Homes: €1M–€2M
• Marina Apartments: €800K–€1.4M

Most active areas in 2025:

• La Reserva – top performer for high-end sea/golf-view villas
• Sotogrande Alto – strong demand for family homes and modern new-builds
• Marina – scarcity-driven pricing, especially for waterfront units
• Pueblo Nuevo & Torreguadiaro – fastest-growing areas for younger buyers

Very limited supply on the Costa side of Sotogrande, leading to upward price pressure.

La Reserva

Still, the flagship area for villas with sea views, golf frontage, and privacy.

• Few prime plots remain
• Ongoing build activity from Sotogrande SA and private developers
• Multiple €8M–€15M+ villas being constructed

Marina Sotogrande

Chronic scarcity of quality apartments and townhouses; high demand from boating and beach-oriented buyers.

Kings & Queens

Sotogrande’s classic and most exclusive neighbourhood.

• Almost no inventory
• Trend: demolition of older villas and replacement with modern “fit-for-purpose” properties
• Renovations are rising sharply as plots remain irreplaceable

• Interest rate reductions stimulate financed purchases

• Potential ratification of the Spain–Gibraltar agreement, improving border flow and airport utility

• Polo, golf, marina life, tennis, padel, and international schooling remain key magnets

• Strong multi-generational lifestyle appeal

• Fairmont La Hacienda: Opened Spring 2025 — raising the hospitality bar with a world-class spa, ocean views, and luxury services.

• MIM Sotogrande Hotel (Messi Group): Opened Summer 2025 — modern boutique concept expected to revitalise Sotogrande Port.

• SO/ Sotogrande: Continues to perform strongly as a luxury lifestyle hotel anchoring La Reserva’s hospitality ecosystem.

Plaza Blanca

Now emerging as Sotogrande’s new lifestyle hub: retail, wellness, design studios, cafés, and services. Important for year-round residents and visitors alike.

Polo Valley – “The Hills” project

A transformative mixed-use proposal featuring:

• Polo field
• 5-star hotel
• Luxury villas
• Commercial space
• Private medical centre
• Underground parking

If realised, this will significantly elevate Sotogrande’s global polo stature.

A New Sotogrande Tennis Academy (under construction)

A major sports asset, likely to attract international young athletes and families.

New International School (in planning)

Growing demand and SIS capacity pressures are accelerating plans for a second school — a major driver of medium-term residential demand.

Acciona – Torreguadiaro Development

Sustainable, modern homes bridging Sotogrande and the beach-oriented village lifestyle.

La Finca – New Phases

Demand continues, with modern villas/townhouses offering strong value and excellent finishes.

Santa María Polo Fields Redevelopment — Los Pinos (by Santander / LandCo)

One of the most significant long-term catalysts for Sotogrande in decades.

Planned:

• 50 luxury homes
• 200-bed luxury hotel
• 11,000m² commercial
• Substantial infrastructure upgrades (roads, riverbank reinforcement, marina access improvements)

Impact:

• Elevates Sotogrande’s global brand
• Strengthens tourism and hospitality economy
• Attracts further premium investment
• Enhances connectivity and accessibility

• Continuous improvements along the A-7/N-340 have reduced travel times to Marbella and Málaga.
• This is driving a dual-lifestyle trend: social life in Marbella, home life in Sotogrande.

• Global instability is pushing HNWIs toward safe jurisdictions.
• Southern Spain is benefiting from this realignment.
• The “Trump effect” and U.S. uncertainty are accelerating moves from affluent American and Latin American families into Europe.

Sotogrande stands out due to:

• Security
• Climate
• Long-term value stability
• International schooling
• Low-density living

Predictions for 2026:

• Ultra-prime and prime: +3–4% annual growth
• Mid-market: Flat to modest growth due to price sensitivity
• Key outperformers:
  • Frontline golf
  • New-build modern villas
  • Energy-efficient homes
  • Marina-front apartments (scarcity)

High-end buyers remain relatively unaffected by financing conditions.

If the UK - EU - Spain agreement on Gibraltar is ratified, except:

• Improved mobility
• Increased confidence among cross-border professionals
• Enhanced airport relevance
• Strong uplift in the Sotogrande–Gibraltar corridor
• Growing demand for high-end rentals and family homes

This could be the single most significant boost to Sotogrande’s visibility since the 1990s.

✅ New Website launched in 2025
✅ Expanding Visibility Through SEO & AI Platforms
✅ Real, Reliable Content - Reviewed by Experts
✅ Over 30 guests in "Charlie in Sotogrande" Podcast
✅ More than 5.000 subscribers to our youtube channel and constantly increasing
✅ An updated blog about Sotogrande and local happenings
✅ Active presence on +10 different social media platforms
✅ The Most Targeted and Effective Email Campaign in the Sotogrande Market
✅ Strongest Personal Branding in the Sotogrande Market
✅ We keep offering professional home valuations through our own tool
✅ We push properties across printed and online local and international media.
✅ Paid Ads in Google and Social Media

Sotogrande enters 2026 in a position of strength, characterised by:

• Scarce supply of prime inventory
• Continuing international appeal
• Growing hospitality and residential infrastructure
• Strong community life and world-class amenities
• Rising global awareness

2026 will bring more of the same, but likely at a slightly slower rhythm, with the premium and ultra-prime segments continuing to outperform the general market.

Sotogrande remains one of Europe’s most compelling luxury residential destinations; private, secure, international, and increasingly globally recognised.