Sotogrande has been one of Spain’s key luxury property markets for more than half a century.

The exclusive private enclave attracts everyone from captains of industry and celebrities to professional sportsmen and politicians.

Yet its property market moves in cycles, with annual purchases ranging from as few as 100 a year to well over 200.

At present, sales are slower than usual due to ‘a shortage of homes on the market and optimistic pricing’, explains Ben Bateman of Sotogrande’s leading agency, Holmes.

“The balance between supply and demand is simply out of kilter,” says the experienced agent, who took over the five-decade-old firm from his father five years ago.

“Supply is short, but not structurally and overly optimistic, while demand is still firm but more realistic. It is the same in sales and rentals, and I hope it won’t last.”

Bateman, who grew up in the upmarket resort before attending Bristol University, puts the current cycle down to ‘generational changes’.

“Most homeowners usually own for five to ten years before they sell up, it’s the cycle of things, life moves on, children grow up, families find new interests,” he explains.

And with so many properties bought in the period following Covid and into early 2022, supply naturally began to fall.

Around half of all available homes were sold during that period, while listings at Holmes dropped from 675 in 2020 to just 352 by the end of 2022

“We are now up to around 375 properties but we need more,” he estimates.

Another issue, Bateman says, is that owners can be influenced by the asking prices they see on property portals such as Idealista when deciding how much to list their properties for.

This can result in homes being overpriced and failing to attract potential buyers.

“The difference between the portals’ average prices and the official prices we see via the notaries is skewed. They are quite different.

“It is not helped by too many inexperienced agents who promise sellers they can achieve these high prices when the truth is rather different.”

He continues: “Put your property on the market at the right price and it will sell in short order. But if not, it may still be on far longer than expected and might even damage the prospect of a successful sale, later.”

Mindset

Most buyers in Sotogrande are families with a ‘similar mindset’, explains Bateman.

They come from all around the world, but the majority are ‘cosmopolitan and educated to university level’.

“They are looking for somewhere nice to spend time, not to show off their wealth,” he explains. “That’s what Sotogrande offers.”

As for the current cross-section of buyers, there is particularly high demand in the €5 million-plus bracket, with ‘even strong interest over €10 million’, where Holmes has sold two properties this year.

For more information, visit www.holmesotogrande.com.

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