Sunday, 21 February 2010

Crisis in paradise

The worlwide financial crisis has impacted on Sotogrande, the luxury enclave within the municipality of San Roque. Home sales have dropped drastically over the last year, according to EuropaSur, even though prices have come down by an average of around 30%. But Sotogrande still keeps its image of exclusivity in the real estate market. Alex Medina, who heads the Entidad Urbanística de Conservación de Sotogrande, insists that although things are tough, "Sotogrande is strong enough to recover.">Plenty of local estate agents have closed down. Medina points out that there is a difference between the type of agencies involved: the ones who deal in 'second-hand' homes and those that sell new properties. It is the former who have suffered the most although most of the long established ones such as Sotogrande, Holmes and Van Loon Partners, remain at their post. They agree that there are some bargains available that, as one of them put it, "would have been unthinkable just a couple of years ago." There are apartments selling at €200,000 that in 2008 were priced at least a third more than that.

Not everything is accessible to all, however. The average valuation for a single family home with a garden is around the €600,000 mark and there are properties that can reach the €5 million price tag, though there are only a few of these. Significantly, Kristina Szekely, who specializes in the top end of the market, has considerably downsized her office in Sotogrande, although her organization operates at "a little less than normal" from Marbella and lists several properties in the area.

Sales of boat moorings are also down, in parallel with the rest of the market. Many of the newer developments close to the marina include mooring in their prices. Boat sales, however, are also reflecting the general market conditions.

The stable population of Sotogrande is calculated at some 12,500 which doubles, at least, in the summer, and that's not counting holidaymakers staying at hotels. Most residents have little if any contact with the municipality outside the encalve itself. Most of them are not even registered at the Town Hall, which has only 2,584 on their books and of which 335 are British. Of the 12,500 mentioned above, Sotogrande says some 6,000 are British, followed by a similar number of Spaniards and, in lesser figures, other nationalities such as Scandinavian, German, Belgian, South African, Philippino and South and Central Americans.

These figures have remained approximately the same for years, as has the standard profile of the residents: people who enjoy sports (particularly golf, polo and sailing), want tranquility with their families in an atmosphere of privilege. And that is exactly what estate agents of all kinds, and Sotogrande S.A. (the company now owned by NH Hotels) itself, market at the various tourism and property fairs throughout the world.

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