Sotogrande is famous for being the corner of the Costa del Sol with the most luxurious accommodation in Europe. A summer resort for celebrities, international business people and even royalty, it is popular for its discreet and relaxed atmosphere, and the availability of activities like horse riding, golf and polo.
Although it has caught the eye and interest of people everywhere, the atmosphere is surprisingly friendly and peaceful. So, if you are thinking about buying a property in the area, you might have two main aims: to make a profit through rental or resell the property when the value has increased.
One of the main advantages of this investment is location. Andalusia is one of the most popular tourist destinations around the world and the Costa del Sol is known to attract people with plenty of money, so it will not be difficult for you to market to potential tenants.
Something that you should consider when it comes to making a decision is the rental options you will have for your home. The area has around 2,600 inhabitants all year round, but this number exceeds 12,500 in the summer.
So you will need to choose whether you want to rent it out all year round at a competitive price, or wait for the higher profits to be made by renting in the summer. Depending on your investment, you could earn 1,500 to 2,000 euros per month for an apartment, or up to 7,000 euros for a house in Parque San Roque.
If you are thinking about investing in property in Sotogrande, you should remember that there is always the option to resell. As well as achieving an expected average value increase of around 6 % per year, you will also be able to make the most of having a holiday home in an amazing location.
To ensure a good return, pay special attention to the location, because there are some big differences between the areas. The more services within reach, the safer and more profitable your investment will be. The port, the tennis club, the golf club and the sailing club are the heart of Sotogrande’s social scene and so these are the areas with guaranteed value.
To make the best decision for you and to calculate your return on investment properly, you could think about a mixed form of investment, where you rent out the property for a while and then sell it when it has reached the value you want. This means you can maximise your profit and get the most out of your investment.
When looking at potential income, you should also think about potential expenses that might eat into your profits. By expenses, we mean maintenance costs (community fees, private garden maintenance, taxes, etc.) and other associated expenses like mortgage interest where applicable.
As you can see, there are endless options for investing in Sotogrande. With the right strategy, you will be able to enjoy one of the most beautiful corners of Spain at the same time as getting a good return on your property investment.