Overseas property: Where to buy in Spain's sunny south

Marbella has a habit of hogging the Spanish property headlines and right now it's at it again, entangled in the current bout of imprisoned mayors allegedly involved in multi-million euro property rackets.

But head 45 miles west and you will find a pocket of the Costa del Sol that is the focus of more discreet attention, thanks to the rapid growth of the off-shore gambling industry in Gibraltar 15 minutes away.

"We're in the commuter belt for Gibraltar and hundreds of people are coming over to work there, but they're all choosing to live in Sotogrande," says Ian Bateman from Holmes Property Sales, based in Sotogrande, Spain's largest private leisure and sports resort development. "You also see young traders with liquid funds who work in Gib' and rent in Sotogrande, so there is a decent lettings market," he adds.

Despite the coast's general stasis in prices at the lower end of the market due to the oversupply of new apartments, Bateman reports a flourishing year in Sotogrande's upper echelons. "We're a quality sports resort, not purely a second-home market or a place that attracts large numbers of pure buy-to-let investors," he says. "The average property we sell is £600,000, and homes in the £1.5m bracket are selling well to various nationalities."

David Vaughan from Sotogrande UK, the exclusive British office for property in Sotogrande, talks of the estate as "a little island, another world in itself" and prefers to divorce Sotogrande from goings-on elsewhere on the coast: "We don't call ourselves the Costa del Sol. We call ourselves Southern Spain. We sail along quietly, without offering prospective property buyers any Flash Harry promises of 25 per cent price increases or guaranteed rental returns. People come here for the golf or the polo, or just because of the fantastic setting."

Created 45 years ago as a world-class sporting estate, the 4,400-acre estate is home to Europe's most prestigious polo club, Santa Maria, and to Spain's most illustrious golf course, Valderrama, host to the 1997 Ryder Cup.

Sotogrande's five golf courses provide 138 holes in all - and San Roque is just down the road. Forgetting golf for one moment, Sotogrande also sits alongside long, sandy beaches with two beach clubs, a marina, riding stables, a tennis club, sailing club and an international school.

New development continues apace, albeit in a controlled and discreet way. In the marina, the most densely developed area of Sotogrande, spacious two-bedroom apartments in the Ribero del Marlin development start at €430,000 (£307,000) through Sotogrande UK, with indoor and outdoor pools, a gym, 46 shops and 24-hour security on site.

Elsewhere are individual villas dotted on spacious half-acre plots. New villas and townhouses in Los Cortijos de la Reserva de Sotogrande from €500,000 (£357,000) for two bedrooms, due for completion later this year.

Building plots from 2,500 sq m in La Reserva de Sotogrande, overlooking the golf course, lakes and sea, start at €350,000 (£250,000) and 15 of the total 40 were sold on the day of launch.

"Properties here are far bigger than the usual build size on the coast," says Vaughan. "Townhouses on the golf course range from 160 to 190 sq m," he adds. "Per square metre, the price is extremely low, especially when you take into account the quality of specification and the frontline golf location." Well-to-do as the private community may be - homeowners include Genesis's Mike Rutherford ("He loves playing polo," says Vaughan) and Formula 1 boss Eddie Jordan - Vaughan says part of Sotogrande's charm is the diverse clientele.

"It's so bloody friendly, it attracts the entire range," Vaughan enthuses. "There's a wonderful mix, including lots of amazingly famous families living here," says Vaughan, "though most of them would hate to be mentioned. And you also get lorry drivers from Essex who have made a bit of money."

Also expect half of Madrid to descend on Sotogrande during the school holidays. "Around 65 per cent of our buyers are Spanish, mainly from wealthy Madrid families, which also helps the market here to remain more buoyant than areas that depend on foreign buyers," says Vaughan.

Mark Stucklin from independent online advisory Spanish Property Insight comments that it's the estate's facilities that set it apart. "There's nowhere else in Europe where you can get this level of sports, restaurants and everything you want in an upmarket self-contained world like this," he says.

"When the market gets tough, location is the key thing and Sotogrande is near Gibraltar airport, near Tarifa's hip, surfer community and it has beautiful hinterland," he adds. "Dreary, ordinary properties may suffer in a slow market just as they would anywhere on the coast, but something special here will command top whack."

Separated from Sotogrande by a mile-and-a-half of undeveloped beach-side land is Alcaidesa, 10 minutes from Gibraltar. Few buyers knew about the area until the early Nineties as the land was entirely owned by the Spanish army.

But now development is starting in force - and, like Sotogrande, the new breed of Gibraltar worker is choosing Alcaidesa as a more aesthetic home than the British colony.

Rivalries run high between the neighbouring developments. While Vaughan from Sotogrande UK describes Alcaidesa as "a beautiful piece of land screwed up by too many owners building too many different types of property, with no masterplan", Val Lloyd from Alcaidesa Property Search begs to differ.

"Sotogrande lives off its name and you pay a lot for that privilege," states Lloyd. "Alcaidesa shares the same stretch of coast, but it's hillier with better views. You can drive to Sotogrande in 10 minutes and use all their facilities but live somewhere without the snob appeal. Alcaidesa is far better for a quieter lifestyle."

Alcaidesa's selling point is its spectacularly scenic Links Golf course which runs alongside the beach and allows golfers to gaze across the sea to Africa.

Lloyd adds that Alcaidesa is too hilly to ever become over-developed. But buyers should be aware that some properties here are illegal, involved in the the huge money-laundering scandal that was uncovered last year in what the Spanish Police called Operation White Whale.

"That's why buyers need to be very careful and use someone like me who can lead them in the right direction," says Val Lloyd.

Current properties on her books start at €300,000 (£231,000) for two-bedroom apartments or townhouses set back from the coast. For a similar apartment overlooking the beach and golf course, expect to pay nearer €800,000 (568,000), or €1.2m (£852,000) for a penthouse.

While Sotogrande prides itself on its international community, Alcaidesa is more staunchly British. "It's a good area for people who are getting older because healthcare is excellent and everyone speaks English," says Lloyd.

Contacts

Sotogrande UK (020 7736 1700; www.sotogrande.com)

Holme Sotogrande (00 34 956 795 340; www.holmesotogrande.com)

Alcaidesa Property Search (01905 611920; www.alcaidesapropertysearch.com)

British Airways flies to Malaga, Seville and Gibraltar. Book at www.ba.com