The area was continuously developed until the demise of the Soviet Union.
During Vladimir Putin's term in office, the city witnessed a significant increase in investment, although many Russian holidaymakers still flock to the cheaper resorts of neighbouring Abkhazia (Georgia), Ukraine, or to the Mediterranean coast of Turkey.Within the framework of administrative divisions, it is, together with one urban-type settlement (Krasnaya Polyana) and seventy-nine rural localities, incorporated as the City of Sochi—an administrative unit with the status equal to that of the districts.The coastline was ceded to Russia in 1829 as a result of a Caucasian War and Russo-Turkish War, 1828–1829; however, the Circassians did not admit the Russian control over Circassia and kept resisting the newly established Russian outposts along the Circassian coast (Adyghe: In 1838, the fort of Alexandria, renamed Navaginsky a year later, was founded at the mouth of the Sochi River as part of the Black Sea coastal line, a chain of seventeen fortifications set up to protect the area from recurring Circassian resistance.At the outbreak of the Crimean War, the garrison was evacuated from Navaginsky in order to prevent its capture by the Turks, who effected a landing on Cape Adler soon after.From the 6th to the 11th centuries, the area successively belonged to the kingdom of Lazica and kingdom of Abkhazia who built a dozen churches within the city boundaries.
The Christian settlements along the coast were destroyed by the invading Göktürks, Khazars, Mongols and other nomadic empires whose control of the region was slight.
The northern wall of an 11th-century Byzantine basilica still stands in the Loo Microdistrict.
From the 14th to the 19th centuries, the region was dominated by the Abkhaz, Ubykh and Adyghe tribes, the current location of the city of Sochi known as Ubykhia was part of historical Circassia, and was controlled by the native people of the local mountaineer clans of the north-west Caucasus, nominally under the sovereignty of the Ottoman Empire, which was their principal trading partner in the Muslim world.
Other rivers include the Ashe, the Psezuapse, the Sochi, the Khosta, and the Matsesta. The northeastern part of the city belongs to the Caucasian Biosphere Reserve which is a World Heritage Site spanning vast areas in Krasnodar Krai and Adygea.
Almost the whole area of the Greater Sochi, with the exception of the coast and of the area which belong to the Caucasian Biosphere Reserve, are included into Sochi National Park.
Being part of the Caucasian Riviera, it is one of the very few places in Russia with a subtropical climate, with warm to hot summers and mild winters.