The all-inclusive hotel boom sends land prices soaring in Santa Maria

An increasingly sought-after coastline

A seafront plot that used to cost 10,000,000 CVE now goes for around 25,000,000 CVE.

International chains driving up prices

Spanish, Italian and Portuguese capital has reignited demand for land in Santa Maria.

A knock-on effect on local housing

Prices of residential housing near the resorts have risen in parallel.

An island dependent on tourism-driven construction

The trend will continue for as long as the island's economic model remains undiversified.

Land sellers in Santa Maria tell their story

Owners of plots close to Santa Maria beach confirm that the offers received over the past two years far exceed any previous expectations. Several recall turning down proposals five years ago that they now consider a missed opportunity, given the pace of appreciation seen since then. This dynamic has also given rise to a speculative market in reselling plots before any construction even begins.

Comparison with Boa Vista's trajectory

The process under way in Santa Maria is reminiscent of what Boa Vista is currently experiencing in areas such as Praia de Chaves, although in Sal the phenomenon has been established for longer. Industry analysts believe Sal is setting the pattern for what could happen on other Cape Verdean islands as international hotel chains expand their presence across the archipelago. This comparison makes Santa Maria a essential reference point for understanding the rest of the national tourism market.

Residents' concern over rising costs

Residents of Santa Maria consulted for this report say they are troubled that the appreciation of tourist land is also spilling over into the price of nearby residential housing, making it harder for local families to buy. Some have chosen to move to areas somewhat further from the coast, where prices remain at more reasonable levels. The local residents' association is calling for specific measures to protect housing for permanent use.

An economic model with no alternative in sight

Neither municipal authorities nor operators in the tourism sector are, for the moment, proposing any real diversification of the island's economic model. Dependence on international hotel capital has become the main driver of the local economy, with all the advantages and risks that entails. Until alternatives emerge, the upward trend in tourist land prices in Santa Maria de Sal looks set to continue in the medium term.