As many of you will know, The Resort Group just opened its Tortuga Beach and Spa Resort on Sal Island in the Cape Verde archipelago off West Africa. In the announcement of the opening the firm announced another development that it is currently building right beside Tortuga. The 1,210 unit Dunas Beach resort is twice the size in more ways than one. We have also learned that the group plans to build a luxury hotel resort between the two developments.
This is indicative of how the overseas property industry has changed in the past few years. Whereas before the crisis, emerging markets like Cape Verde would be peppered with small developments from small to medium sized enterprises, now we are seeing larger resorts, multiple resorts in the same area by the same developer, and resort villages by developers working together.
This is undoubtedly because of the mergers and acquisitions made at the height of the crisis, as bigger companies found strength in numbers, and smaller ones accepted low prices to avoid bankruptcy.
This could be seen as both good and bad for consumers in the overseas property industry: good because the market is now dominated by large companies, which are reputable and make purchasing property safer, because there is a smaller risk that they wouldn't be able to make refunds in the event of trouble. Bad because fewer companies means less competition and therefore higher prices.
The Resort Group's huge resort on Cape Verde also shows off another trend, the one of increasing quality. Between the three that area of Sal Island will be home to one of the world's finest resort village community, hands down.
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