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Where is Cape Verde anyway?

29th October 2009

Dunas_Beach-Sunset1As someone selling investment property in Cape Verde (Dunas Beach Resort) I welcome this question. This is because it proves to me how undiscovered the country is, and how far it has to come before it reaches the prices of its comparables. As any investor will appreciate buying in a market that has all the right ingredients for growth, but just hasn’t grown yet will be a great investment.

The main reason this is a good question for us to hear and how it relates to our investment is that, our opportunity is to purchase the freehold of an apartment which is run by the top resort operator in the world. Your rental yields will be governed by the occupancy that your resort operator can achieve and in Cape Verde this should lead to some outstanding rental yields.

The yields we have worked out on our investment come in somewhere around 10%, now this is working on a 68% occupancy. However the current on island occupancy is 80% and the only other 5* resort on the island is seeing occupancy levels of 98%. This could mean rental yields of around 20%+ for our investors.

Rental yields are not the only attractive part of this investment. For the last 10 years Cape Verde has seen an average capital growth year on year of 30%. Now if we were to assume only 15% growth pa, we have worked out that upon completion you could have equity in your property whilst still retaining up to a massive £100k cash-back!

Why would this continue? Well here are some points you may or may not know about Cape Verde and the developer of Dunas Beach Resort:

  • Cape Verde has EU special status ($1.2 billion investment from the EU for tourist development)
  • “It has been weathering the global economic crisis from a position of strength.” IMF
  • The number of direct flights is increasing everyday.
  • Tourism figures rose 27.5% last year and are still rising with more flights from new countries everyday.
  • The resort has double the build cost of any other “on island” development at €1400 psqm.
  • Land is fully unencumbered.
  • Developers can only build 4 floors high. This means that land available for building on will deplete quickly and therefore it is likely that prices will rise quickly, as supply and demand tips in favour of demand.
  • 1 hour time difference to the UK.
  • 5 and a half hour flight time from the UK.
  • Phenomenal white sand beaches

See our Cape Verde Investment

Want to hear more? e-mail or freephone Fresh Invest on 0800 043 69 56

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