Cape Verde – An Inspired Investment in an Inspiring Place

Do you find the usual raft of traditional investment products with paltry returns a rather unappealing proposition? If so, you will no doubt be pleased to know there are other options worthy of consideration – an investment property in Cape Verde for instance.

Blessed with stunningly beautiful scenery and an all year round tropical climate, Cape Verde is one of the few holiday destinations that are actually enjoying increasing levels of tourism. Palm trees line the white sandy beaches that reach out to a clear blue ocean. The sunshine is complimented by a soft breeze making for a comfortable and relaxing environment.

A luxury hotel development is in progress with a variety of suites available for investors to purchase. Some are beach front suites, some with gardens and others have their own swim-up pools. The hotel itself offers guests facilities including a spa, gym and a wide range of dining options.

Cape Verde enjoys year round sunshine, temperatures of 25 – 30 degrees centigrade and a stable climate with no hurricanes or monsoons. Consequently there is no low season, and with land value increasing at a rate of 15% per annum investors can benefit from good rental yields as well as strong capital growth.

Positioned an hour south of the Canary Islands, over 60 direct flights per week are available from many European and other cities around the world.

Tourism has grown by 115% since 2000 according to the National Institute of Statistics of Cape Verde. There are however strict regulations in place to prevent overdevelopment – and over supply. Buildings, for example must be low-rise with 2 floors being the maximum allowed. This ensures the islands remain unspoilt and retain their original character.

The islands have a democratically elected government, a growing economy, and are socially and politically stable. They also have solid property ownership rights.

There has also been a considerable investment in infrastructure: roads, energy, water and healthcare, with $240 million from the World Bank alone.

There is of course the risk that the hotel’s suites will not be filled, although currently there is an average occupancy of 80% and the island’s popularity as a tourist destination continues to grow.

Investors have the option of buying a whole suite or a fraction of a suite – as little as a twelfth, bringing this investment within range of a good deal more people than most commercial properties.

SIPP compliant, this is an opportunity to diversify your investment portfolio. Cash investors have the bonus of enjoying the suite themselves for five weeks a year. Cash investors can also opt to manage the property themselves, or have it managed for them by the hotel operator.

It is also possible to release equity in an existing property you may have to fund a suite purchase, or to club together with family, friends or business partners to co-own a property.

Anyone looking for a low risk investment property with the prospect of good returns could certainly do worse than an attractive, modern property in a desirable location in a thriving market.