Assetz® News - WITH 11% CAPITAL GROWTH AND THE INTRODUCTION OF MORTGAGES, CAPE VERDE IS BECOMING A MAJOR EMERGING INVESTMENT MARKET

WITH 11% CAPITAL GROWTH AND THE INTRODUCTION OF MORTGAGES, CAPE VERDE IS BECOMING A MAJOR EMERGING INVESTMENT MARKET

25th July 2007 |

With capital gains in the region of 11% last year, a growing local and international demand for rental accommodation and the recent introduction of mortgages, Cape Verde is being tipped as the next big thing for canny property investors. Assetz, the UK’s leading property investment specialist, recommends investing in Cape Verde, where the average two-bedroom property costs just £75,000, with a long-term view to maximise returns.

Since towards the end of 2006, investors in Cape Verde have been able to take advantage of Euro mortgages, enabling them to pay deposits in the region of 25 – 30% and therefore enjoy higher returns on their investment. The Assetz Property Investment Tracker currently shows total returns of 40% on cash invested in Cape Verde, based on gross yields of 9% and capital growth of 11%, on an average 2-bedroom property bought with a mortgage of 75% LTV.

Cape Verde, made up of 10 islands and eight islets in the Atlantic Ocean, 450km off the Western tip of Senegal, offers a year-round tropical climate with temperatures ranging from 23 to 30 degrees. Flights from the UK and Europe are on the increase, with regular scheduled departures from Gatwick and Manchester. A new airport is also being developed on the island of Boa Vista, all of which will increase the traffic of tourists to the islands.

Martin Sadler, Sales Manager of Assetz International comments:

“We have watched Cape Verde develop as an investment destination with interest over the last 12 months, during which time it has shifted from high-risk into the medium-risk category of investment. As major infrastructure is developed and influential holiday companies such as Thompson Holidays and RIU Hotels are attracted to the islands, Cape Verde is fast becoming an attractive medium-risk emerging market for overseas investors.”

The local rental market on the island of Santiago in particular, also presents excellent opportunities, as foreign embassies spring up and business opportunities increase on the islands, pre-empting a rise in demand from local and international business people. This makes the area an attractive option for investors, who can look forward to year-round rentals and therefore higher yields.

Case study: Sambala Resort, Santiago, Cape Verde
One of Cape Verde’s leading luxury developments, The Sambala Resort comprises a mixture of two and three-storey townhouses built in a colonial style, within 20 square kilometres of privately owned mountain valleys and coastline.

Phase One is close to completion, and the development will eventually incorporate four tourism villages, a 5 star hotel, tennis courts and two 18 hole golf courses. The development benefits from 8km of Atlantic coastline with a white sandy beach incorporating a marina, diving centre and a fishing lodge. The international airport at Praia is only 15 minutes away, providing easy access for holiday home owners and tourists.

Two-storey, two-bedroom townhouses set in private residential gardens with a communal swimming pool, are available from £165,000 / £111,590. A five-year leaseback scheme, with a guaranteed rental income of 5% per annum is available for those seeking a hassle-free investment.

Contact Assetz Cape Verde on 0845 430 5201 or visit www.assetz.co.uk/capeverde

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/3649.html. Alternatively, please see our full press release archive.