It’s been another year dominated by politics, with Brexit of course being right at the top of the agenda for most UK investors – but what are the impacts on the Cape Verde property investment market?
Cape Verde has risen to become one of the world’s top go-to overseas investment hotspots in recent years. Since 2000, the country has become an exceptionally strong tourist magnet, with thousands upon thousands of holidaymakers flocking to the tropical archipelago 300 miles off the west coast of Africa each year, creating huge demand for luxury accommodation. Attracted by the year-round summer temperatures, the warm waters, the endless beaches and vibrant culture, tourists from all over the globe are quite literally pouring into Cape Verde, bolstering the economy and creating ideal conditions for positive overseas property investments.
At a time when there’s so much uncertainty in the real estate market at home, Cape Verde property is becoming increasingly attractive to smart, modern investors, who are now realising that there are some great returns to be sought from the buy-to-let market in Cape Verde, and a whole host of lifestyle benefits sweetening the deal to boot.
Investors Are Taking on More Risk
PricewaterhouseCoopers’ (PwC) ‘Emerging Trends in Real Estate: Europe 2018’ report reveals some interesting investment trends as we move forward into 2018.
To begin with, one of the biggest focus points for investors is on high-quality assets in the strongest markets – but 80% investors are now taking on more risk to achieve target returns.
(Image source: pwc.com)
What’s more, there is now a stronger sense that prime assets in the European market are overpriced, and that extracting value from real estate anywhere on the continent will continue to be a challenge in the increasingly uncertain and unpredictable environment.
Some 76% of the 512 investors and real estate industry leaders surveyed for the PwC report, believe that real estate returns will become harder to achieve in 2018, increasing the importance of smart asset management – and smart investments – going forward.
(Image source: pwc.com)
Investment into UK Property Will Decrease as a Result of Brexit
Brexit, of course, remains a pressing issue for many. As one London-based Fund Manager puts it in the report: “What everyone finds so troubling about the Brexit situation is, there is no clear path to what it is going to look like. Businesses don’t like uncertainty, and there is no end in sight to that.”
The survey data reveals that despite Brexit-induced pessimism being somewhat lower than it was last year, some 80% of those surveyed still believe that both UK real estate values and investment volumes will fall in 2018 – with 18-20% believing that this drop will be substantial.
(Image source: pwc.com)
What 2018 Investment Trends Mean for Cape Verde Property
UK investment trends don’t spell particularly good news for the domestic property market. With investors taking on greater risk for returns that are harder to achieve, and with Brexit still very much a live issue causing the vast majority to be somewhat gloomy about both investment volume and real estate values, it’s no surprise that the overseas property market is continuing to look increasingly appealing as we move into the New Year.
Cape Verde is a great property investment location with a rapidly developing tourist industry that is proving to be integral to the success of the market. As more and more people from all over the globe are choosing Cape Verde as a holiday destination, the demand for luxury accommodation is increasing and is only set to continue on this trajectory for the next decade at least.
The latest figures from the World Travel & Tourism Council (WTTC) reveal that Cape Verde expects to receive some 578,000 international tourist arrivals in 2017. This figure will rise to 728,000 by 2027, and generate expenditure of CVE 78.8 billion.
(Image source: wttc.org)
It is for this very reason that Cape Verde property represents a much safer alternative to the buy-to-let property market at home, and with The Resort Group PLC, fixed returns are also much easier to achieve.
Our latest development – the White Sands Hotel & Spa, currently in construction – is located right on the beachfront on the glorious Island of Boa Vista. Just footsteps away from the magnificent white-sanded Santa Monica Beach, the White Sands Hotel & Spa is being built for deluxe guest experiences, and is the first of six such Resorts planned for Boa Vista over the coming years.
With its stunning panoramic views, 5-star facilities, and proximity to the most beautiful sugar-white sands in the country, the White Sands Hotel & Spa will attract beach-loving visitors from all over the globe right around the calendar, due in no small part to the fact that Cape Verde is blessed with year-round sunshine and temperatures that average between 25°C and 30°C for a full twelve months of the year.
Fixed Returns from Your Cape Verde Property with 5/6/7 Property Options
The Resort Group PLC also run a proven investment model that not only makes investment easy, but delivers fixed returns from the very first day of purchase.
Our 5/6/7 Property Options offer means that investors start enjoying fixed returns from the moment the resort opens. This offer starts with a 5% net rental yield in the first year, increasing to 6% in the second year and rising again to 7% in year three – providing the long-term security you need from your investment.
What’s more, with our Hotel Managed Program, these can be completely hands-free fixed returns as The Resort Group PLC becomes responsible for the management of your Cape Verde property. Under the Programme, your Cape Verde property will be marketed to millions of holidaymakers worldwide, through some of the world’s largest and most reputed tour operators and travel agents. We will also take care of all occupancy, rent collection, maintenance and cleaning – and all this while you still get to enjoy the benefits of holidaying in your Cape Verde property for up to five weeks every year.
In light of investment trends pointing towards investors having to take on higher amounts of risk for returns that are harder to achieve, the Cape Verde property market offers the perfect solution, with easy, long-term, hands-free fixed returns from day one.
If you’d like to learn more about the Cape Verde property investment opportunities available at the White Sands Hotel & Spa, our 5/6/7 Property Options, or are interested in book a VIP “Try Before You Buy” Investor’s Tour of the development, get in touch with The Resort Group PLC today.